what is a government sponsored enterprise gse 
a government sponsored enterprise gse is a quasi governmental entity established to enhance the flow of credit to specific sectors of the u s economy created by acts of congress these agencies although they are privately held provide public financial services gses help to facilitate borrowing for a variety of individuals including students farmers and homeowners for example the federal home loan mortgage corp freddie mac was originally created as a gse in the housing sector it was intended to encourage homeownership among the middle and working classes freddie mac is considered a mortgage gse 1another example of mortgage gses is the federal national mortgage association fannie mae this entity was introduced to improve the flow of credit in the housing market while also reducing the cost of that credit 