The Federal Home Loan Mortgage Corporation, or Freddie Mac, was created by the U.S. Congress in 1970 to promote stability and affordability in the housing market. It operates in the U.S. secondary mortgage market by purchasing mortgage loans from lenders, such as banks and credit unions. Freddie Mac then pools these loans and sells them as mortgage-backed securities (MBS) to investors on the open market. This process provides lenders with a continuous supply of funds, allowing them to make more loans to homebuyers and renters. Since 2008, Freddie Mac has been operating under a conservatorship of the Federal Housing Finance Agency (FHFA).

Founded in

United States