The Government National Mortgage Association, known as Ginnie Mae, will soon join Fannie Mae and Freddie Mac as a trillion-dollar guarantor of subprime mortgages. Like its cousin companies, Ginnie Mae is owned by taxpayers and appears to be heading toward trouble with its mortgage exposure. The inspector general of the Department of Housing and Urban Development issued scathing reviews of the Federal Housing Administration's practices. Ginnie Mae bundles and then sells FHA-insured mortgages.

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