Privately owned, publicly chartered entities (such as the Student Loan Marketing Association) created by Congress to reduce the cost of capital for certain borrowing sectors of the economy including farmers, homeowners, and students.
Federally chartered government-sponsored enterprises (GSEs) are shareholder-owned corporations, not federal agencies. Although GSEs, such as Fannie Mae and Freddie Mac, were created to fulfill a public purpose, the mortgage-backed bonds they issue are not insured by the government or backed by its full faith and credit.
Entities established by Congress to perform specified public-interest tasks. The two GSEs applicable to multifamily real estate financing are Fannie Mae and Freddie Mac. Both are private shareholder-owned companies operating under congressional charters that direct them to increase the availability and affordability of homeownership for low-, moderate-, and middle-income Americans.