Definition

1. Proper noun:
   • A U.S. government-sponsored enterprise: The Federal Home Loan Mortgage Corporation is a publicly traded, government-sponsored entity created by the U.S. Congress. Its primary public purpose is to increase the availability of mortgage credit for American homebuyers by purchasing mortgages from lenders, thereby providing those lenders with more capital to issue new loans.

Usage

• The term is used as a proper noun to refer specifically to this corporation. It is commonly known by its stock ticker symbol, Freddie Mac.
• It is used in financial, housing policy, and economic contexts.

Examples

• Proper noun:
  • The Federal Home Loan Mortgage Corporation plays a crucial role in the U.S. housing finance system.
  • Mortgage rates are influenced by the purchasing activity of the Federal Home Loan Mortgage Corporation and its sibling entity.

Advanced Usage

• The corporation is often discussed in the context of its conservatorship by the U.S. federal government, which began in 2008 during the financial crisis.
• It is frequently mentioned alongside the Federal National Mortgage Association (Fannie Mae) as a key part of the "government-sponsored enterprise" (GSE) model for secondary mortgage markets.

Variants and Related Words

• Freddie Mac (n): The universal and official nickname for the Federal Home Loan Mortgage Corporation.
  • Investors monitor the bond offerings from Freddie Mac.

Synonyms

• Freddie Mac: This is the direct and universally recognized synonym.
• GSE (Government-Sponsored Enterprise): A categorical term that includes this corporation along with others like Fannie Mae.

Related Terms and Concepts

• Secondary Mortgage Market: The financial market where existing mortgages are bought and sold, which is the primary arena for this corporation's operations.
• Mortgage-Backed Security (MBS): A type of investment security that this corporation issues, which is backed by a pool of mortgages.

Noun

1. a corporation authorized by Congress to provide a secondary market for residential mortgages