government-sponsored enterprise

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Government Sponsored Enterprise

A privately held or publicly traded company created by the U.S. Government for some purpose thought to benefit the American economy. For example, Freddie Mac was originally a GSE created to encourage homeownership among middle class and working class Americans. Because it is "sponsored" but not owned by the government, GSE stocks carry higher risk than, say, Treasury securities, which are backed by the full faith and credit of the United States. However, GSEs have an implicit guarantee that the government will not allow them to fail. Indeed, when Fannie Mae and Freddie Mac collapsed in 2008 they almost instantly received federal assistance.

government-sponsored enterprise (GSE)

One of a group of financial services organizations created by the government. Some are owned by the federal government, some are owned by private individuals,and some are owned by corporations that use their services.All of them enjoy exceptionally low loan rates and exceptionally high sales prices for their bonds and other debt instruments because of the implicit backing of the U.S.government.They include

• Federal Home Loan Banks. Owned by over 8,000 community financial institutions that use the services of the FHLBs.
• Federal Home Loan Mortgage Corporation (Freddie Mac). A stockholder-owned, publicly traded corporation listed on the New York Stock Exchange as FRE.
• Federal National Mortgage Association (Fannie Mae). A stockholder-owned, publicly traded corporation listed on the New York Stock Exchange as FNM.
• Government National Mortgage Association (Ginnie Mae). A wholly owned (by the government) corporation within the Department of Housing and Urban Development.
• Farm Credit Bank. Federally chartered and borrower-owned financial institutions.
• Federal Agricultural Mortgage Association (Farmer Mac). A stockholder-owned, publicly traded corporation listed on the New York Stock Exchange as AGM.
• Student Loan Marketing Corporation (Sallie Mae). A stockholder-owned, publicly traded corporation listed on the New York Stock Exchange as SLM.

References in periodicals archive ?
Three government-sponsored enterprises (GSEs) dominate secondary market activity - Fannie Mae, Freddie Mac, and the Government National Mortgage Association (Ginnie Mae).
Celebrating its 30th anniversary this year, the company opened its doors in May 1973 as a government-sponsored enterprise (GSE) called the Student Loan Marketing Association, and began the privatization process in 1997.
The Department of Housing and Urban Development announced it will undertake a review of Fannie Mae and Freddie Mac's debt and equity investments to ensure that the government-sponsored enterprises (GSEs) are in compliance with their congressionally mandated charter.
other than Sallie Mae) is a government-sponsored enterprise or an instrumentality of the United States.
BAKER (R-Louisiana), chairman of the House Financial Services Subcommittee on Capital Markets, announced his agenda for the subcommittee in the current congressional session, spotlighting three issues for action: merchant banking, Securities and Exchange Commission (SEC) fee reduction and government-sponsored enterprise (GSE) regulatory reform.
The FHLBanks are a government-sponsored enterprise (GSE) created in 1932 to ensure affordable housing finance for all Americans.
E[acute accent]NAR President Al Mansell urged Congress to revise provisions in recent government-sponsored enterprise (GSE) reform bills that would delay program and product approval, create a rigid line of distinction between mortgage origination and secondary mortgage activities, and establish statutory portfolio limits.
The Federal Housing Finance Board was established in 1989 by FIRREA and was given supervisory authority and oversight for the Federal Home Loan Bank System, a Government-Sponsored Enterprise (GSE).
Now, after well more than a decade of mounting success, bank management and the board of directors decided that technology and events in this field were moving fast -- too fast for the response time of a government-sponsored enterprise.
The firm is a leading originator of government-sponsored enterprise (GSE) and government-insured multifamily loans with $3.
The $30 billion allocation from each of the two government-sponsored enterprises (GSEs) includes authority to exceed the cap for loans on affordable housing properties and for assets with a sustainable component.
The bill would prohibit the Federal Housing Finance Agency (FHFA) or other regulators from setting arbitrary limitations on the volume or scope of multifamily housing mortgages backed by Government-Sponsored Enterprises (GSEs) like Fannie Mae and Freddie Mac.

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