'Freddie Mac - Federal Home Loan Mortgage Corp - FHLMC'
Freddie Mac is a government-owned corporation that buys mortgages and packages them into mortgage-backed securities.
Its official title is the Federal Home Loan Mortgage Corporation, or FHLMC.
Banks use the funds received from Freddie to make new loans to homebuyers. That boosts the housing market and allows more Americans to become homeowners.
The FHLMC gives banks the ability to create 30-year mortgages.
Freddie Mac (FHLMC) is a stockholder-owned, government-sponsored enterprise (GSE) chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing for middle income Americans.
The FHLMC purchases, guarantees and securitizes mortgages to form mortgage-backed securities. The mortgage-backed securities that it issues tend to be very liquid and carry a credit rating close to that of U.S. Treasuries.
