Government-Sponsored Enterprises (GSEs) are financial services corporations created by the government to enhance the flow of credit in specific sectors, primarily housing and agriculture. They aim to promote access to affordable financing for individuals and businesses by providing liquidity to the mortgage market and supporting farmers. Examples of GSEs include Fannie Mae and Freddie Mac.
These entities operate with a unique structure that combines public purpose with private profit. While they are not fully government-owned, they receive certain benefits, such as access to lower borrowing costs, which helps them fulfill their mission of supporting economic stability and growth in their targeted areas.