GNMA stands for which entity?

GNMA stands for which entity?

• A. Government National Mortgage Association
• B. Government National Mortgage Appraisal
• C. Government National Mortgage Allocation
• D. Government National Mortgage Agreement

Answer: (A)

The key idea is recognizing the acronym. GNMA stands for Government National Mortgage Association. It’s a government-owned corporation within HUD that guarantees timely payment of principal and interest on mortgage-backed securities backed by federally insured or guaranteed loans (such as FHA, VA, and RHS loans). This guarantee helps attract investors and provides liquidity to the mortgage market, since investors know the payments are backed by the U.S. government. The other options don’t match the actual name, so they don’t reflect what GNMA stands for.

The key idea is recognizing the acronym. GNMA stands for Government National Mortgage Association. It’s a government-owned corporation within HUD that guarantees timely payment of principal and interest on mortgage-backed securities backed by federally insured or guaranteed loans (such as FHA, VA, and RHS loans). This guarantee helps attract investors and provides liquidity to the mortgage market, since investors know the payments are backed by the U.S. government. The other options don’t match the actual name, so they don’t reflect what GNMA stands for.