Federal Home Loan Mortgage Corporation FMCC

FMCC Company Overview

The Federal Home Loan Mortgage Corporation (Freddie Mac) is a U.S. government-sponsored enterprise (GSE) that operates in the housing finance and mortgage-backed securities industries. Its core mission is to provide liquidity, stability, and affordability to the U.S. housing market by purchasing residential mortgages from lenders, packaging them into securities, and guaranteeing those securities for investors. Freddie Mac primarily generates revenue through guarantee fees on mortgage-backed securities and returns on its retained mortgage investment portfolio.

Established in 1970 by an act of Congress, Freddie Mac was created to expand the secondary mortgage market, particularly for savings and loan institutions. Following the 2008 financial crisis, the company was placed into conservatorship under the Federal Housing Finance Agency (FHFA), where it remains today. Since then, Freddie Mac has significantly reduced its investment portfolio, strengthened underwriting and risk management practices, and refocused on its public mission while operating as a shareholder-owned corporation under federal oversight.