THE ARCHITECT OF THE SECONDARY MORTGAGE MARKET
"Freddie Mac"
The nickname was coined, appropriately enough, in the market-place -- by the investors and lenders who do business with the Federal Home Loan Mortgage Corporation. Freddie Mac brings them together every day. And they have come to trust the Freddie Mac name because the corporation knows one business inside out: buying mortgages from lenders, pooling and packaging them into securities, and selling those securities to investors.
Freddie Mac, in fact, knows that business better than anyone else. Since its inception in 1970, it has purchased $145 billion in mortgages and issued $132 billion in mortgage securities. It is, by a wide margin, the leading seller of conventional mortgage securities.
That is why Freddie Mac's name has long been synonymous with experience and leadership in the secondary market for conventional mortgages. [Conventional mortgages are those not insured by the Federal Housing Administration (FHA) or guaranteed by the Veterans Administration (VA) of the US government.] To thousands of mortgage lenders, the Freddie Mac name represents a dependable source of liquidity and financial flexibility. And, to investors in the United States and abroad, the Freddie Mac name stands for highly liquid mortgage securities of proven safety and attractive yield.