Freddie Mac

Freddie Mac engages in providing mortgage capital to lenders. Freddie Mac provides liquidity, stability and affordability to the US housing market. Freddie Mac buys mortgages on the secondary market, pools them, and sells them as mortgage-backed securities to investors in the open market. 

This secondary mortgage market activity increases the supply of capital available to financial institutions for mortgage lending purposes, reduces the cost of capital (interest rates) for residential real estate, and transfers the credit risk of mortgage lending in the US to large, well-capitalized investors worldwide.

1971: The first conventional mortgage security, the Mortgage Participation Certificate (PC), is introduced.

1983: The pair were subject to restrictions on the size of loans they could purchase: the upper limit was $108,300.

1984: Freddie Mac topped the $100 billion mark for home financing.

1988: In 1988, the CEO told Fortune magazine, “Freddie Mac is a triple dip.”

1989: The Financial Institutions Reform, Recovery and Enforcement Act of 1989 (“FIRREA”) revised and standardized the regulation of Fannie Mae and Freddie Mac.

1990: Savings banks and S&Ls would be required to hold bigger reserves against loan losses on ordinary mortgages as opposed to holdings of securitized mortgages, creating another economic incentive to deal in the secondary market. Shareholders elected 13 directors; the president appointed five others.

1991: Freddie Mac earned $555 million.

1993: $691.1 billion in total multifamily loan funding since this year. Freddie Mac's cumulative mortgage finances topped the $1 trillion mark.

1995: Freddie Mac launched an automated underwriting service, the Loan Prospector.

1999: On a side note, ex-Speaker of the House Newt Gingrich joined Freddie Mac as a consultant.

2001: Anticipating a housing expansion during the first decade of the 21st century, Freddie Mac in July announced plans to raise $2 trillion in funding.

2007: The Federal Housing Reform Act transferred these responsibilities to the new Federal Housing Finance Agency. Both Freddie Mac and Fannie Mae suffered heavy losses in 2007–08 during the subprime mortgage crisis, a severe contraction of liquidity in credit markets worldwide brought about by drastic declines in the value of securities backed by subprime mortgage loans.

2008: To prevent further losses that would worsen the crisis and damage the United States economy, both corporations were placed under the conservatorship of the United States government in September, though neither was legally entitled to any direct government backing, insurance, or support. Barack Obama is number 2 on the list.  Turns out that putting people in homes they can't afford is a bad idea.

2019: At year-end, our LIHTC equity investments totalled $1 billion.

We serve america's homebuyers, homeowners and renters by providing liquidity, stability and affordability to the housing market.

Freddie Mac recognizes their position in the financial industry and they strive to remain a leader in affordable housing.  As such, their core values illustrate how they will not compromise their ethics in meeting the needs of their borrowers.