Freddie Mac, or the Federal Home Loan Mortgage Corporation, is a publicly traded company and one of two government-sponsored enterprises (GSEs) that buys and sells mortgages in the secondary market in order to provide liquidity to the housing market.
Founded in 1970, Freddie Mac operates under a congressional charter and is overseen by the Federal Housing Finance Agency (FHFA). The company's primary mission is to make homeownership more affordable by supporting the mortgage market, particularly for low and moderate-income families.
Freddie Mac purchases mortgages from banks and other lenders, pools them together into mortgage-backed securities, and sells them to investors. The company also offers various credit risk transfer (CRT) products that help to reduce the risk exposure of its mortgage portfolio.
In addition to supporting the primary mortgage market through the purchase and sale of mortgages, Freddie Mac offers a variety of resources to lenders and borrowers, including mortgage loan origination software and educational programs for consumers.
Overall, Freddie Mac plays a significant role in the financial industry by providing critical liquidity to the housing market and supporting the availability of affordable homeownership options for all types of borrowers.
Freddie Mac
Financial Term
Freddie Mac, or the Federal Home Loan Mortgage Corporation, is a publicly traded company and one of two government-sponsored enterprises (GSEs) that buys and sells mortgages in the secondary market in order to provide liquidity to the housing market.
Founded in 1970, Freddie Mac operates under a congressional charter and is overseen by the Federal Housing Finance Agency (FHFA). The company's primary mission is to make homeownership more affordable by supporting the mortgage market, particularly for low and moderate-income families.
Freddie Mac purchases mortgages from banks and other lenders, pools them together into mortgage-backed securities, and sells them to investors. The company also offers various credit risk transfer (CRT) products that help to reduce the risk exposure of its mortgage portfolio.
In addition to supporting the primary mortgage market through the purchase and sale of mortgages, Freddie Mac offers a variety of resources to lenders and borrowers, including mortgage loan origination software and educational programs for consumers.
Overall, Freddie Mac plays a significant role in the financial industry by providing critical liquidity to the housing market and supporting the availability of affordable homeownership options for all types of borrowers.