Companies » Freddie Mac

Freddie Mac

Freddie Mac is a stockholder-owned corporation established to support homeownership and rental housing. Freddie Mac purchases single-family and multi-family residential mortgages and mortgage-related securities, which it finances primarily by issuing mortgage-related securities and debt instruments in the capital markets. Freddie Mac finances its purchases primarily by issuing a range of debt instruments in the capital markets. The Company has two business activities: portfolio investment activities and credit guarantee activities.

Freddie Mac's customers are lenders in the primary mortgage market that originate mortgages for homebuyers. These lenders include mortgage banking companies, commercial banks, savings banks, community banks, credit unions, state and local housing finance agencies, and savings and loan associations. The Company purchases mortgage loans and mortgage-related securities and holds them in its retained portfolio for investment purposes. It also invests in mortgage-related securities issued by government agencies, referred to as agency securities. Freddie Mac also invests in non-agency mortgage-related securities. Freddie Mac participates in the secondary mortgage market generally by buying whole loans and mortgage-related securities for its retained portfolio and by issuing guaranteed mortgage-related securities. The Company does not lend money directly to homebuyers.

Official website:www.freddiemac.com