Would that take the place of Ginnie Mae Securities?
I’ve got $300k in CDs coming due in a couple of weeks and was thinking of putting it into a GNMA fund that is paying 3.96% currently.
CD rates suck now and I don’t want to lock anything up long term as I think that interest rates will climb in the near future.
Now that Fannie and Freddie have been nationalized and thus under the light of public scrutiny (no hiding behind "corporate" accounting and sets of books, like Franklin Raines and Jamie Gorelick had done), "they" are trying to set up a replacement, "new and improved" public-private partnership where they can move assets around at will and cherry-pick good assets from bad ones - "good bank, bad bank".
They might still sell MBS rated / backed funds, but it would not be the same as GNMA.