In the past ninety plus years, the U.S. Congress has moved to create a series of Government Sponsored Enterprises (GSEs) focused on providing financial services to assist homeowners and farmers. Starting with farming economic issues proceeding the First World War, the dramatic impact of the great Depression during the 1930’s and the rapid expansion of suburban America, Congress has sought vehicles to help secure and expand homeownership and improve financing for rural farmers, once seen as the economic backbone of the nation. The goal of these institutions was to reduce interest rates for these specific borrowing groups and provide a measure of economic stability. With the decrease in the number of family owned farms and dramatic changes in turn of the century rural life, the mortgage borrowing services have become by far the largest portion of the GSEs operations.
The GSEs have created a secondary market for farm and housing loans through a securitization system, which allows primary market debt issues to be bought and traded by investors. Through the securitization system demand for the debt securities drives up their trading price, which in tern lowers their interest rates. The result is the secondary market in mortgage loans gives household borrowers lower fixed rate loans, removes credit risk from banks and provides securitized securities for investors.
The structure of the GSEs are varied with some owned by the Federal government; some are publicly owned; and some are owned by the corporations that use their services. Their lenders grant them extraordinary low rates, and the buyers of their securities grant them extraordinary high prices, as the implicit involvement of the Federal government gives them a sense of financial security.
- Federal Home Loan Mortgage Corporation (Freddie Mac) (1970)
- Federal National Mortgage Association (Fannie Mae) (1938)
- Government National Mortgage Association (Ginnie Mae) (1968)
- Federal Farm Credit Banks (1916)
- Federal Agricultural Mortgage Corporation (Farmer Mac) (1988)
- Federal Home Loan Bank Section (1932)
Profiles of Government Sponsored Enterprises (GSEs)
Fannie Mae Releases Monthly Summary for May
By:Fannie MaeJune 25, 2007
The monthly summary report contains information about our monthly and year-to-date activity for portfolio commitments, portfolio purchases, sales and liquidations, guaranteed securities and mortgage loans, and delinquency rates.
[more]Fannie Mae (Federal National Mortgage Association)
October 26, 2006
In 1938, the Federal government established Fannie Mae to expand the flow of mortgage money by creating a secondary market. Fannie Mae was authorized to buy Federal Housing Administration (FHA)-insured mortgages, thereby...
[more]Daniel H. Mudd, President and Chief Executive Officer of Fannie Mae
October 26, 2006
Daniel H. Mudd is President and Chief Executive Officer of Fannie Mae and a Director of the company. Previously, Mudd served as Chief Operating Officer, responsible for management of single-family and multifamily lender...
[more]Freddie Mac (Federal Home Loan Mortgage Corporation)
October 26, 2006
Congress chartered Freddie Mac in 1970 as a private company to provide a continuous and low-cost source of capital to finance America's housing. Federal oversight of Freddie Mac is focused on two main areas – its housing mission,...
[more]Richard F. Syron, Chairman and Chief Executive Officer of Freddie Mac
October 26, 2006
Richard F. Syron is chairman and chief executive officer of Freddie Mac, a New York Stock Exchange traded company and the second largest source of mortgage financing in the United States. Syron joined Freddie Mac in December...
[more]Office of Federal Housing Enterprise Oversight (OFHEO)
October 26, 2006
The Office of Federal Housing Enterprise Oversight (OFHEO) was established as an independent entity within the Department of Housing and Urban Development by the Federal Housing Enterprises Financial Safety and Soundness Act of...
[more]James B. Lockhart III, Director of the Office of Federal Housing Enterprise Oversight (OFHEO)
October 26, 2006
James B. Lockhart III is the Director of the Office of Federal Housing Enterprise Oversight (OFHEO). He was nominated by President George W. Bush to become the Director of OFHEO, and was confirmed by the U.S. Senate on June 15,...
[more]Ginnie Mae (Government National Mortgage Association)
October 26, 2006
In 1934, during the depths of the Depression, Congress passed the National Housing Act to strengthen a deeply troubled housing market. An important element of this legislation was to make mortgage funds available to more...
[more]Robert M. Couch, President, Ginnie Mae (Government National Mortgage Association)
October 26, 2006
Robert M. Couch was confirmed by the United States Senate on June 15, 2006, as President of the Government National Mortgage Association. Couch administers Ginnie Mae's $404 billion mortgaged-backed securities program and $125...
[more]Federal Farm Credit Bank System (Corporation)
October 26, 2006
The Farm Credit System is a nationwide network of borrower-owned lending institutions and affiliated service entities that lends to agricultural and rural America. The System is the oldest Government-sponsored enterprise (GSE)...
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Reports Issued By Government Sponsored Enterprises (GSEs)
It’s an eyecatching, holy-vampire-squid headline: Freddie Mac Bets Against American Homeowners! And the story details how our national mortgage company has invested heavily in securities that would lose value if homeowners...
January 19, 2012 By:Freddie MacMCLEAN, Va. Freddie Mac (FMCC) has released the results of its 28th Annual Adjustable-Rate Mortgage (ARM) Survey of prime loan offerings, which was conducted January 3 to January 5 of this year. The results show ARM...
[more] January 11, 2012 By:NY TimesWASHINGTON (AP) — The executive who was appointed to lead the mortgage giant Fannie Mae in 2009 after the federal government seized it plans to step down as its chief executive.
January 10, 2012 By:Freddied MacMCLEAN, Va .- Freddie Mac later this month will launch a free database tool for investors and analysts to monitor its Multifamily K-Deal mortgage-backed securities performance and credit quality. The Multifamily Securities...
[more] December 29, 2011 By:BloombergWashington lawmakers, who began 2011 with sweeping plans to shrink the U.S. government’s role in mortgage finance, are heading into 2012 after enacting policies that expand it. An 11th-hour payroll tax cut extension signed...
December 21, 2011 By:LA TimesCalifornia Atty. Gen. Kamala D. Harris is suing Fannie Mae and Freddie Mac to force the mortgage giants to answer questions about their role in California's housing meltdown. In two suits filed Tuesday in San Francisco County...
December 19, 2011 By:Christian Science MonitorSubprime scandal: ex-Fannie Mae, Freddie Mac execs accused of fraud. Those charged include the men who were chief executives of these government-chartered mortgage enterprises. Daniel Mudd headed Fannie Mae and Richard Syron led...
December 16, 2011 By:Federal Housing Finance AgencyWashington, DC – The Federal Housing Finance Agency (FHFA) said it will extend implementation dates for a key component of the Uniform Mortgage Data Program (UMDP) announced in May 2010, known as the Uniform Loan Delivery Dataset...
[more] December 15, 2011 By:Freddie MacMCLEAN, Va., -- Freddie Mac (OTC: FMCC) released today its U.S. Economic and Housing Market Outlook for December providing five projections for the coming year.
[more] December 2, 2011 By:CNN MoneyHappy holidays struggling homeowners! Fannie Mae, Freddie Mac and several large mortgage lenders have pledged not to foreclose on delinquent borrowers during the Christmas season. For homeowners with loans through Fannie Mae...
