Federal Home Loan Mortgage Corporation

Mclean, VA United States

  (OTC: FMCC)

Company Description

These siblings know there's no place like home. Government-sponsored enterprises (GSEs) Freddie Mac (officially Federal Home Loan Mortgage Corporation) and Fannie Mae were established to buy residential mortgages and boost the housing market. They do so by purchasing mortgages from lenders and packaging them for resale, thereby mitigating risk and allowing lenders to provide mortgages to those who may not otherwise qualify. The agency also provides assistance for affordable rental housing. Together, Fannie and Freddie guarantee some 70% of all new home loans in the US. Due to losses related to the subprime mortgage crisis, the government seized Fannie and Freddie in 2008. It now plans to wind the GSEs down.