Freddie Mac

The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, is a public government-sponsored enterprise (GSE), headquartered in the Tyson's Corner CDP in unincorporated Fairfax County, Virginia.

The FHLMC was created in 1970 to expand the secondary market for mortgages in the US. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases. The name, "Freddie Mac", is an acronym of the company's full name that had been adopted officially for ease of identification (see "GSEs" below for other examples).

On September 7, 2008, Federal Housing Finance Agency (FHFA) director James B. Lockhart III announced he had put Fannie Mae and Freddie Mac under the conservatorship of the FHFA (see Federal takeover of Fannie Mae and Freddie Mac). The action has been described as "one of the most sweeping government interventions in private financial markets in decades".

Moody's gave Freddie Mac's preferred stock an investment grade rating of A1 until August 22, 2008, when Warren Buffett said publicly that both Freddie Mac and Fannie Mae had tried to attract him and others. Moody's changed the credit rating on that day to Baa3, the lowest investment grade credit rating. Freddie's senior debt credit rating remains Aaa/AAA from each of the major ratings agencies Moody's, S&P, and Fitch.

As of the start of the conservatorship, the United States Department of the Treasury had contracted to acquire US$1 billion in Freddie Mac senior preferred stock, paying at a rate of 10% per year, and the total investment may subsequently rise to as much as US$100 billion.

Home loan interest rates may go down as a result and owners of Freddie Mac debt and the Asian central banks who had increased their holdings in these bonds may be protected. Shares of Freddie Mac stock, however, plummeted to about one U.S. dollar on September 8, 2008, and dropped a further 50% on June 16, 2010, when the Federal Housing Finance Agency ordered the stocks delisted. In 2008, the yield on U.S Treasury securities rose in anticipation of increased U.S. federal debt.

For a comprehensive list of articles discussing Freddie Mac, see Fannie Mae and Freddie Mac: A Bibliography.

Read more about Freddie Mac:  History, Business

Other articles related to "freddie mac":

mae" class="article_title_2">Rick Davis (politics) - Controversies - Payments From Freddie Mac and Fannie Mae
... nearly $2 million dollars from Fannie Mae and Freddie Mac for consulting services ... again." McCarson also claims that "while he worked from 2000 to 2002, Fannie Mae and Freddie Mac together paid Mr ... Rick Davis' firm, Davis Manafort, had been paid $15,000 per month by Freddie Mac, for "consulting", from the end of 2005, when Davis stopped being head of the Homeownership Alliance, until August 2008 ...
Federal Takeover Of Fannie Mae And Freddie Mac - Ongoing Status of Fannie and Freddie Conservatorship
... Lockhart III presented his report, “The Present Condition and Future Status of Fannie Mae and Freddie Mac” ... accounted for 2.3% of single-family mortgages owned or guaranteed for Freddie Mac and 3.2% for Fannie Mae ... rate mortgages On September 24, 2012, a judge dismissed a class-action lawsuit that contended that Freddie Mac made misleading statements about its exposure to risky loans in the run-up to the ...
Freddie Mac - Company - Conservatorship
... Wikinews has related news Freddie Mac and Fannie Mae placed into US government conservatorship On September 7, 2008, Federal Housing Finance Agency (FHFA) Director James B ... financial analysis, assessments and statutory authority of the FHFA, he had placed Fannie Mae and Freddie Mac under the conservatorship of the FHFA ... the Federal government was planning to take over Fannie Mae and Freddie Mac and had met with their CEOs on short notice ...
David M. Moffett - Retirement
... Freddie Mac announced on March 2, 2009, that Moffett, its chief executive officer, had notified the chairman of the board of directors of his resignation from his position as chief executive and as a member of the ... he said, "I have enjoyed my time as CEO of Freddie Mac and I wish all the great employees the very best in the days to come." John Koskinen, chairman of the board, said "We are very sorry to see David go ... He made valuable contributions to Freddie Mac as the company transitioned into conservatorship." Koskinen also said, "We expect to name an interim CEO before March 13 to ...
Richard F. Syron
... officer of the Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac ... Thermo Electron as CEO in 1999, and moved to his post at Freddie Mac in 2003 ... In 2004, David Andrukonis, the chief risk officer of Freddie Mac, warned Syron of increasing risk in Freddie Mac's portfolio ...