Freddie Mac:
Freddie Mac (Federal Home Loan Mortgage Corporation) is a
shareholder owned, publicly traded corporation which buys mortgage loans
from lending institutions. It then pools the loans with other mortgage loans
and sells them to investors.
Even though the initial loan may have been made at a savings and loan, it
is the investor who ends up holding the mortgage.
Freddie Mac is also referred to as FHLMC.
Freddie Mac's mortgage backed securities do not enjoy the full faith and
credit of the U. S. government. For that guarantee, you'll have to invest in
Ginnie Maes. The ticker symbol for Freddie Mac's stock is FRE.
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