Definition of tandem loan

subsidized mortgage program under which the purchases mortgages above fair market value, and resells them through the Federal National Mortgage Association (Fannie Mae). The program provides financial assistance to developers of nonprofit public housing projects. Ginnie Mae pays the difference-the discount between the price paid by Fannie Mae and the price at which it buys the mortgages, using its credit rating to guarantee the discount, which public housing authorities could not otherwise afford, and in turn accepts a limited loss on the deal.