![]() ![]() It became a publicly owned company, with shares that could trade on the New York Stock Exchange. In 1989, under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA), Freddie Mac underwent a reorganization. A wholly owned subsidiary of the Federal Home Loan Bank System (FHLBS), it represented an attempt to reduce interest rate risk for savings and loans associations and smaller banks. ![]() Some have argued that unchecked growth for Fannie Mae and Freddie Mac was a primary driver in what led to the credit crisis of 2008 that turned into the Great Recession.įreddie Mac was created when Congress passed the Emergency Home Finance Act in 1970.The main difference between them is that Fannie Mae buys mortgage loans from major retail or commercial banks, while Freddie Mac obtains its loans from smaller banks. Fannie Mae and Freddie Mac are both publicly traded GSEs.The role of Freddie Mac is to buy a large number of loans from mortgage lenders, then combine them and sell them as mortgage-backed securities. Additionally, FHFA is the Conservator of Fannie Mae and Freddie Mac.Freddie Mac is a stockholder-owned, government-sponsored enterprise (GSE) chartered by Congress in 1970 in support of homeownership for middle-income Americans.Freddie Mac is the officially recognized nickname for the Federal Home Loan Mortgage Corp. ![]()
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