Government Sponsored Enterprise

(redirected from Government-Sponsored Entities)

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.
References in periodicals archive ?
Governmental institutions, local authorities and government-sponsored entities that provide support services to MSMEs and/or that are responsible for policy and regulatory frameworks on SCP, industry and/or enterprises.
Berkadia originates commercial mortgage loans for government-sponsored entities (GSEs), third parties (such as life companies, private investors and institutional banks), CMBS transactions, as well as for its own portfolio.
In other words, a system whereby government-sponsored entities coexist with the private sector.
Our many long-term clients, and first-time borrowers, benefit from our established relationships with property owners, commercial real estate developers, institutional investors, and government-sponsored entities," added Flynn.
An investment firm, Arlington Asset acquires mortgage-related and other assets on a leveraged basis, mainly residential mortgage-backed securities (MBS) that are issued by the US (US) government agency, or guaranteed as to principal and interest by US government agencies, or US government-sponsored entities. It also acquires MBS issued by private organizations.
Barings Multifamily Capital originates and services multifamily, senior housing and healthcare facility loans by utilising programmes overseen by governmental agencies and government-sponsored entities.
Treasury and the Federal Housing Finance Agency, HARP focused on assisting millions of "underwater" American households whose mortgages, issued with help of government-sponsored entities, exceeded the value of their homes, particularly those with especially high loan-to-value ratios.
Arlington Asset Investment said it expects to use the net proceeds of this offering to acquire certain of the company's target assets, including residential mortgage-backed securities issued by US government agencies or guaranteed as to principal and interest by US government agencies or US government-sponsored entities and MBS issued by private organizations.
While discussions on government-sponsored entities (GSEs), specifically, Fannie Mae and Freddie Mac, usually focus on their involvement in the single-family secondary mortgage market, their role in the multifamily secondary market may seem overlooked, since multifamily loans have performed relatively well, even throughout the economic downturn.
government, its agencies or instrumentalities, including government-sponsored entities.
On a relative basis, this will artificially raise the cost of borrowing for corporations (whose debt is in the floating NAV 'institutional prime' space), and artificially subsidize borrowing by the Treasury and these government-sponsored entities (Fannie Mae, Freddie Mac and the Federal Home Loan Banks) whose debt is in the stable NAV 'institutional government' space." She also said, "The liquidity 'gates and fees' option is potentially worse than existing law as it retains the existing structural weakness of the stable NAV, but adds increased investor uncertainty about potential gating and fees."
As long as the two government-sponsored entities are in conservatorship or receivership and have capital support from the U.S.

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