Freddie Mac (Federal Home Loan Mortgage Corp (FHLMC)
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.
Also known as "Freddie Mac". Investopedia Says:
Freddie Mac has come under criticism because its ties to the U.S. government allows it to borrow money at interest rates lower than those available to other financial institutions. With this funding advantage it issues large amounts of debt (known in the market place as agency debt or agencies), and in turn purchases and holds a huge portfolio of mortgages known as its retained portfolio. Many people believe that the size of the retained portfolio poses a great deal of systematic risk to the entire U.S. Related Terms:
Connie Lee - College Construction Loan Insurance Association - CCLIA
Dwarf
Fannie Mae - Federal National Mortgage Association - FNMA
Farmer Mac - Federal Agricultural Mortgage Corporation - FAMC
FHA Loan
Ginnie Mae - Government National Mortgage Association - GNMA
Guarantee Fees
Pass-Through Rate
Real Estate Investment Trust - REIT
Secondary Market |