In 1968 Congress activated the Govern-

ment National Mortgage Association

(GNMA) to help finance needed housing

by making real estate mortgages attrac-

tive to all types of investors regard-

less of previous experience with mort-

gages. GNMA developed a new type of

mortgage-backed security--the Pass-

Through Ginnie Mae--which represents

a pool or package of government insured

mortgages. The timely payments of

principal and interest on these securities

are guaranteed by GNMA. In turn, these

guarantees are backed by the full faith

and credit of the United States govern-

ment.

The Ginnie Mae Manual is intended as a

guide for both institutional and indi-

vidual investors. It is for information

purposes only. Under no circumstances

is it to be used or considered as an offer

to sell, a solicitation of any offer, or an

offer to buy any security. While the in-

formation contained in the manual has

been obtained from or is based upon

~ources believed reliable, the GNMA

Mortgage-Backed Secttrities Dealers As-

sociation does not represent that it is

accurate or complete and should not be

relied upon as such. Members of the As-

sociation may from time to time have

long or short positions and buy or sell

securities referred to in the book.