GSEs Move Toward Capitalization: What It Could Mean for Investors

Liz Brumer-Smith, The Motley Fool
·4 min read

Government-sponsored entities (GSEs) Fannie Mae (OTCMKTS: FNMA) and Freddie Mac (OTCMKTS: FMCC) play a critical role. With this responsibility comes great risk and financial burden, which is why the Treasury and Federal Housing Finance Agency (FHFA) are moving away from the current conservatorship by federal agencies toward capitalization in the private sector.