Glossary Word Definition: Federal Home Loan Mortgage Corporation (FHLMC)

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Federal Home Loan Mortgage Corporation (FHLMC)

The Federal Home Loan Mortgage Corporation (FHLMC) known as Freddie Mac, is a government sponsored enterprise chartered on July 24, 1970, pursuant to Title III of the Emergency Home Finance Act of 1970, as amended, 12 USC 1451-1459 (the Freddie Mac Act). Freddie Mac was established to increase the availability of mortgage credit for residential housing, primarily through developing and maintaining an active, nationwide secondary market in conventional residential mortgages. Freddie Mac's statutory mission is to provide ongoing assistance to the secondary market for home mortgages, to respond appropriately to the private capital market, and to provide ongoing assistance to the secondary market for home mortgages (including mortgages securing housing for low and moderate income families involving a reasonable economic return to Freddie Mac) by increasing the liquidity of mortgage investments and improving the distribution of investment capital available for home mortgage financing. Feddie Mac began issuing notes and debentures in 1981. These debt instruments are unsecured general obligations of Feddie Mac issued in book entry form. Debentures have a specified term of at least one year and generally pay interest semi-annually at a fixed coupon rate.