Government-sponsored enterprise

Okay kiddo, you know how your parents have rules for you to follow at home, like cleaning your room and doing your homework? Well, the government has rules for companies that work with things like money and loans.

Some of these companies are called Government-Sponsored Enterprises, or GSEs for short. They help make it easier for people to buy homes, go to school, and get loans for businesses.

GSEs are like special helpers that help people get money they need. They have a special agreement with the government that allows them to get money easier and offer loans at lower interest rates.

That way, people can afford to buy homes and start businesses. GSEs also help make sure that banks have enough money to loan to people who need it.

But we need to make sure that these companies don't do things that could hurt the people who use their services or the whole economy. So the government sets rules to make sure GSEs are working fairly and not taking too much risk with money.

Overall, GSEs are pretty important because they help people get the money they need to do things like have a home, go to school, and start a business.