The two GSEs play a pivotal part in both mortgage availability and affordability. What the GSEs doĬlearly, if the government spent billions on bailing Fannie and Freddie out, they must be pretty important - and they are. Treasury purchasing billions in stocks of each company. Both Fannie Mae and Freddie Mac were also bailed out by the federal government after the housing crisis in 2008, with the U.S. For example, they do not pay state or federal taxes (just taxes on real estate). They enjoy certain perks with this status. It’s a little confusing, but it basically means that though both are private, for-profit companies with their own shareholders. Fannie Mae, or the Federal National Mortgage Association (FNMA), and Freddie Mac, the Federal Home Loan Mortgage Corporation (FHLMC), are both government-sponsored entities (GSEs).
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