Government-sponsored enterprise

government sponsored enterpriseGSEGSEsgovernment-sponsoredGovernment-Sponsored EnterprisesagencyEnterprise Authoritiesenterprisesgovernment agencyGovernment Sponsored Enterprises
A government-sponsored enterprise (GSE) is a type of financial services corporation created by the United States Congress.wikipedia
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Financial services

Finance and Insurancefinancial servicefinancial sector
A government-sponsored enterprise (GSE) is a type of financial services corporation created by the United States Congress.
Financial services are the economic services provided by the finance industry, which encompasses a broad range of businesses that manage money, including credit unions, banks, credit-card companies, insurance companies, accountancy companies, consumer-finance companies, stock brokerages, investment funds, individual managers and some government-sponsored enterprises.

Federal Home Loan Banks

Federal Home Loan BankFederal Home Loan Bank of San FranciscoFederal Home Loan Bank System
Congress created the first GSE in 1916 with the creation of the Farm Credit System; it initiated GSEs in the home finance segment of the economy with the creation of the Federal Home Loan Banks in 1932; and it targeted education when it chartered Sallie Mae in 1972 (although Congress allowed Sallie Mae to relinquish its government sponsorship and become a fully private institution via legislation in 1995).
The Federal Home Loan Banks (FHLBanks, or FHLBank System) are 11 U.S. government-sponsored banks that provide reliable liquidity to member financial institutions (not individuals) to support housing finance and community investment.

Student loan

student loansloanseducation loan
The desired effect of the GSEs is to enhance the availability and reduce the cost of credit to the targeted borrowing sectors primarily by reducing the risk of capital losses to investors: agriculture, home finance and education.
In the United States, there are two types of student loans: federal loans sponsored by the federal government and private student loans, which broadly includes state-affiliated nonprofits and institutional loans provided by schools.

Fannie Mae

Federal National Mortgage AssociationFNMAFannie Mae Foundation
Well known GSEs are the Federal National Mortgage Association, or Fannie Mae, and the Federal Home Loan Mortgage Corporation, or Freddie Mac.
The Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, is a United States government-sponsored enterprise (GSE) and, since 1968, a publicly traded company.

Freddie Mac

Federal Home Loan Mortgage CorporationFHLMCFreddie
Well known GSEs are the Federal National Mortgage Association, or Fannie Mae, and the Federal Home Loan Mortgage Corporation, or Freddie Mac.
The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.

Subprime mortgage crisis

2007 subprime mortgage financial crisissubprime crisissub-prime mortgage crisis
This implicit guarantee was tested by the subprime mortgage crisis, which caused the U.S. government to bail out and put into conservatorship Fannie Mae and Freddie Mac in September, 2008.
Lending standards deteriorated particularly between 2004 and 2007, as the government-sponsored enterprise (GSE) mortgage market share (i.e. the share of Fannie Mae and Freddie Mac, which specialized in conventional, conforming, non-subprime mortgages) declined and private securitizers share grew, rising to more than half of mortgage securitizations.

Farm Credit System

Federal Land BankFederal Intermediate Credit BankFarm credit
Congress created the first GSE in 1916 with the creation of the Farm Credit System; it initiated GSEs in the home finance segment of the economy with the creation of the Federal Home Loan Banks in 1932; and it targeted education when it chartered Sallie Mae in 1972 (although Congress allowed Sallie Mae to relinquish its government sponsorship and become a fully private institution via legislation in 1995).
Congress established the Farm Credit System as a government-sponsored enterprise (GSE) when it enacted the Federal Farm Loan Act of 1916.

Bibliography of Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac: A Bibliography
For a comprehensive list of articles discussing Fannie Mae, Freddie Mac, and Government-Sponsored Enterprises, see Bibliography of Fannie Mae and Freddie Mac.
This is an unannotated bibliography of writings about Fannie Mae and Freddie Mac as well as some material that covers other government sponsored enterprises such as the Federal Home Loan Bank System.

Financing Corporation

The Financing Corporation
The Financing Corporation (FICO) is a mixed-ownership United States government-sponsored enterprise that assumed all the assets and liabilities of the insolvent Federal Savings and Loan Insurance Corporation (FSLIC) and operated as a financing vehicle for the FSLIC Resolution Fund after the former was abolished by the Financial Institutions Reform, Recovery, and Enforcement Act of 1989 (FIRREA).

Sallie Mae

SLM CorporationStudent Loan Marketing AssociationSLM Corp
Congress created the first GSE in 1916 with the creation of the Farm Credit System; it initiated GSEs in the home finance segment of the economy with the creation of the Federal Home Loan Banks in 1932; and it targeted education when it chartered Sallie Mae in 1972 (although Congress allowed Sallie Mae to relinquish its government sponsorship and become a fully private institution via legislation in 1995).
The Student Loan Marketing Association was originally created in 1972 as a government-sponsored enterprise (GSE) and began privatizing its operations in 1997, a process it completed at the end of 2004 when Congress terminated its federal charter, ending its ties to the government.

Resolution Funding Corporation

The Resolution Funding Corporation (REFCORP) is a government-sponsored enterprise that provides funds to the Resolution Trust Corporation, which was established to finance the bailout of savings and loan associations in the wake of the savings and loan crisis of the 1980s in the United States.

Government National Mortgage Association

Ginnie MaeGNMAGovernment National Mortgage Association (Ginnie Mae)
Fannie Mae and Freddie Mac, on the other hand, are "government-sponsored enterprises" (GSEs), which are federally chartered corporations, but still privately owned by shareholders.

United States Congress

CongressU.S. CongressCongressional
A government-sponsored enterprise (GSE) is a type of financial services corporation created by the United States Congress.

Credit

consumer creditconsumer lendingconsumer loan
Their intended function is to enhance the flow of credit to targeted sectors of the economy, to make those segments of the capital market more efficient and transparent, and to reduce the risk to investors and other suppliers of capital.

Capital market

capital marketssecurities marketsecurities markets
Their intended function is to enhance the flow of credit to targeted sectors of the economy, to make those segments of the capital market more efficient and transparent, and to reduce the risk to investors and other suppliers of capital.

Agriculture

farmingagriculturalAgriculturist
The desired effect of the GSEs is to enhance the availability and reduce the cost of credit to the targeted borrowing sectors primarily by reducing the risk of capital losses to investors: agriculture, home finance and education.

Education

teachingeducationaleducationist
Congress created the first GSE in 1916 with the creation of the Farm Credit System; it initiated GSEs in the home finance segment of the economy with the creation of the Federal Home Loan Banks in 1932; and it targeted education when it chartered Sallie Mae in 1972 (although Congress allowed Sallie Mae to relinquish its government sponsorship and become a fully private institution via legislation in 1995).

Mortgage loan

mortgagemortgagesmortgage loans
The desired effect of the GSEs is to enhance the availability and reduce the cost of credit to the targeted borrowing sectors primarily by reducing the risk of capital losses to investors: agriculture, home finance and education.

Secondary market

aftermarketsecondary tradingmarket for resale
In addition, the GSEs created a secondary market in loans through guarantees, bonding and securitization.

Securitization

securitisationsecuritizedsecuritizing
In addition, the GSEs created a secondary market in loans through guarantees, bonding and securitization.

Primary market

bring a security issue to the marketoriginal issuesprimary
This has allowed primary market debt issuers to increase loan volume and decrease the risks associated with individual loans.

Conservatorship

conservatorConservateeconservation
This implicit guarantee was tested by the subprime mortgage crisis, which caused the U.S. government to bail out and put into conservatorship Fannie Mae and Freddie Mac in September, 2008.