There are three major government-sponsored enterprises (GSEs) in the United States that are known to contribute to the U.S. Treasury:
It's worth noting that the amount each GSE contributes to the Treasury can vary depending on a variety of factors, including their financial performance, the terms of their charter, and any agreements with the government. Additionally, not all GSEs contribute to the Treasury, as some are not designed to operate in a way that generates revenue.
- Federal National Mortgage Association (Fannie Mae)
- Federal Home Loan Mortgage Corporation (Freddie Mac)
- Federal Home Loan Banks (FHLBs)
Federal National Mortgage Association (Fannie Mae)
The Federal National Mortgage Association (Fannie Mae) is a government-sponsored enterprise (GSE) that was established in 1938 to help expand the secondary mortgage market in the United States. Fannie Mae is a publicly traded company that operates under a federal charter, which requires it to support the availability of affordable housing by providing liquidity to the mortgage market. Fannie Mae purchases mortgages from banks and other lenders, and then packages them into securities that are sold to investors on the secondary market. This helps to ensure that banks have the funds available to make more loans to homebuyers.
During the financial crisis of 2008, Fannie Mae was placed under conservatorship of the Federal Housing Finance Agency (FHFA) after suffering significant losses from the collapse of the housing market. As part of the conservatorship, the U.S. government provided Fannie Mae with financial assistance in the form of loans and other forms of support. Since then, Fannie Mae has been required to make payments to the Treasury to repay the funds it received from the government during the crisis.
Federal Home Loan Mortgage Corporation (Freddie Mac)
The Federal Home Loan Mortgage Corporation (Freddie Mac) is another government-sponsored enterprise (GSE) that was established in 1970 to help expand the secondary mortgage market in the United States. Like Fannie Mae, Freddie Mac is a publicly traded company that operates under a federal charter, which requires it to support the availability of affordable housing by providing liquidity to the mortgage market. Freddie Mac purchases mortgages from banks and other lenders, and then packages them into securities that are sold to investors on the secondary market.
During the financial crisis of 2008, Freddie Mac was also placed under conservatorship of the Federal Housing Finance Agency (FHFA) after suffering significant losses from the collapse of the housing market. As with Fannie Mae, the U.S. government provided Freddie Mac with financial assistance in the form of loans and other forms of support. Since then, Freddie Mac has been required to make payments to the Treasury to repay the funds it received from the government during the crisis.
Federal Home Loan Banks (FHLBs)
The Federal Home Loan Banks (FHLBs) are a group of 11 government-sponsored enterprises (GSEs) that were established in 1932 to help support the housing finance system in the United States. The FHLBs operate as a network of regional banks that provide liquidity to member banks, thrifts, and credit unions to support mortgage lending and affordable housing finance. The FHLBs also provide funding for community development projects and other initiatives that support economic development in their regions.
11 Federal Home Loan Banks (FHLBs), which are government-sponsored enterprises (GSEs) in the United States:
Each of these banks operates as a separate entity, but they are all part of a network of regional banks that provide liquidity to member banks, thrifts, and credit unions to support mortgage lending and affordable housing finance. The FHLBs also provide funding for community development projects and other initiatives that support economic development in their regions.
- Federal Home Loan Bank of Atlanta
- Federal Home Loan Bank of Boston
- Federal Home Loan Bank of Chicago
- Federal Home Loan Bank of Cincinnati
- Federal Home Loan Bank of Dallas
- Federal Home Loan Bank of Des Moines
- Federal Home Loan Bank of Indianapolis
- Federal Home Loan Bank of New York
- Federal Home Loan Bank of Pittsburgh
- Federal Home Loan Bank of San Francisco
- Federal Home Loan Bank of Topeka
Unlike Fannie Mae and Freddie Mac, the FHLBs were not placed under conservatorship during the financial crisis of 2008. However, the FHLBs are required to make regular contributions to the U.S. Treasury as part of their charter obligations. The amount each FHLB contributes to the Treasury varies depending on a variety of factors, including their financial performance and any agreements with the government.
Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (FHLBs) are three of the most well-known government-sponsored enterprises (GSEs) in the United States. While they each have their own unique roles and responsibilities, they are all designed to help support the availability of affordable housing by providing liquidity to the mortgage market. Fannie Mae and Freddie Mac were placed under conservatorship during the financial crisis of 2008, while the FHLBs were not. However, all three GSEs are required to
