government-sponsored enterprise


Also found in: Medical, Encyclopedia, Wikipedia.

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 ?
FHA-eligible mortgages that are not insured and that are sold either to a government-sponsored enterprise or to a nonaffiliated depository institution are more likely to be mortgages of higher-income or white or Asian borrowers.
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.
They included anti-abusive lending, government-sponsored enterprise (GSE) oversight reform, terrorism insurance, Federal Housing Administration (FHA) empowerment and the Real Estate Settlement Procedures Act (RESPA) rule.
5 billion, FHLBank Pittsburgh, a government-sponsored enterprise created by Congress in 1932, serves approximately 335 members across its three-state district.
A mortgage real estate investment trust, Ellington Residential specialises in acquiring, investing in and managing residential mortgage- and real estate-related assets, with a primary focus on residential mortgage-backed securities, which principal and interest payments are guaranteed by a US government agency or a US government-sponsored enterprise.
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.
Under his leadership, Sallie Mae became the first government-sponsored enterprise to relinquish its federal charter in return for full independence.
The government-sponsored enterprise has returned its charter to Congress and all remaining debt has been defeased.
A real estate investment trust, Ellington Residential Mortgage REIT acquires, invests in and manages residential mortgage- and real estate-related assets, with a primary focus on residential mortgage-backed securities guaranteed by a US government agency or a US government-sponsored enterprise.
A real estate investment trust, Ellington acquires, invests in and manages residential mortgage and real estate-related assets and mainly focuses on residential mortgage-backed securities guaranteed by a US government agency or a US government-sponsored enterprise.
The FHLBanks are a government-sponsored enterprise (GSE) created in 1932 to ensure affordable housing finance for all Americans.
A real estate investment trust, the company acquires, invests in and manages residential mortgage and real estate-related assets, mainly focused on residential mortgage-backed securities for which the principal and interest payments are guaranteed by a US government agency or a US government-sponsored enterprise.

Full browser ?