The Government-Sponsored Enterprises (GSEs) have a long history in the housing finance
system of the United States. For decades, they played a crucial role in establishing a solid
foundation of the secondary mortgage market, which provide liquidity, stability and
affordability to the mortgage market. Taking a step back to look at the history of the GSEs is
important to understanding the financial crisis, its causes, and lessons for the future (Federal
Housing Finance Agency Office of Inspector General).