Federal Home Loan Mortgage

Freddie Mac helps banks and lenders offer more home loans by buying mortgages. It turns these loans into securities, making it easier for people to buy or rent homes. This supports families, renters, and the broader housing market in the United States.

Mortgage Magic: What Freddie Mac Offers

• Single-Family Loan Purchases: Buys home loans from lenders, helping banks free up cash to make more loans.
• Mortgage-Backed Securities: Bundles home loans into securities sold to investors, spreading risk and increasing market liquidity.
• Credit Risk Transfer Products: Sells part of the risk on its mortgage guarantees to private investors, reducing exposure to defaults.
• Multifamily Loan Purchases: Buys and guarantees loans for apartment buildings, supporting affordable rental housing.
• Affordable Housing Programs: Offers special loan programs for first-time buyers and low-income families, such as Home Possible and Home One.

Growth Spurts and Strategic Moves

• Expanded credit risk transfer programs (STACR, ACIS, MCIP, MSCR) since 2013 to shift risk to private investors.
• Launched affordable housing initiatives, including Home Possible and Refi Possible, with major expansions in 2022 and 2023.
• Increased multifamily loan purchases by 35% in 2024, focusing on affordable rental housing.
• Adopted new appraisal waiver and second-lien mortgage pilot programs in 2024 to streamline loan processes.
• Operates under Federal Housing Finance Agency oversight since 2008, shaping all major business decisions.

Freddie’s Secret Sauce: What Sets It Apart

Freddie Mac’s government charter lets it provide steady support to the U.S. housing market, even during economic stress. Its risk transfer programs move much of the mortgage default risk to private investors, protecting its balance sheet. The company’s focus on affordable housing and strict regulatory oversight shape its unique role in the market.

Five Things You Need to Know

• Net revenues were $23.9 billion in 2024, up 13% from 2023.
• Net income reached $11.9 billion in 2024, a 13% increase year-over-year.
• Single-family loans made up 87% of the $3.6 trillion mortgage portfolio in 2024.
• Multifamily new business activity was $65.1 billion in 2024, up 35% from 2023.

Bottom Line

Freddie Mac has evolved by expanding risk-sharing, supporting affordable housing, and adapting to regulatory changes. Its business model centers on providing liquidity and stability to the U.S. housing market.