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Who is Freddie Mac?

In our last post, we answered the question, “Who is Fannie Mae?”The appropriate follow-up to that is to talk about Freddie Mac, a similar organization and another major player in the American real estate market. Freddie Mac is the common name for the Federal Home Loan Mortgage Corporation. Like Fannie Mae, Freddie Mac is a government-sponsored enterprise. However, Fannie Mae has been around since the 1930s while Freddie Mac was founded in 1970.

What is Freddie Mac’s mission? As stated on the Freddie Mac website

Freddie Mac’s mission is to provide liquidity, stability and affordability to the housing market.

Congress defined this mission in our 1970 charter, which lays the foundation of our business and the ideals that power our goals.

Our mission forms the framework for our business lines, shapes the products we bring to market and drives the services we provide to the nation’s housing and mortgage industry. Everything we do comes back to making America’s mortgage markets liquid and stable and increasing opportunities for homeownership and affordable rental housing across the nation.

Currently regulated by the U.S. Department of Housing and Urban Development, Freddie Mac is similar to Fannie Mae in that it buys conforming loans from the secondary housing market. In February 2007, Freddie Mac also announced that it would buy subprime adjustable rate mortgages for qualified individuals.

In September 2008, the Federal Housing Finance Agency placed Freddie Mac (along with Fannie Mae) under conservatorship. Treasury funds were advanced to stabilize the organization and provide flexibility as the real estate market tried to recover from the subprime mortgage crisis of the past several years.

Search for foreclosure homes www.bestreohomes.com

The views published here are the opinions of the writer and are not a substitute for legal counsel.

Posted: Friday, February 26, 2010 10:50 AM by Israel and Rachel Gonzalez


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