1. The nickname for the Government National Mortgage Association (GNMA). A government-owned corporation that acquires, packages, and resells mortgages in the form of mortgage-backed securities. 2. A mortgage bond, or mortgage-backed security that is issued and guaranteed by GNMA and is backed by the Federal Housing Administration (FHA), Department of Veterans Affairs (VA) and Farmers Home Administration (FHA). Mortgage bonds function like other bonds.