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Federal Home Loan Mortgage Corporation |
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Federal Home Loan Mortgage Corporation (FHLMC) See: Freddie Mac
Federal Home Loan Mortgage Corporation A stockholder-owned corporation chartered by Congress in 1970 to assist home mortgage lenders with a steady flow of money.Called Freddie Mac (www.freddiemac.com) for short,it buys home mortgages from loan originators such as local financial institutions and then sells mortgage backed securities and debt securities. In order to realize one of its goals, to stabilize the mortgage industry, Freddie Mac has transformed the industry by standardizing mortgage documents, introducing automated underwriting, creating the market for conventional mortgage backed securities, and leading the fight against unfair and predatory lending practices. Its primary competitor is Fannie Mae; both are regulated by the Office of Federal Housing Enterprise Oversight in HUD. Freddie Mac (Federal Home Loan Mortgage Corp.) What Does Freddie Mac—Federal Home Loan Mortgage Corp. (FHLMC) Mean? A stockholder-owned, government-sponsored enterprise (GSE) chartered by Congress in 1970 that makes money easily available to mortgage lenders to promote affordable home ownership for middle-income Americans. The FHLMC purchases, guarantees, and securitizes mortgages into what are called mortgage-backed securities. The mortgage-backed securities trade like stocks and are purchased by institutions and other public investors. Investopedia explains Freddie Mac—Federal Home Loan Mortgage Corp. (FHLMC) Freddie Mac has come under criticism because as a government enterprise, it can borrow money at interest rates lower than those available to non-GSE financial institutions. With this funding advantage, it issues large amounts of debt (known in the marketplace as agency debt or agencies) and in turn purchases and holds a huge portfolio of mortgages known as its retained portfolio. It was the size of this retained portfolio that contributed to the systemic mortgage bank financial crisis of 2008. Related Terms: How to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit webmaster's page for free fun content. |
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Bank will be responsible for file certification, storage and compliance with the Government National Mortgage Association (Ginne Mae), Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac) and Federal Home Loan Bank (FHLB) standards. |
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