Freddie Mac

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Freddie Mac (Federal Home Loan Mortgage Corporation)

A Congressionally chartered corporation that purchases residential mortgages in the secondary market from S&Ls, banks, and mortgage bankers and securities for sale in the capital markets.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Freddie Mac

Federal Home Loan Mortgage Corporation (FHLMC). A publicly-traded company chartered by the U.S. Congress to guarantee mortgages granted to low- or middle-income households. In order to do this, it buys mortgages and repackages them, selling them as mortgage-backed securities. It also maintains its own portfolio of mortgage-backed securities. It was established in 1970 to provide competition for Fannie Mae, which provides the same services and also had an implicit guarantee of federal backing. With the collapse of the housing bubble, Freddie Mac was placed in federal receivership in 2008 as a result of overexposure to this market. See also: Community Reinvestment Act, Credit Crunch.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

Freddie Mac

1. A stockholder-owned corporation chartered by Congress in 1970 to help supply funds to mortgage lenders such as commercial banks, mortgage bankers, savings institutions, and credit unions that in turn make funds available to homeowners and multifamily investors. Freddie Mac purchases mortgages from lenders and then packages the mortgages into guaranteed securities that are sold to investors. The firm's common stock trades as FRE on the New York Stock Exchange. Formerly called Federal Home Loan Mortgage Corporation.
2. A security that is issued by this corporation and is secured by pools of conventional home mortgages. Holders of Freddie Macs receive a share of the interest and principal payments made by the homeowners.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.

Freddie Mac.

Freddie Mac is a shareholder-owned corporation that was chartered in 1970 to increase the supply of mortgage money that lenders are able to make available to homebuyers.

To do its job, Freddie Mac buys mortgages from banks and other lenders, packages them as securities, and sells the securities to investors. The money it raises by selling these bonds pays for purchasing the mortgages.

Lenders use the money they realize from selling mortgages to Freddie Mac to make additional loans. Lenders must be approved in order to participate in the program. Loans must meet Freddie Mac qualifications to be eligible for purchase.

To facilitate the lending process, Freddie Mac provides lenders with an automated underwriting tool to help them evaluate mortgage applications.

Freddie Mac guarantees the securities it issues, but the bonds aren't federal debts and aren't federally guaranteed.

Like its sister corporation Fannie Mae, Freddie Mac shares are traded on the New York Stock Exchange (NYSE).

Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.

Freddie Mac

See Federal Home Loan Mortgage Corporation.
The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.

Freddie Mac

One of two federal agencies that purchase home loans from lenders. The other is Fannie Mae.

See Secondary Mortgage Markets/Fannie Mae and Freddie Mac.

The Mortgage Encyclopedia. Copyright © 2004 by Jack Guttentag. Used with permission of The McGraw-Hill Companies, Inc.
References in periodicals archive ?
"In this case, there is a genuine issue of material fact as to FHLMC's intent and whether its conduct was merely negligent or deceitful.
Final documentation for the program is seen in the written investment advisor agreement with the outside investment advisor for management of the SBA/ FHLMC pool.
Those concerned about the plight of real estate and principal risk, can still participate solely in CMO residuals where the mortgage certificate collateral is guaranteed by government or government-sponsored agencies (GNMA, FNMA, or FHLMC) reducing this variable to its lowest possible level.
FNMA (Federal National Mortgage Association, or "Fannie Mae") and FHLMC (Federal Home Loan Mortgage Corporation, or "Freddie Mac") issue both debt and MBS on which they guarantee the timely payment of principal and interest.
Specifically, we are able to tell whether a mortgage is held on the balance sheet of a financial institution, securitized by a government sponsored enterprise (GSE) such as Freddie Mac (FHLMC) or Fannie Mae (FNMA), or securitized by a non-agency, private institution.
So it has been with the housing market and the Federal National Mortgage Association (FNMA, or Fannie Mae) and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac).
Three of the best-known sources of these instruments are the Government National Mortgage Association (GNMA), the Federal National Mortgage Association (FNMA), and the Federal Home Loan Mortgage Corporation (FHLMC).
For almost one-half of a century, housing bond markets created from local municipalities, GNMA, FNMA and FHLMC (joined by the FHLB) have provided possibly the greatest infrastructure for the stability of our economy longer than any business in history by catering to the notion that home ownership is one of the most important goals that people strive for.
With respect to sources of capital, conduits have ourpaced other investors, followed by life insurance companies, FNMA/ FHLMC, and commercial banks.
The government-sponsored mortgage pools are the Government National Mortgage Association (GNMA, or Ginnie Mae), the Federal National Mortgage Association (FNMA, or Fannie Mae), and the Federal Home Loan Mortgage Corporation (FHLMC, or Freddie Mac).
The Government National Mortgage Association, the Federal National Mortgage Association and the Federal Home Loan Mortgage Corporation (FHLMC) are examples of government agencies that routinely buy residential mortgages and sell derivative interests therein to investors.
Federally related mortgage pools holdings include multifamily mortgages held by GNMA, FNMA, FHLMC and Farmers Home Administration that are financed in the capital markets.