Freddie Mac

Freddie Mac

Introduction to FreddieMac

FreddieMac is a private entity that was chartered by Congress in 1970 to help stabilize the mortgage market and encourage lending. FreddieMac is currently under the conservatorship of the FHFA. FreddieMac does not provide loans directly to the public, they instead provide guarantees to lending facilities and invest in the mortgage market. FreddieMac is currently under review by Congress.

FreddieMac purchases all forms of mortgages from the lending market. They do not specialize in any specific area. They do provide additional assistance to lenders that sponsor first time home ownership programs and home affordable programs. They do not back any commercial properties unless it is for the purpose of providing affordable rental units to the private sector.

FreddieMac also provides direct funding for mortgages. With the money that they generate from their loans they further invest into the mortgage sector. FreddieMac is a publically traded company that until 2008 was ran independently of the U.S. Government. Due to current mortgage trends, FreddieMac is under the guidance of the FHFA.

Mortgage Rates

FreddieMac does not issue mortgages to the general public. They are a mortgage backing firm. However, FreddieMac supports the Homes Possible Mortgage Program. Home Possible is a program that provides lenders a guaranteed way to provide low cost mortgages to people that may not qualify for a conventional mortgage. This program also provides a means for banks to make no-cash-out refinancing options for people that are struggling with financial problems.

FreddieMac does manage many of the mortgages that it backs. Many people may find that they pay their mortgage payment directly to them. This does not mean that FreddieMac has issued the mortgage directly. If your mortgage is owned by FreddieMac, and you are having problems making your payment, FreddieMac mortgages qualify for the Home Affordable plan and other loan modification programs issued by the government.

FreddieMac assumes ownership of properties that enter into foreclosure that were backed by FreddieMac funding.

Refinance

FreddieMac does not provide any direct lending services. They do back refinance mortgages for many lenders country wide.

Home Equity Loans

FreddieMac does not issue any form of home equity loan or line of credit