What is Freddie Mac?

The Federal Home Loan Mortgage Corporation (FHLMC), commonly known as Freddie Mac, is a government-sponsored enterprise (GSE) created in 1970 to expand the secondary mortgage market in the United States. Along with Fannie Mae, 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 increases the supply of money available for mortgage lending, as well as the liquidity available for new home purchases.