TeachMeFinance.com - explain government-sponsored enterprises (GSEs)
government-sponsored enterprises (GSEs) -- Financial institutions
established and chartered by the federal government, as privately owned
and operated entities, to facilitate the flow of funds to selected lending
markets, such as those for residential mortgages and agricultural credit.
Although they are classified as private entities for purposes of the federal
budget (and thus their transactions are not included in the budget totals),
GSEs retain a relationship with the federal government that confers certain
advantages on them that would not be available to similar private entities
that were not federally sponsored. Major examples of GSEs are Fannie Mae
and the Federal Home Loan Bank System.
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