What Is Freddie Mac?
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Freddie Mac was chartered by Congress to provide liquidity, stability and affordability to the mortgage market. Like Fannie Mae, Freddie Mac provides liquidity to banks, and mortgage companies that make home purchase and refinance loans available to consumers.
Freddie Mac buys mortgages from lenders and holds them in their portfolios or packages them into mortgage-backed securities (MBS) which can be sold. Lenders who have sold mortgages to Freddie Mac are then able to use that cash to lend to other consumers. Conventional loans in Southern California which are backed by Freddie Mac, are available through Orange County based Summit Lending.