The rating on the senior debt of Fannie Mae reflects the company's status as a government-sponsored enterprise (GSE). While there is no U.S. government guarantee on this debt, the Secretary of the Treasury has authority to purchase up to $2.25 billion of Fannie Mae's obligations. In addition the approval of the Secretary of the Treasury is necessary for the corporation's issuance of debt obligations and MBS, and the corporation has been granted broad authority by the Treasury to do so. The Office of Federal Housing Enterprise Oversight (OFHEO), which is itself under HUD, regulates Fannie Mae from a safety and soundness perspective. The public purpose that Fannie Mae seeks to fulfill is the promotion of mortgage credit by increasing the
