Summary: GAO studied the activities, characteristics, and financial growth of government-sponsored enterprises (GSE), focusing on the: (1) government's potential risk exposure from GSE activities; and (2) current federal budgetary treatment of GSE activities.
GAO found that, from fiscal years (FY) 1980 to 1989, total GSE: (1) net borrowing and sales of mortgage-backed securities grew from $29.2 billion to $117.3 billion, while their debt and mortgage-backed securities outstanding grew from $174.7 billion to $833.7 billion; (2) collections increased from $89.2 billion to $429.2 billion, while their disbursements increased from $117.4 billion to $530.9 billion, with most of the increases occurring during FY 1986 and 1989; and (3) capital grew from $13.7 billion to $19.1 billion, an increase of about 40 percent. GAO also found that: (1) the Federal Home Loan Banks, Federal National Mortgage Association, and Federal Home Loan Mortgage Corporation accounted for approximately 90 percent of the total GSE activity; and (2) there had been a deterioration in the GSE capital level compared to the GSE activity level shown by collections, disbursements, and debt and exposure on mortgage-backed securities. GAO also provided the organizational, legal, and financial information on the 11 currently existing GSE authorized by Congress.
