Option Investor
Glossary

A | B | C | D | E | F | G | H | I | J | K | L | M | N | O | P | Q | R | S | T | U | V | W | X | Y | Z

Freddie Mac (Federal Home Loan Mortgage Association or FHLMC)

Created in 1970, Freddie Mac is a corporation, owned by stockholders and chartered by Congress. The FHLMC works to increase the funds supplied to mortgage lenders, such as credit unions, savings institutions and commercial banks, so that the funds can be passed along to homebuyers and multifamily investors. The FHLMC accomplishes this by purchasing mortgages from lenders and packaging them into mortgage securities that are resold to investors in denominations of $25,000. The securities created are fully taxable but are backed by the government, and are therefore considered to be low risk investments.