Which of the following mortgage backed securities programs is guaranteed by the full faith and credit of the U.S. government?

The program guaranteed by the full faith and credit of the U.S. government is indeed the Government National Mortgage Association (GNMA), commonly referred to as Ginnie Mae. This distinction is significant because Ginnie Mae specifically issues mortgage-backed securities that are backed by the U.S. government, meaning that investors have the assurance of repayment even in the event of borrower default. This guarantee enhances the attractiveness of Ginnie Mae securities as a safe investment choice.

Ginnie Mae's role is to ensure liquidity in the mortgage market by providing a stable source of funding for various housing programs, particularly those aimed at supporting low-income borrowers and first-time homebuyers. This governmental backing means that the securities carry minimal credit risk compared to those not directly guaranteed by the government.

In contrast, the other programs mentioned, such as the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac) and the Federal National Mortgage Association (FNMA, or Fannie Mae), have different types of backing. While these entities are government-sponsored enterprises (GSEs) that play a vital role in the secondary mortgage market, they do not offer the same level of direct governmental guarantee as Ginnie Mae. As such, while they are somewhat supported by government backing, it does not equ