GSE (Government-Sponsored Enterprise)

Government-Sponsored Enterprises (GSEs) are financial institutions created by the government to support specific sectors of the economy, primarily housing and agriculture. They help make loans more accessible and affordable by providing guarantees or purchasing loans from lenders, which in turn encourages lending. Examples include Fannie Mae and Freddie Mac, which focus on the housing market. While GSEs operate with some government backing, they are privately owned and aim to promote public policy goals, such as homeownership and rural development, without direct taxpayer funding.