What is Freddie Mac
Freddie Mac is The Federal Home Loan Mortgage Corporation (FHLMC) that is publicly traded government sponsored enterprise. Freddie Mac was chartered by Congress in 1970 so money could keep flowing to the mortgage lenders and to support home ownership and the Rental market. The statutory mission of Freddie Mac is to provide liquidity, stability and affordability to the US Housing market. Freddie Mac is not a government agency but chartered by the Congress as a private company serving a public purpose.
Both Fannie Mae and Freddie Mac buy mortgages from lenders. They perform an important role in the nation's housing finance system. They buy mortgages from lenders, either hold them in their portfolios or package the loans into Mortgage Backed Securities (MBS) that may be sold in the Secondary Market. The cash raised by selling these mortgages to the enterprise is used by lenders to further use the funds for additional lending.
Related Topics: The History of the Mortgage Industry in the United States What are Conventional/conforming (e.g., Fannie Mae, Freddie Mac) loans? What are Conforming and Non Conforming Loans Primary and Secondary Mortgage Market What is a Mortgage Backed Security (MBS) What is a Loan Prospector (LP) Loan Limits on Types of Loans