Who are the Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac)?


The Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac) are dedicated to helping families afford quality homes or rental housing by reducing the interest cost of homeownership. Low-income and minority households are a special niche, targeted by Freddie Mac.

The Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac) is a major player in the secondary mortgage market in America

What does the Federal Home Loan Mortgage Corporation (Freddie Mac) do?

Consumers apply for home mortgage loans through banks, credit unions, thrifts, private mortgage lenders and companies, online mortgage lenders and brokers. These are the primary market home loan lenders who extend money directly to borrowers. Those lenders underwrite the loans so that they could sell most of them on the secondary home loan mortgage market. Some primary lenders would also hold their own portfolio of mortgage loans.

Freddie Mac (like Fannie Mae) is a quasi-government entity that purchases loans from primary home loan mortgage lenders and packages them into mortgage-backed securities (MBS) to sell those securities on Wall Street. Selling MBSs to Wall Street investors allows Freddie Mac to replenish their funds and buy new loans, thus making the mortgage process smooth and effective.

Home loan mortgages purchased by the Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac) have to be underwritten under specific Freddie Mac criteria to provide high quality to investors.

Mortgage rates hit their lowest since 1955. Ask the home loan experts we recommend Quicken Loans how to take advantage of them.
Was this Mortgage QnA helpful?
Not at all
  • Currently 3/5 Stars
  • 1
  • 2
  • 3
  • 4
  • 5
Add to this Answer

Mortgage QnA is not a common forum. We have special rules:

  • Post no questions here. To ask a question, click the Ask a Question link
  • We will not publish answers that include any form of advertising
  • Add your answer only if it will contrubute to the quality of this Mortgage QnA and help future readers
If you have trouble reading the code, click on the code itself to generate a new random code. Verification Code Above:
Bookmark and share this QnA: