Freddie Mac

(redirected from Federal Home Loan Mortgage Corp)
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Related to Federal Home Loan Mortgage Corp: Fannie Mae, Freddie Mac

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.

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.

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.

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).

Freddie Mac

See Federal Home Loan Mortgage Corporation.

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.

References in periodicals archive ?
The Walkers acquired the 4.1-acre development in August 1993 from the Federal Home Loan Mortgage Corp. for an undisclosed sum FHL Mortgage entered the ownership picture via a $760,000 foreclosure sale in June 1991.
In 1992, Utendahl Capital Partners was just six months old, but already it had made a name for itself as the first black-owned firm to co-manage a Federal Home Loan Mortgage Corp. deal.
(RTC), the former cooperative shareholders in a Brooklyn property that came into the hands of the Federal Home Loan Mortgage Corp. (FHLMC), also known as Freddie Mac, should revert to rent stabilized treatment.
18 November 2013 a[euro]" US hedge fund Pershing Square Capital Management LP unveiled it had bought nearly 10% stakes in both the Federal National Mortgage Association (OTCBB:FNMA), also known as Fannie Mae, and the Federal Home Loan Mortgage Corp (OTCBB:FMCC), or Freddie Mac.
14 November 2013 -- Miami-based Fairholme Capital Management said that it has submitted a proposal to relevant federal government officials for the purchase by private investors of the mortgage-backed securities insurance businesses of US mortgage funders Federal National Mortgage Association and the Federal Home Loan Mortgage Corp.
According to the Federal Home Loan Mortgage Corp., the national average commitment rate for 30-year, conventional, fixed-rate mortgages declined from 7.21 percent in July to 6.91 percent in September.
14 November 2013 a[euro]" US investment manager Fairholme Capital Management LLC said it had offered to acquire the mortgage-backed securities insurance operations of the Federal National Mortgage Association (OTCBB:FNMA), also known as Fannie Mae, and the Federal Home Loan Mortgage Corp (OTCBB:FMCC), or Freddie Mac.
3 October 2013 -- California-based financial services firm Wells Fargo & Co (NYSE: WFC) said that on September 27 2013 the company reached an agreement with the Federal Home Loan Mortgage Corp (Freddie Mac) that resolves substantially all repurchase liabilities related to loans sold to Freddie Mac prior to January 1 2009.
Additionally, the act's "language," says Jordan, was adapted to create minority opportunities at the Federal National Mortgage Association (Fannie Mae), the Federal Home Loan Mortgage Corp. (Freddie Mac) and the Student Loan Marketing Association (Sallie Mae).
The Federal Home Loan Mortgage Corp. reported that the national average commitment rate for 30-year, conventional, fixed-rate mortgages dropped to 6.91 percent last month, the lowest level since the late 1960s.
4 June 2013 a[euro]" US investment manager Fairholme Capital Management LLC said it had bought preferred shares of rescued mortgage lenders Federal National Mortgage Association (OTCBB:FNMA), or Fannie Mae, and Federal Home Loan Mortgage Corp (OTCBB:FMCC), or Freddie Mac, worth an aggregate USD2.4bn (EUR1.8bn).

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