Home |
What are Government Sponsored Enterprises in the mortgage market?In: Stock Market
[Edit categories]
|
GSEs in the Mortgage Markets
Government sponsored enterprises (GSEs) in the mortgage market are the Federal Home Loan Mortgage Corporation ("Freddie Mac"), the Federal National Mortgage Association ("Fannie Mae") and the Government National Mortgage Association ("Ginnie Mae").
The GSEs facilitate liquidity in the mortgage markets by purchasing conforming mortgages from lenders, securitizing them, and onselling them into the secondary financial markets.
Freddie Mac and Fannie Mae are both privately owned corporations, with an implicit government guarantee. This means that if they become insolvent, the US Government is very likely to step in. Freddie Mac and Fannie Mae hold almost 20% of the mortgages in the market.
Ginnie Mae is a wholly owned government enterprise, established in the late 1960's to facilitate home ownership by low to moderate income families.
First answer by Megan. Last edit by Megan. Contributor trust: 203 [recommend contributor]. Question popularity: 36 [recommend question]
Answers.com > Wiki Answers > Categories > Business and Finance > Investing and Financial Markets > Stock Market > What are Government Sponsored Enterprises in the mortgage market?
Our contributors said this page should be displayed for the questions below. (Where do these come from ) |
| If any of these are not a genuine rephrasing of the question, please help out and edit these alternates. |
