Prospectus Ginnie Mae I Construction and Permanent Loan Securities U.S. Department of Housing and Urban Development Government National Mortgage Association OMB Approval No. 2503-0033 (Exp.09/30/2010) Public reporting burden for this collection of information is estimated to average 8 minutes per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Ginnie Mae may not collect this information, and you are not required to complete this form, unless it displays a currently valid OMB control number. The information is required by Sec. 306(g) of the National Housing Act or by Ginnie Mae Handbook 5500.3, Rev. 1. The information provides specific deal information and serves to educate investors. The information collected will not be disclosed outside the Department except as required by law. Estimated Amount $ % Ginnie Mae I Mortgage-Backed Securities (Construction Loan Securities) To Be Redeemed By % Ginnie Mae I Mortgage-Backed Securities (Permanent Project Loan Securities) Guaranteed as to the Timely Payment of Principal and Interest by the Government National Mortgage Association (Backed by the Full Faith and Credit of the United States) The securities offered pursuant to this prospectus (the "Securities") are based on and backed by a loan insured under FHA Section (the "Loan"). The Loan is a construction loan that will be automatically converted into a permanent project loan at the time it is finally endorsed for insurance by the Federal Housing Administration ("FHA"). As of the first day of the month following the conversion, the Construction Loan Securities will be canceled, and the Permanent Project Loan Securities will be issued. Issued by: Ginnie Mae Pool No. (Construction Loan Securities): Issue Date: Maturity Date (Construction Loan Securities): Depository: Ginnie Mae Pool No. (Permanent Project Loan Securities): First Interest Payment Due: Maturity Date (Permanent Project Loan Securities): Transfer Agent: The Federal Reserve Bank of New York Information concerning the project and the payment terms (including prepayment penalties, if any) of the Mortgage on which the Securities are based is set forth in "Annex -- Special Disclosure." The Construction Loan Securities provide for timely payment of interest at the specified rate until the Construction Loan Securities mature. The Issuer is obligated to commence payments of interest on the Construction Loan Securities by the fifteenth calendar day of the month following the month of issue, except as stated below, and to continue such payments every month thereafter over the life of the Construction Loan Securities, whether or not such interest is collected by the Issuer. Previous editions are obsolete. Page 1 of 10 Appendix IV-10 form HUD 1731 (01/2006) ref. Ginnie Mae Handbook 5500.3, Rev. 1 American LegalNet, Inc. www.FormsWorkflow.com The Permanent Project Loan Securities provide for timely payment of interest at the specified rate and scheduled installments of principal. The Issuer is obligated to commence payments of interest and any scheduled installments of principal on the Permanent Project Loan Securities by the fifteenth calendar day of the second month following the final endorsement of the permanent project loan for insurance by FHA and to continue such payments every month thereafter over the remaining life of the Mortgage, whether or not such interest and principal are collected by the Issuer. Scheduled installments of principal will become payable as provided herein under "Payments of Principal and Interest." See "Maturity, Prepayment, and Yield" herein for a discussion of certain significant factors that should be considered by prospective investors in the Securities offered hereby. The Government National Mortgage Association ("Ginnie Mae") guarantees the timely payment of principal and interest on the Construction Loan Securities and principal and interest on the Permanent Project Loan Securities. The Ginnie Mae guaranty is backed by the full faith and credit of the United States of America. The Securities are exempt from the registration requirements of the Securities Act of 1933, as amended, and are "exempted securities" within the meaning of the Securities Exchange Act of 1934, as amended. Ginnie Mae Guaranty Ginnie Mae is a wholly-owned corporate instrumentality of the United States of America within the Department of Housing and Urban Development with its principal office at 451 Seventh Street, S.W., Washington, D.C. 20410. Timely payment of principal of and interest on the Securities is guaranteed by Ginnie Mae pursuant to Section 306(g) of the National Housing Act of 1934, as amended (the "National Housing Act"). Section 306(g) provides that "[t]he full faith and credit of the United States is pledged to the payment of all amounts which may be required to be paid under any guaranty under this subsection." An opinion, dated December 9, 1969, of William H. Rehnquist, Assistant Attorney General of the United States, states that such guaranties under Section 306(g) of mortgage-backed securities of the type offered hereby are authorized to be made by Ginnie Mae and "would constitute general obligations of the United States backed by its full faith and credit." Borrowing Authority�United States Treasury Ginnie Mae, in its corporate capacity under Section 306(d) of the National Housing Act, may issue to the United States Treasury its general obligations in an amount outstanding at any one time sufficient to enable Ginnie Mae, with no limitations as to amount, to perform its obligations under its guaranty of the timely payment of the principal of and interest on the Securities offered hereby. The Treasury is authorized to purchase any obligations so issued. Previous editions are obsolete. Page 2 of 10 Appendix IV-10 form HUD 1731 (01/200)6 ref. Ginnie Mae Handbook 5500.3, Rev. 1 American LegalNet, Inc. www.FormsWorkflow.com The Treasury Department has indicated that it will make loans to Ginnie Mae, if needed, to implement the aforementioned guaranty as stated in the following letter: The Secretary of the Treasury Washington February 13, 1970 Dear Mr. Secretary: I wish to refer to your letter of November 14, 1969 asking whether the timely payment of principal and interest on mortgage-backed securities of the pass-through type guaranteed by the Government National Mortgage