Emergency Home Finance Act of 1970

(redirected from Emergency Home Finance Act)

Emergency Home Finance Act of 1970

The federal legislation creating the Federal Home Loan Mortgage Corporation, a partially government-run program initiated to stimulate the development of a secondary mortgage market and expand mortgages available to veterans and other groups.

Emergency Home Finance Act of 1970

Legislation in the United States that created Freddie Mac, a federally chartered company that guarantees mortgages granted to low- or middle-income households. The Act came about as a result of pressure to provide competition to Fannie Mae, which is another federally chartered company that does much the same thing. There was concern in the investment community that without this competition, government guaranteed mortgages would crowd out the market, which would be detrimental to non-guaranteed mortgages. Both Freddie Mac and Fannie Mae were put in federal receivership in 2008.
References in periodicals archive ?
Pursuant to Section 302 (b)(2) of the National Housing Act and Section 305 (a)(2) of the Emergency Home Finance Act of 1970, as amended, the maximum original loan amount for conforming home mortgages for 2002 is $300,700.
The Emergency Home Finance Act of 1970 not only created Freddie Mac, but empowered Fannie Mae to purchase conventional mortgages.
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