Freddie Mac (Noun)
Meaning
A corporation authorized by Congress to provide a secondary market for residential mortgages.
Classification
Nouns denoting groupings of people or objects.
Examples
- Freddie Mac buys mortgages from banks and other lenders, packaging them into securities that can be sold to investors.
- In 2008, the US government took over Freddie Mac and Fannie Mae, the two largest players in the secondary mortgage market.
- Freddie Mac was chartered by Congress in 1970 to provide financing for low- and moderate-income homebuyers.
- The financial crisis led to a significant decline in Freddie Mac's stock price, prompting concerns about the corporation's viability.
- Freddie Mac provides liquidity to the mortgage market by purchasing mortgages from lenders, allowing them to originate new loans.