Meaning, the mortgages (default risk) are guaranteed by the government, either explicitly (FHA) or implicitly through a government sponsored interprise (Fannie and Freddie).
After the housing crisis the private market (mostly banks) left very quickly. FHA and the GSEs stepped in and took their share.
After the housing crisis the private market (mostly banks) left very quickly. FHA and the GSEs stepped in and took their share.