Freddie Mac Logo – Freddie Mac ( Federal Home Loan Mortgage Corporation ) is a publicly traded U.S. mortgage lender based in McLean , Virginia . Freddie Mac buys mortgages from banks to consolidate these loans and take them as mortgage-backed securities on the capital market . The current name of the company is derived as a quasi- acronym from the initials of its original name, Federal Home Loan Mortgage Corporation (FHLMC) from. Freddie Mac is a government sponsored enterprise , and by the Office of Federal Housing Enterprise Oversight (OFHEO) regulated. Currently, the company’s second-largest mortgage bank in the United States.
Freddie Mac was established in 1968 by the Congress of the United States as the Federal Home Loan Mortgage Corporation, established to the competitors at the same time, privatized Fannie Mae and the FHL Banks to compete and thus to prevent a monopoly. An accounting scandal led in 2003 to reshuffle in the upper echelons of the bank. From 2000 to 2002 the profits of the enterprise by several billion U.S. dollars had been expelled too low.
In 2008 the company came just as the rival Fannie Mae because of the real estate crisis in the United States into financial difficulties. On 13 July 2008 announced the U.S. government to Freddie Mac and Fannie Mae provides loans and equity purchases to support billions in a bankruptcy to prevent the two banks. U.S. Senate and U.S. House of Representatives this have on 23 Approved in July in the principles. On 7 September 2008 he assumed the supervisory authority Federal Housing Finance Agency (FHFA) in control of Freddie Mac. By 1 July 2009, Freddie Mac, total state aid funds totaling $ 51.7 billion related.