government-sponsored enterprise

A government-sponsored enterprise (GSE) is a financial organization created by the government to support specific sectors, like housing or agriculture, by providing funding and facilitating access to credit. While GSEs operate independently and are not direct government agencies, they benefit from government support or implicit backing, which helps them offer better loan terms and encourage economic activity. Examples include Fannie Mae and Freddie Mac, which help make home loans more accessible and affordable for many Americans. They play a key role in stabilizing markets, but their activities are influenced by government policies and oversight.