Federal Home Loan Mortgage Corporation

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Related to Federal Home Loan Mortgage Corporation: Freddie Mac

Federal Home Loan Mortgage Corporation,

commonly known as

Freddie Mac,

government-sponsored enterprise that uses private capital to buy home mortgages as a means to help lower housing costs. A sister institution to the Federal National Mortgage AssociationFederal National Mortgage Association
(FMNA), commonly known as Fannie Mae,
government-sponsored enterprise that is the largest purchaser and guarantor of home mortgages in the country. Headquartered in Washington, D.C.
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 (Fannie Mae), as well as a sometime competitor, Freddie Mac aims to foster liquidity, stability, and affordability in the U.S. mortgage market to give Americans the opportunity to afford housing. Chartered by Congress in 1970, it purchases mortgages from a variety of lenders and issues numerous publicly offered securities backed by those mortgages; it also retains some securities in its portfolio. One of the country's biggest buyers of home mortgages, by the early years of the 21st cent. Freddie Mac had provided help to over 46 million families, or approximately one in every six American homes. However, disclosures in 2003 that Freddie Mac had misstated its earnings for 2000–2002 damaged its credibility. In 2008 housing-market and mortgage-default problems that began in 2007 led to significant losses at Freddie Mac and concerns about its undercapitalization and possible bankruptcy. It and Fannie Mae, which was in less severe financial straits, were placed under the conservatorship of Federal Housing Finance Agency in Sept., 2008, in an attempt avoid a collapse of confidence in the U.S. mortgage-financing system. Freddie Mac has its headquarters in McLean, Va.
References in periodicals archive ?
The Federal Home Loan Mortgage Corporation is not a bank nor is it a savings and loan association.
Department of the Treasury, "Government Sponsorship of the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation," July 11, 1996.
Two government-sponsored enterprises dominate secondary market purchases in conventional mortgage loans--the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac ).
Other sponsors of the Tavern on the Green party were Mortgage Bankers Association of America, the Federal Home Loan Mortgage Corporation and realtor groups from Missouri.
The Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac) have both announced initiatives in recent years to purchase loans with underwriting guidelines or payment terms that do not meet their more traditional loan purchase programs.
Commissioner Aponte pointed out that a "record number of foreclosures are taking place in the city, and he noted that "the Federal Home Loan Mortgage Corporation recently was called on to assist a major New York savings bank lender in danger of going under because of housing foreclosures.
In this regard, the Board understands that the Federal Housing Administration, the Veterans Administration, the Federal National Mortgage Association, and the Federal Home Loan Mortgage Corporation, as well as many private mortgage insurers, will require appraisals that are performed by licensed or certified appraisers for residential loans and insured or guaranteed by them.
He also is a member of the MBA's secondary and capital markets committee and the Federal Home Loan Mortgage Corporation (Freddie Mac) liaison committee.

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