Freddie Mac (FHLMC) The Federal Home Loan Mortgage Corporation

History of “Freddie Mac,” (FHLMC) or otherwise known as “The Federal Home Loan Mortgage Corporation,” established in 1970 to add competition on the consumer’s behalf to compete with “Fannie Mae,” (FNMA) or otherwise known as “The Federal National Mortgage Association,” who predominately possessed the market as far  back as the late 1930’s to help rebuild the stagnant Real Estate market during the Great Depression.

As we know,  Fannie Mae (FNMA) & Freddi Mac (FHLMC) purchase mortgages are referred as “Conforming,” or “Conventional Loans.”  These loans purchased by either entity must conform FNMA or FHLMC’s underwriting guidelines & lending limitations apply.  Conventional loans (owned by Fannie or Freddie) are not insured by the federal government.  If the loan is not FHA, VA, or USDA the likely hood the loan is a Fannie Mae or Freddie Mac is assumed.

 

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