Freddie Mac stands for Federal Home Loan Mortgage Corporation. The acronym is FHLMC, which can be pronounced Freddie Mac.
It was established in 1970 to stabilize the nation’s mortgage markets and expand opportunities for homeowners and affordable rental housing. It was also to provide a continuous, low-cost source of credit to finance housing in the Americas.
FM is similar to Fannie Mae in that it is a shareholder company rather than a government-run agency. The Department of Housing and Urban Development (HUD) is responsible for the oversight of the corporation.
Freddie Mac places great emphasis on promoting homeownership by cultivating strong relationships with public and private institutions to provide affordable housing. they have been at the forefront of ramping up aggressive initiatives to ensure mortgage financing is readily available to minorities.
They also focus on multi-family housing and especially low-income housing.
Like Fannie Mae, Freddie Mac must manage its losses by selling properties. They provide a guarantee that investors will receive payments as stated in their original agreement. The fee added to the contracts covers losses if a house goes into foreclosure.
Age and condition vary as you would expect. Normally, Freddie Mac does NOT repair or fix houses and prefers to sell them as is. He will have any property you are interested in examined by a licensed home inspector.
All homes that have been repossessed by FM are sold through licensed real estate agents throughout the country. They are listed on the Multiple Listing Service (MLS).
You will notice many similarities between this company and Fannie Mae.
Any individual can purchase a property from this organization and this includes owner occupants and non-owner occupants.
The first step is to be prequalified by a bank or other lender. After this has been documented, any licensed real estate agent can write an offer. It will be sent to the listing broker to be sent to Freddie Mac.
Its function is to operate only in the secondary mortgage market by issuing mortgage-backed securities to large investors.
If you have read both articles on Fannie Mae and Freddie Mac, you will notice similarities. Each offers many opportunities for profit. Analyze all the details carefully and seek professional advice.
