Agency RMBS are backed or issued by entities such as Government National
Mortgage Association (GNMA or Ginnie Mae), Federal Home Loan Mortgage
Corporation (FHLMC or Freddie Mac), and Federal National Mortgage
Association (FNMA or Fannie Mae). Ginnie Mae guarantees investors the timely
payment of principal and interest on loans originated through the Federal
Housing Association (FHA), the Department of Veterans Affairs (VA), the Rural
Housing Service (RHS) and Public and Indian Housing (PIH). Freddie Mac and
Fannie Mae purchase mortgages forming pools and issue RMBS that carry a
guarantee of timely payment of principal and interest to the investor. Unlike
GNMA, their obligation is not backed by the full faith and credit of the U.S.
government.9