Ginnie Mae wants the flexibility to lower the denomination of its mortgage-backed securities, which could be a sign that it plans to go after retail investors.Currently, Ginnie cannot guarantee securities with a face amount of less than $25,000. However, the U.S. government agency has issued a proposed rule that would eliminate that restriction so it can issue MBS in denominations as small as $1,000. The comment period ends June 14. Ginnie is continually looking at ways to "remain attractive to investors," the proposal says. "To this end, Ginnie Mae would like to offer investors different denominations of Ginnie Mae guaranteed securities." The proposed rule does not say anything about marketing $1,000 Ginnie Mae securities. Fannie Mae and Freddie Mac offer MBS with denominations as low as $1,000. Ginnie Mae can be found online at http://www.ginniemae.gov.

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