Federal Home Loan Mortgage Corporation (Freddie Mac)

The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, is a government-sponsored enterprise (GSE) chartered by Congress in 1970. Its core mission is to provide liquidity, stability, and affordability to the U.S. housing market. Headquartered in McLean, Virginia, Freddie Mac operates within the secondary mortgage market, playing a critical role in ensuring a consistent and affordable supply of mortgage funds across the country.

Freddie Mac's primary business involves purchasing single-family and multifamily residential mortgage loans from lenders, such as commercial banks, savings institutions, and credit unions. These loans are then pooled and transformed into mortgage-backed securities (MBS), which Freddie Mac guarantees and sells to investors in the global capital markets. This process replenishes lenders' funds, enabling them to originate more mortgages, and transfers interest-rate and liquidity risks to third-party investors. The company operates through distinct Single-Family and Multifamily business segments, alongside its Capital Markets division.

Freddie Mac has been under the conservatorship of the Federal Housing Finance Agency (FHFA) since September 2008, a status that continues to shape its operations and market positioning. While its common stock trades on the OTC market under the ticker FMCC, the FHFA, as conservator, holds the powers of management and shareholders, and the U.S. Treasury holds senior preferred stock and warrants for a significant portion of common stock. In December 2025, Kenny M. Smith was appointed CEO, with Michael Hutchins continuing as President. As of June 18, 2026, Freddie Mac reported the 30-year fixed-rate mortgage averaged 6.47%, reflecting ongoing market dynamics.