A few weeks ago, we went over “Who is Fannie Mae?” But it raises a second question, “Who is Freddie Mac?” Read below for Freddie Mac’s company description and affect it has specifically in California.
Company Profile
Freddie Mac was chartered by Congress in 1970 with a public mission to stabilize the nation’s residential mortgage markets and expand opportunities for homeownership and affordable rental housing. Our statutory mission is to provide liquidity, stability and affordability to the U.S. housing market.
We participate in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities, principally those we call PCs. The secondary mortgage market consists of institutions engaged in buying and selling mortgages in the form of whole loans (i.e., mortgages that have not been securitized) and mortgage-related securities. We do not lend money directly to homeowners.
Their Business
In 1970, Congress created Freddie Mac with a few important goals in mind:
- Make sure that financial institutions have mortgage money to lend
- Make it easier for consumers to afford a decent house or apartment
- Stabilize residential mortgage markets in times of financial crisis
To fulfill this mission, Freddie Mac conducts business in the U.S. secondary mortgage market – meaning we do not originate loans – and works with a national network of mortgage lending customers. We have three business lines: a Single Family Credit Guarantee business for home loans; a Multifamily business for apartment financing; and an investment portfolio.
- Single-Family Credit Guarantee Business
- Multifamily Business
- Investment Business
In California
Financing Homeownership & Rental Housing in California
One of Freddie Mac’s key priorities is providing constant, stable support to the housing market. Since we were created, we’ve continued to supply an ongoing stream of funding for mortgages, every day, in all geographic markets, and in good times and bad. Over the past decade, Freddie Mac has invested approximately $857.3 billion in home loans, helping 4,388,611 families in California own or rent a home.
In the first half of 2011, Freddie Mac:
- Enabled 8,571 homebuyers in California to purchase their first home.
- Financed loans for 8,862 low income families in California.
- Funded home loans with an average mortgage of $283,835
Preventing Foreclosure in California
Foreclosure prevention remains one of Freddie Mac’s top priorities. Since the housing crisis began, our efforts through our own foreclosure avoidance programs and the Administration’s Home Affordable Modification program (HAMP), have helped over half a million families facing financial hardship to keep their homes or sell their properties. In California alone, we have completed 87,954 loan workouts, which helped these families avoid foreclosure.
Homes for Sale in Newport Beach
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