What does it mean to be “backed by full faith and credit of the US Gov’t”?
The terminology is weird.
When referring to GNMA, GNMA is directly backed by the Gov’t.
GNMA is backed by full faith and credit of the US Gov’t.
How is that different from unsecured loans?
I’ve always thought this was weird too, but “backed by full faith and credit of X” is just a set phrase.
It does just mean that it is an unsecured loan not backed by any collateral. Since the federal government essentially has unlimited money, there’s basically no risk of default.
“Backed by full faith and credit” sounds better than “We’ll pay you back, I promise” 
ok, that does sounds better!
I thought “backed by full faith and credit” is something that is indirect.