Freddie Mac computerFederal Financial Financial Corp. (FHLMC)

What exactly is Freddie Mac-Government Home loan Home loan Corp. (FHLMC)?

Brand new Government Home loan Home loan Corp. (FHLMC) are a stockholder-possessed, government-sponsored firm (GSE) chartered from the Congress inside the 1970 to store currency streaming so you can home loan loan providers, which helps homeownership and you may rental casing getting middle-money People in america. The fresh FHLMC, familiarly known as Freddie Mac computer, requests, promises, and you will securitizes mortgage brokers and that's a mainstay of your own second financial business.

Key Takeaways

• Freddie Mac computer 's the officially acknowledged moniker into Federal House Mortgage Mortgage Corp. (FHLMC).
• Freddie Mac computer are a shareholder-possessed, government-backed corporation (GSE) chartered of the Congress inside 1970 to get homeownership to possess middle-earnings Us citizens.
• Brand new character out of Freddie Mac computer is through buying much away from finance from mortgage lenders, up coming mix her or him and sell them once the mortgage-recognized ties.
• Federal national mortgage association and you may Freddie Mac computer is actually each other in public exchanged GSEs. The main difference between him or her is the fact Federal national mortgage association shopping mortgage loans of significant retail otherwise industrial banking companies, while you are Freddie Mac computer obtains their money out-of less financial institutions.