U.S. Considers Sale of Ginnie Mae Shares

The Clinton administration is considering a plan to sell $2.5 billion worth of shares in the Government National Mortgage Assn., the agency that finances more than 12% of U.S. mortgages. The proposal is being reviewed by the Office of Management and Budget and the Department of Housing and Urban Development, said HUD spokesman Peter Ragone. The plan, if passed, could make Ginnie Mae more competitive with mortgage finance giants Fannie Mae and Freddie Mac, whose shares are publicly traded. Those two companies are the No. 1 and No. 2 buyers of U.S. home loans, and they either buy or issue securities backed by about 70% of mortgages. Existing Ginnie Mae securities would continue to be guaranteed by the U.S. Treasury after the conversion to a private company.