Freddie Mac
Freddie Mac (Federal Home Loan Mortgage Corporation) is a government-sponsored enterprise that purchases and securitizes conventional mortgage loans, providing stability and liquidity to the housing market.
Like Fannie Mae, Freddie Mac buys loans from lenders after closing, allowing those lenders to reinvest capital into new loans. Freddie Mac sets its own underwriting guidelines, which closely mirror — but are not always identical to — Fannie Mae's standards.
Freddie Mac does not lend directly to consumers. Borrowers do not choose between Fannie Mae and Freddie Mac — the lender determines which entity will purchase the loan based on pricing, eligibility, and program guidelines.
Why This Matters: Freddie Mac and Fannie Mae together support the majority of conventional lending in the United States. Understanding their role helps you see why mortgage guidelines exist and how the system is designed to keep lending stable.
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