Freddie Mac

Freddie Mac or the Federal Home Loan Mortgage Corporation was created by Congress in 1970 to provide liquidity, stability and affordability to the nation’s housing market.  Just like Fannie Mae, Freddie Mac is a government-sponsored enterprise that buys loans from mortgage lenders or banks, then packages them together, and finally sells them as a mortgage-backed security to investors on the open market. This ensures the supply of money available for mortgage lending and increases the money available for new home purchases.