government-sponsored enterprises

Government-sponsored enterprises (GSEs) are financial institutions created by the government to enhance the flow of credit in specific sectors, primarily housing and agriculture. They aim to make borrowing easier and more affordable for individuals and businesses by supporting mortgage lending and rural development. While they operate like private companies, GSEs receive some government backing, which helps them offer lower interest rates. Examples include Fannie Mae and Freddie Mac, which are key players in the housing market, ensuring that people can access home loans more readily.