Federal Home Loan Mortgage Corporation

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Related to Freddie Mac: Fannie Mae

Federal Home Loan Mortgage Corporation

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 Association (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.
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"We're very pleased to join our strong partner Greystone in this transaction, which highlights Freddie Mac's growing small balance portfolio business," said Stephen Johnson, vice president, Small Balance Loan Business at Freddie Mac Multifamily.
Depending upon how high interest rates rise in 2017, Freddie Mac expects the nationally aggregated cap rate to range from 5.8 percent to 6 percent.
resolved representation and warranty claims with Fannie Mae and Freddie Mac related to single-family mortgage purchases by the two companies.
The insurer said it would contribute $100 million to the mortgage insurance unit to make the payment to Freddie Mac once the deal becomes effective.
"His primary contact inside the organization was Mitchell Delk, Freddie Mac's chief lobbyist, and he was paid a self-renewing, monthly retainer of $25,000 to $30,000 between May 1999 until 2002, according to three people familiar with aspects of the business agreement." Gingrich announced November 16 while on the campaign trail that he had offered "strategic advice" to the mortgage giant, without elucidating further what that meant.
Since the launch of the Freddie Mac's multifamily business in 1993, May noted that Freddie Mac has provided financing for approximately 55,500 multifamily properties totaling almost $200 billion.
Both Fannie Mae and Freddie Mac have been private enterprises since then, up until September 7, 2008.
The extra $200 billion would allow Fannie Mae and Freddie Mac to purchase both existing mortgage-backed securities and new home loans originated by banks.
Frank, who has one of the sharpest minds in Congress, also has predicted that Congress will pass a bill in 2007 to tighten regulation of Fannie Mae and Freddie Mac. That may be his intention, but the political reality is that the Democratic Party has many higher priorities to pursue after twelve years out of power.
During the years in question (1985-1990), approximately 99% of the mortgage originators paying the commitment fee consummated a sale transaction by delivering a mortgage loan to Freddie Mac. Only approximately 1% failed to deliver a mortgage loan and forfeited the fee's refundable portion.
WITH THE SECONDARY MORTGAGE market expected to net Freddie Mac $1.5 trillion in mortgages this year--the highest amount ever--and several new programs launched, it comes as no surprise that Freddie Mac CEO Leland Brendsel has been named Housing Person of the Year by the National Housing Conference (NHC).