General Info

Federal Home Loan Mortgage Corporation, doing business as Freddie Mac, makes housing more accessible and affordable for millions of families across America by linking homeowners and renters to the world s capital markets. Primarily, Freddie Mac s customers are the primary lenders that homeowners get their loans from. These lenders extend mortgage loans directly to their customers who are purchasing or refinancing a home. The lenders then look to Freddie Mac to purchase the mortgage and replenish the primary lender s cash supply for lending. Freddie Mac funds these purchases through securitization-based financing, which means it issues a mortgage-related security that represents an undivided interest in the mortgage loans the company purchases. In this process, homeowners send their mortgage payment to the primary lender, which keeps a small fee and then sends the rest of the payment to Freddie Mac, which passes the remainder to investors who hold the company s mortgage securities. Through this unique mortgage credit system, Freddie Mac buys one mortgage every seven seconds and helps finance one in six American homes.