Freddie Mac

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Freddie Mac is a stockholder owned corporation chartered by Congress in 1970 to keep money flowing to mortgage lenders, such as commercial banks, mortgage bankers, savings institutions and credit unions, in support of homeownership and rental housing. By doing so, Freddie Mac helps lower housing costs and provide better access to home financing. Freddie Mac's mission is to provide liquidity, stability and affordability to the housing market.

Because Freddie Mac exists, millions of Americans have benefited from lower monthly mortgage payments and better access to home financing.

Freddie Mac does not lend money or make loans directly to homebuyers, that is the lender's job. After borrowers complete the closing process on their mortgage loans, Freddie Mac buys those mortgages from their approved lenders. The process of replenishing the supply of funds enables the lenders to make more mortgage loans to other borrowers. Consumers benefit from lower mortgage interest rates, readily available home mortgage credit, a wider selection of mortgage products and reduced origination costs.

Freddie Mac is not responsible for the decisions made by its lenders. These guidelines help lenders decide whether a borrower is willing and able to repay the mortgage on time and whether the property is valuable enough to help pay off the mortgage if the borrower defaults on the mortgage payments.

Freddie Mac is not a government agency. Freddie Mac is owned by its shareholders and, like other corporations, is accountable to its shareholders and a board of directors. Anyone can own Freddie Mac stock, which is traded under the stock ticker symbol FRE on the New York and Pacific Stock Exchanges. In the local newspaper, the stock price is referenced as FredMac.

Freddie Mac is regulated. The Federal Housing Enterprises Financial Safety and Soundness Act of 1992 created a regulatory oversight structure for Freddie Mac divided to address two functions, the housing mission and safety and soundness. The United States Department of Housing and Urban Development (HUD) has oversight responsibilities for the housing mission of Freddie Mac.

For more information go to: www.freddiemac.com/

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