What is Freddie Mac-Federal Financial Home loan Corp. (FHLMC)?
Brand new Federal Home loan Home loan Corp. (FHLMC) was a stockholder-had, government-backed corporation (GSE) chartered because of the Congress for the 1970 to save currency moving so you’re able to home loan loan providers, which often supporting homeownership and leasing construction getting center-earnings People in the us. The fresh FHLMC, familiarly known as Freddie Mac computer, orders, promises, and you can securitizes lenders which can be a mainstay of your secondary home loan business.
Secret Takeaways
- Freddie Mac is the theoretically approved nickname on the Government House Financing Home loan Corp. (FHLMC).
- Freddie Mac computer is actually a stockholder-owned, government-paid corporation (GSE) chartered because of the Congress in 1970 to get homeownership for middle-income Us citizens.
- The new role of Freddie Mac is through buying loads off financing from mortgage brokers, next combine them and sell him or her once the home loan-supported ties.
- Federal national mortgage association and you will Freddie Mac was one another publicly traded GSEs. The main difference between her or him is that Fannie mae shopping mortgage fund off significant merchandising otherwise industrial banks, when you’re Freddie Mac obtains the money of less financial institutions. Continue reading “Freddie Mac computerGovernment Financial Mortgage Corp. (FHLMC)”
