The Federal Home Loan Mortgage Corporation (FHLMC) or more commonly known as Freddie Mac is a United States GSE, Government sponsored entity. Founded in 1970 and created out of the Emergency Home Finance Act of 1970, Freddie Mac essentially buys mortgages, packages them together in what are known as mortgage backed securities or MBSs and sells them to private investors. This process allows lenders the ability to reinvest their assets in making new mortgages and promoting home ownership. Along with its sister corporation, Fannie Mae, they are responisble for keeping the conventional mortgage market healthy by guaranteeing loans up to a certain size, called the conforming loan limit which is updated annually by state and county throughout the U.S. I’m Stewart Brown, a licensed Mortgage Loan Originator in Palm Springs, California here to simply topics in Real Estate and Mortgage Lending. Please, like, share, follow and subscribe!
