Freddie Mac

Federal Home Loan Mortgage CorporationFHLMCFreddieFreddie Mac FoundationFederal Home Loan Mortgage CorpFederal Home Loan Mortgage Corporation (Freddie Mac)FreddyFreddy Mac
The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.wikipedia
361 Related Articles

Mortgage-backed security

mortgage-backed securitiesmortgage bondmortgage backed securities
Along with the Federal National Mortgage Association (Fannie Mae), Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market.
In the United States they may be issued by structures set up by government-sponsored enterprises like Fannie Mae or Freddie Mac, or they can be "private-label", issued by structures set up by investment banks.

Federal takeover of Fannie Mae and Freddie Mac

Fannie Mae and Freddie Macconservatorshiptakeover
On September 7, 2008, Federal Housing Finance Agency (FHFA) director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA (see Federal takeover of Fannie Mae and Freddie Mac).
The federal takeover of Fannie Mae and Freddie Mac was the placing into conservatorship of the government-sponsored enterprises (GSEs) Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac) by the U.S. Treasury in September 2008.

Secondary market

aftermarketsecondary tradingmarket for resale
The FHLMC was created in 1970 to expand the secondary market for mortgages in the US.
Another frequent usage of "secondary market" is to refer to loans which are sold by a mortgage bank to investors such as Fannie Mae and Freddie Mac.

James B. Lockhart III

James Lockhart
On September 7, 2008, Federal Housing Finance Agency (FHFA) director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA (see Federal takeover of Fannie Mae and Freddie Mac).
He was the Director (CEO) and Chairman of the Oversight Board of the Federal Housing Finance Agency (FHFA), the regulator of Fannie Mae, Freddie Mac and the 12 Federal Home Loan Banks.

Federal Housing Finance Agency

FHFAthe Federal Housing Finance AgencyDirector of the Federal Housing Finance Agency
On September 7, 2008, Federal Housing Finance Agency (FHFA) director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA (see Federal takeover of Fannie Mae and Freddie Mac). OFHEO, now merged into the new FHFA, annually sets the limit of the size of a conforming loan in response to the October to October change in mean home price.
In its role as regulator, it regulates Fannie Mae, Freddie Mac, and the 11 Federal Home Loan Banks (FHLBanks, or FHLBank System).

Fannie Mae

Federal National Mortgage AssociationFNMAFannie Mae Foundation
Along with the Federal National Mortgage Association (Fannie Mae), Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. On September 7, 2008, Federal Housing Finance Agency (FHFA) director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA (see Federal takeover of Fannie Mae and Freddie Mac).
Its brother organization is the Federal Home Loan Mortgage Corporation (FHLMC), better known as Freddie Mac.

Conservatorship

conservatorConservateeconservation
On September 7, 2008, Federal Housing Finance Agency (FHFA) director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA (see Federal takeover of Fannie Mae and Freddie Mac).
When referring to government control of private corporations such as Freddie Mac or Fannie Mae, conservatorship implies a more temporary control than does nationalization.

Mortgage loan

mortgagemortgagesmortgage loans
The FHLMC was created in 1970 to expand the secondary market for mortgages in the US.
These programs include the Government National Mortgage Association (known as Ginnie Mae), the Federal National Mortgage Association (known as Fannie Mae) and the Federal Home Loan Mortgage Corporation (known as Freddie Mac).

Conforming loan

conformingGSE conforming loan limit
The GSEs are allowed to buy only conforming loans, which limits secondary market demand for non-conforming loans.
In the United States, a conforming loan is a mortgage loan that conforms to GSE (Fannie Mae and Freddie Mac) guidelines.

Financial Institutions Reform, Recovery, and Enforcement Act of 1989

Financial Institutions Reform, Recovery and Enforcement Act of 1989Financial Institutions Reform, Recovery and Enforcement ActFinancial Institutions Recovery, Reform, and Enforcement Act of 1989
In 1989, the Financial Institutions Reform, Recovery and Enforcement Act of 1989 ("FIRREA") revised and standardized the regulation of Fannie Mae and Freddie Mac.
In addition, FIRREA gives both Freddie Mac and Fannie Mae additional responsibility to support mortgages for low- and moderate-income families (12 U.S.C §1441a–2(b).

Office of Federal Housing Enterprise Oversight

OFHEO
OFHEO, now merged into the new FHFA, annually sets the limit of the size of a conforming loan in response to the October to October change in mean home price.
It was charged with ensuring the capital adequacy and financial safety and soundness of two government sponsored enterprises—the Federal National Mortgage Association (Fannie Mae) and the Federal Home Loan Mortgage Corporation (Freddie Mac).

Federal Home Loan Bank Board

Federal Home Loan Bank of CincinnatiFHLBBHome Loan Bank Board
Initially, Freddie Mac was owned by the Federal Home Loan Bank System and governed by the Federal Home Loan Bank Board.
Looking to create a secondary mortgage market dedicated to buying loans from their constituent thrifts, the FHLBanks and board successfully lobbied for the creation of Freddie Mac, instead of an expanded Fannie Mae (which was limited to FHA insured loans), to be owned and controlled by the FHLBanks and the Federal Home Loan Bank Board and which would buy and sell loans from thrifts only.

Jumbo mortgage

jumbo loanjumbojumbo loans
Above the conforming loan limit, a mortgage is considered a jumbo loan.
This standard is set by the two government-sponsored enterprises, Fannie Mae and Freddie Mac, and sets the limit on the maximum value of any individual mortgage they will purchase from a lender.

Budget and Accounting Transparency Act of 2014

Budget and Accounting Transparency Act of 2014 (H.R. 1872; 113th Congress)
On May 8, 2013, Representatives Scott Garrett introduced the Budget and Accounting Transparency Act of 2014 (H.R. 1872; 113th Congress) into the United States House of Representatives during the 113th United States Congress.
The bill would also require the federal budget to reflect the net impact of programs administered by Fannie Mae and Freddie Mac.

Subprime mortgage crisis

2007 subprime mortgage financial crisissubprime crisissub-prime mortgage crisis
This made both corporations highly susceptible to the subprime mortgage crisis of that year.
Lending standards deteriorated particularly between 2004 and 2007, as the government-sponsored enterprise (GSE) mortgage market share (i.e. the share of Fannie Mae and Freddie Mac, which specialized in conventional, conforming, non-subprime mortgages) declined and private securitizers share grew, rising to more than half of mortgage securitizations.

David M. Moffett

David M Moffett
Herbert M. Allison former vice chairman of Merrill Lynch took over Fannie Mae, and David M Moffett, former vice chairman of US Bancorp, took over Freddie Mac.
David McKenzie Moffett (born February 22, 1952) is an American businessman and was formerly the CEO of Freddie Mac.

United States Department of Housing and Urban Development

Department of Housing and Urban DevelopmentU.S. Department of Housing and Urban DevelopmentHUD
An 18-member board of directors for Freddie Mac was formed and subjected to oversight by the U.S. Department of Housing and Urban Development (HUD).

David Kellermann

David B. Kellermann (August 1967 – April 22, 2009) was the acting chief financial officer of Freddie Mac in early 2009.

Scott Garrett

GarrettGarrett, ScottRep. Scott Garrett
On May 8, 2013, Representatives Scott Garrett introduced the Budget and Accounting Transparency Act of 2014 (H.R. 1872; 113th Congress) into the United States House of Representatives during the 113th United States Congress.
The bill would also require the federal budget to reflect the net impact of programs administered by Fannie Mae and Freddie Mac.

Bibliography of Fannie Mae and Freddie Mac

Fannie Mae and Freddie Mac: A Bibliography
For a comprehensive list of articles discussing Freddie Mac, see Bibliography of Fannie Mae and Freddie Mac.
This is an unannotated bibliography of writings about Fannie Mae and Freddie Mac as well as some material that covers other government sponsored enterprises such as the Federal Home Loan Bank System.

Government-sponsored enterprise

government sponsored enterpriseGSEGSEs
The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.
Well known GSEs are the Federal National Mortgage Association, or Fannie Mae, and the Federal Home Loan Mortgage Corporation, or Freddie Mac.

United States House Committee on Financial Services

Committee on Financial ServicesHouse Financial Services CommitteeBanking and Currency
Much of the illegal fund raising benefited members of the House Financial Services Committee, a panel whose decisions can affect Freddie Mac.
But "with plans to reform Fannie Mae and Freddie Mac expected to take up much of that panel's agenda, insurance instead [was] moved to a new Subcommittee on Insurance, Housing and Community Opportunity [as of the 112th Congress]."

Tysons, Virginia

Tysons CornerTysons Corner, VirginiaTysons
The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in Tysons Corner, Virginia.
Tysons is home to two super-regional shopping malls—Tysons Corner Center and Tysons Galleria—and the corporate headquarters of numerous companies such as Intelsat, DXC Technology, Gannett, Hilton Worldwide, Cvent, Freddie Mac, Capital One, and Booz Allen Hamilton.

Agency security

Agency SecuritiesAgency
Agency securities are specific securities that are issued by either Ginnie Mae, Fannie Mae, Freddie Mac or the Federal Home Loan Banks.

Government National Mortgage Association

Ginnie MaeGNMAGovernment National Mortgage Association (Ginnie Mae)
The publicly financed institution was named the Government National Mortgage Association (Ginnie Mae) and it explicitly guaranteed the repayments of securities backed by mortgages made to government employees or veterans (the mortgages themselves were also guaranteed by other government organizations).
Today, Ginnie Mae securities are the only mortgage-backed securities that are backed by the "full faith and credit" guaranty of the United States government, although some have argued that Fannie Mae and Freddie Mac securities are de facto or "effective" beneficiaries of this guarantee after the US government rescued them from insolvency in 2008.