Fannie Mae, Freddie Mac, and the Federal Home Loan Banks (FHLBs) are government-sponsored enterprises (GSEs) that help bring capital to the housing markets. Their regulator is the Federal Housing Finance Agency (FHFA).


HFAs and the Housing GSEs
Fannie Mae and Freddie Mac purchase and securitize loans from HFAs and other lenders who then use the proceeds to finance more mortgages. The FHLBs provide advances and other financial products to support their members’ affordable housing activities. The GSEs are critical in providing liquidity, stability and affordability to the mortgage market, particularly for long-term, fixed-rate mortgages. Until recent years, Fannie Mae and Freddie Mac were large purchasers of Housing Bonds and Housing Credits.

GSE Reform

Recently, Congress has begun to consider comprehensive reform legislation, particularly Fannie Mae and Freddie Mac. NCSHA supports a strong, healthy GSE system in order to ensure stability, liquidity, and affordability in the home mortgage market. NCSHA's position paper on GSE reform calls for a for a system with an explicit goverment guarantee, robust affordable housing goals, and a clear commitment to partnering with HFAs.

Useful Links: Federal Housing Finance Agency, Fannie Mae, Freddie Mac, U.S. Federal Home Loan Bank System

NCSHA Blog Posts

  • August 26, 2016

    The Federal Housing Administration (FHA) and Federal Housing Finance Agency (FHFA) announced yesterday changes to their loss mitigation requirements to streamline their processes and help struggling homeowners avoid foreclosure and stay in their homes.

  • July 28, 2016

    Fannie Mae announced Tuesday that it will be making several adjustments to its affordable HomeReady product that it believes will allow the product to serve more low- and moderate-income borrowers. Fannie Mae has informed NCSHA that these adjustments will also be incorporated into its HFA Preferred Products.


    Government Sponsored Enterprises (GSEs) - Resources

    • June 8, 2016

      Our organizations are writing to share our view that comprehensive reform to the secondary housing finance system must come through Congress. We believe that the current state of conservatorship has provided stability, but policymakers and stakeholders need to continue to work together on the important efforts to advance housing finance reform through a legislative solution. Absent reform, we run the risk of continuing to kick the can down the road without ensuring ongoing access to mortgage credit for millions of future homeowners. Policymakers need to continue to focus on the paramount objective of fixing the structural flaws that led to the breakdown of the housing finance system -- the only outcome that will protect taxpayers, preserve access to credit, and ensure a stable housing finance system.

    • June 2, 2016

      We take this opportunity to express our concerns with your agencies' policy of requiring Freddie Mac and Fannie Mae ("the GSEs") to operate without adequate capital. We appreciated Director Watt's recent remarks at the Bipartisan Policy Center focusing on the very serious risks to the GSEs' operations, and by extension to the overall housing finance market, if they are required to completely eliminate their capital buffers. We hope that these concerns will lead you to reassess this course of action.