Prospectus Supplement – GNMA II Home Equity Conversion MBS (Fixed Rate)

• Legal Form Number: HUD-11777-II
• Issuer: Ginnie Mae
• Section: Ginnie Mae

GINNIE MAE 5500.3, REV. 1

Date: 06/01/2014 1 Appendix IV-31

Prospectus Supplement

(To Base Prospectus dated June 1, 2014)

Government National Mortgage Association

$

%

Ginnie Mae II

Home Equity Conversion Mortgage-Backed Securities

Guaranteed as to the Timely Payment of Principal and Interest

by the Government National Mortgage Association

(Backed by the Full Faith and Credit of the United States)

Issued by:

Ginnie Mae Pool No.:

Central Paying and Transfer Agent:

The Bank of New York

Issue Date:

Number of Participations underlying the Securities:

Depository:

The Federal Reserve Bank of New York

Final Distribution Date:

Pool Stratification Tables: See Annex.

Refer to the attached Annex for statistical information regarding the Ho me Equity Conversion Mortgage-Backed

Securities.

You should read the base prospectus and this prospectus supplement (collectivel y, the “prospectus”).

The securities offered hereby (the “Securities” or “HECM MBS”) provide for the timely

payment of principal and accrued interest. Interest will accrue, commencing in the month of

issuance, on the Securities at the per annum rate specified above for the initial Distribution Date

and will adjust thereafter based on the weighted average of the interest rates on the underlying

Participations as described in this prospectus. The accrued interest will not be paid to

securityholders monthly but will be added each month to the then outstanding principal amount

of the Securities, and will be payable together with the original principal amount of the Securities

as set forth in the related prospectus supplement to the extent such amount has not been paid no

later than the Final Distribution Date. In general, any payments received in respect of any

Date: 06/01/2014 2 Appendix IV-31

HECMs prior to the Final Distribution Date will be passed through pro rata to the respective

holders of participation interests in the outstanding advances made to a borrower relating to the

HECM. In addition, the Ginnie Mae Issuer is obligated to cover any interest shortfalls resulting

from borrower prepayments. It is uncertain when payments will be made in respect of your

Securities.

The Government National Mortgage Association (“Ginnie Mae”), a wholly-owned corporate

instrumentality of the United States of America within the U.S. Department of Housing and

Urban Development, guarantees the timely payment of principal and interest on each Class of

Securities. The Ginnie Mae guaranty is backed by the full faith and credit of the United States of

America.

The Securities are exempt from the registration requirements of the Securities Act of 1933, as

amended, and are “exempted securities” within the meaning of the Securities Exchange Act of

1934, as amended.

OVERVIEW OF THE SECURITIES AND THE UNDERLYING HECMs

The Securities are based on or backed by participation interests in advances made to borrowers

and related amounts (each, a “Participation”) in respect of a HECM, also commonly referred to

as a “reverse mortgage loan,” insured by the Federal Housing Administration (“FHA”). Ginnie

Mae guarantees the timely payment of principal and interest on the Securities. The Ginnie Mae

guaranty is backed by the full faith and credit of the United States of America.

The HECMs to which the Participations relate are mortgage loans designed specifically for

senior citizens to convert equity in their homes to cash. HECMs were originated or acquired by

and will be serviced by the parties as set forth herein.

No interest or principal is due by the borrower in respect of any HECM until maturity, which

generally does not occur until after the occurrence of a Maturity Event. A Maturity Event

generally occurs (i) if a borrower dies and the property is not the principal residence of at least

one surviving borrower, (ii) a borrower conveys all of his or her title in the mortgaged property

and no other borrower retains title to the mortgaged property, (iii) the mortgaged property ceases

to be the principal residence of a borrower for reasons other than death and the mortgaged

property is not the principal residence of at least one surviving borrower, (iv) a borrower fails to

occupy the mortgaged property for a period of longer than 12 consecutive months because of

physical or mental illness and the mortgaged property is not the principal residence of at least

one other borrower, or (v) the failure by the borrower to perform any of its obligations under the

HECM. Some HECMs provide for the deferral of a Maturity Event when the last surviving

borrower dies with a non-borrowing spouse who satisfies FHA qualifying attributes and

requirements for deferral. This deferral period ceases when a non-borrowing spouse fails to

qualify or satisfy FHA requirements for deferral, at which point the Maturity Event is no longer

deferred and the HECM will become due and payable in accordance with FHA procedures.

However, interest accrues on the HECM at the applicable mortgage interest rate and is added

each month to the outstanding principal balance of the HECM. A borrower may prepay in