What does the acronym Freddie Mac stand for?

What does the acronym Freddie Mac stand for?

• A. Federal Housing Authority
• B. Federal Home Loan Mortgage Corporation
• C. Fannie Mae
• D. Federal National Mortgage Association

Answer: (B)

Freddie Mac stands for the Federal Home Loan Mortgage Corporation. Established in 1970, Freddie Mac was created to expand the secondary mortgage market by securitizing mortgages, thereby providing liquidity, stability, and affordability to the housing market. By purchasing home loans from lenders and then selling them as mortgage-backed securities to investors, Freddie Mac plays a vital role in supporting the availability of mortgage credit. The other options do not accurately represent what Freddie Mac stands for. The Federal Housing Authority is commonly known as FHA, which insures loans made by approved lenders. Fannie Mae, or the Federal National Mortgage Association, is a separate entity that serves a similar purpose in the secondary mortgage market.

Freddie Mac stands for the Federal Home Loan Mortgage Corporation. Established in 1970, Freddie Mac was created to expand the secondary mortgage market by securitizing mortgages, thereby providing liquidity, stability, and affordability to the housing market. By purchasing home loans from lenders and then selling them as mortgage-backed securities to investors, Freddie Mac plays a vital role in supporting the availability of mortgage credit.

The other options do not accurately represent what Freddie Mac stands for. The Federal Housing Authority is commonly known as FHA, which insures loans made by approved lenders. Fannie Mae, or the Federal National Mortgage Association, is a separate entity that serves a similar purpose in the secondary mortgage market.