Glossary of Terms

Freddie Mac 2016-05-13 08:00:00

Freddie Mac

The Federal Home Loan Mortgage Corporation (FHLMC), more commonly known as “Freddie Mac” is a publicly traded (OTCQB: FMCC), quasi-private government sponsored enterprise (GSE) chartered by the US Congress in 1970 for the purpose of stabilizing the residential mortgage market and aiding in increase affordable rental housing options.  Much like Fannie Mae, Freddie Mac acquires mortgage loans and related securities, pools them and creates mortgage-backed securities which it then sells to investors on the open market.  By expanding the secondary mortgage market, Freddie Mac increases the amount of funds lenders have available which indirectly increases the amount of debt available for new home purchases.