It may surprise you to learn, or remember, that Ginnie Mae pools are backed by FHA/VA loans. Ginnie Mae securities, compared to those of its cousins Fannie Mae and Freddie Mac, normally have a slightly higher price and a lower yield. This is due to the superior liquidity and credit quality of Ginnie Mae securities. Regardless of the product, it's important to remember that FHA/VA loans will prepay faster than conventionals, particularly in flat or rising rate environments. In the past few months ICBA Securities has been able to find Ginnie Mae pools backed exclusively by FHASecure loans. These pools have a number of positive characteristics for bank portfolios, including that they are less expensive than generic Ginnie Mae pools by as much as a half point. Ginnie Mae pools in general -- and those backed by FHASecure in particular -- should outperform in any rate scenario.