Freddie Mac

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Related to Freddie Mac: Fannie Mae

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.

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).

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 ?

"Greystone is a trusted partner in the refinance process, helping to identify which assets could benefit from Freddie Mac's favorable terms, and helping us to get across the finish line in time with 8 properties at once," said Lubin.

Brooklyn investor on good terms with Freddie Mac small balance lender

provides greater certainty in the marketplace and is in line with our responsibility for preserving and conserving Fannie Mae's and Freddie Mac's assets on behalf of taxpayers.

JPMorgan Chase pays $5.1 billion to settle mortgage-backed securities cases

An Associated Press report November -16 corroborated much of the Bloomberg account, noting that Gingrich's role was to win Republican support for Freddie Mac. Most Republicans wanted to rein in the mortgage giant (and Fannie Mae) during the housing bubble to prevent the federal government from being on the hook for a bailout.

Newt Gingrich's Freddie Mac problem

What is it exactly that Fannie Mae and Freddie Mac do?

Q andA: Fannie Mae and Freddie Mac

After the announcement, shares of Fannie Mae and Freddie Mac rose sharply for a second day.

Fannie, Freddie cleared to pump $200bn into market

Even so, it will take a lot more than presidential friendship to end Fannie Mae's and Freddie Mac's dependence on their federal charters.

Fannie and Freddie post-election: the significance of the Democratic victories

The IRS argued that the nonrefundable portion of the commitment fees should have been included in Freddie Mac's income in the year of receipt, because the taxpayer had met the Sec.

Loan purchase commitment fees upheld as option premiums

Congress chartered Freddie Mac, a stockholder-owned corporation, in 1970 to create a continuous flow of funds to mortgage lenders.

High Honors

Freddie Mac has done its first securitization of assisted living and senior facility multifamily mortgages.

Freddie Mac does senior housing securitization

Depository institutions generally had higher portfolio and market shares than the two for-profit government-sponsored enterprises that are active in the secondary market, the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Distribution of credit risk among providers of mortgages to lower-income and minority homebuyers

For a number of years the management of Freddie Mac (the Federal Home Loan Mortgage Corporation) has used mark-to-market (MTM) information to assess corporate performance in its operations and decision making.

Mark-to-market: Freddie Mac's fourth financial statement

It assigned new unenhanced ratings to three classes of FREMF 2016-K723 Multifamily Mortgage Pass-Through Certificates and three classes of Freddie Mac Structured Pass-Through Certificates, Series K-723.