The Government National Mortgage Association, a wholly-owned federal corporation within HUD, will immediately implement a policy change that will save its lenders who supported American military members following September 11th approximately $6 million.

"Today's change is a prime example of how Ginnie Mae is working to meet the needs of lenders, while staying true to our mission to provide more Americans with affordable housing opportunities," Secretary Martinez said when he announced the policy change on Wednesday.

Ginnie Mae is lowering lending and processing costs for its issuers by expanding its reimbursement policy under the Soldiers' and Sailors' Civil Relief Act to include all Reservists and National Guard called to active duty. Effective immediately, Ginnie Mae will reimburse its mortgage lenders for the interest shortfall for Reservists and National Guard personnel called to active duty anywhere-domestically or abroad-saving lenders an estimated $6 million annually in lost interest.

In honor of our nation's military, Ginnie Mae has made this policy change retroactive to September 11, 2001.

"This change will allow issuers to be reimbursed for more of the interest shortfalls that they have traditionally had to absorb," explained Martinez. "Just as important, Ginnie Mae will be helping the issuer community support our men and women in uniform -- whether they are here at home or abroad."

The Soldiers' and Sailors' Civil Relief Act of 1940 requires all lenders to limit the rate of interest paid on mortgage debt to 6 percent for any military personnel called to active duty. When a homeowner is called to active military duty the lender must absorb the difference between 6 percent and the borrower's contract interest rate.

Learn more about how HUD supports America's military men and women and has worked to help America Recover following the September 11, 2001 terrorist attacks.