Freddie Mac stands for Federal Home Loan Mortgage Corporation. The acronym is FHLMC which may be pronounced Freddie Mac.
It was established in 1970 to stabilize the nations mortgage markets and expand opportunities for homeowners and affordable rental housing. It was also to provide a continuous and low cost source of credit to finance Americas housing.
Freddie Mac is similar to Fannie Mae in the sense that it is a share holder company rather than a government run agency. The Department of Housing and Urban development (HUD) is responsible for oversight for the corporation.
Freddie Mac places strong emphasis on promoting home ownership by cultivating strong relationships with both public and private institutions to provide affordable housing. they have been at the helm augmenting aggressive initiatives to ensure that mortgage financing is readily available to minorities.
They also focus on multifamily housing and especially low income housing.
Like Fannie Mae, Freddie Mac must manage their losses by selling property. They provide a guarantee that investors will receive payments as indicated in their original agreement. The fee that is added to contracts cover for the losses if a house goes into foreclosure.
The age and condition vary as you might expect. Normally Freddie Mac does NOT repair or fix up houses preferring to sell then as is. Have any property you are interested examined by a licensed Home Inspector.
All houses that have been foreclosed on by Freddie Mac are sold through licensed real estate agents throughout the country. They are listed in the (MLS) Multiple Listing Service.
You will notice many similarities between Freddie Mac and Fannie Mae.
Any individual can buy a property from Freddie Mac and this includes owner occupants and non-owner occupants.
The first step is to get pre-qualified by a bank or other lender. After this has been documented any licensed real estate agent can write up an offer. The will submit to the listing broker who will submit to Freddie Mac.
There role is to operate only in the secondary mortgage market by issuing mortgage backed securities to large investors.
If you have read both articles concerning Fannie Mae and Freddie Mac you will note similarities. Each one offers many opportunities to make a profit. Analyze all details carefully and seek professional advice.
