Freddie Mac Definition

Freddie Mac is also known as the Federal Home Loan Mortgage Corporation. This corporation is owned by stockholders and it was created by Congress in 1970 to help keep a steady supply of funds to mortgage lenders.

Mortgage lenders provide loans to support homeownership and rental housing. In turn, Freddie Mac purchases the mortgage notes from the lenders and re-packages them into securities that are sold on the open market to investors.

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