# Freddie Mac

> American government-sponsored enterprise

**Wikidata**: [Q935969](https://www.wikidata.org/wiki/Q935969)  
**Wikipedia**: [English](https://en.wikipedia.org/wiki/Freddie_Mac)  
**Source**: https://4ort.xyz/entity/freddie-mac

## Summary
Freddie Mac is an American government-sponsored enterprise (GSE) that plays a critical role in the U.S. mortgage market. Established in 1970, it operates as the Federal Home Loan Mortgage Corporation, providing liquidity and stability to the housing finance system by purchasing and securitizing mortgage loans.

## Key Facts
- **Full Name**: Federal Home Loan Mortgage Corporation
- **Inception**: Founded in 1970
- **Headquarters**: McLean, Virginia, United States
- **Industry**: Financial services, specifically mortgage loans
- **Revenue (various years)**: $44 billion, $70.054 billion, $62.34 billion, $72.895 billion, $61.527 billion, $83.458 billion
- **Net Profit (various years)**: Ranged from -$21.553 billion to $48.668 billion
- **Total Assets (various years)**: $1.985 trillion, $2.049 trillion, $2.023 trillion
- **Employees**: Approximately 5,000 (varies between 4,957 and 5,000)
- **Website**: [freddiemac.com](http://www.freddiemac.com)
- **Classification**: Government-sponsored enterprise (GSE)
- **Related Entities**:
  - **Bank**: Financial institution accepting deposits (industry: bank operations)
  - **Business**: Organization engaged in commercial, industrial, or professional activities
  - **Financial Services**: Economic services provided by the finance industry
  - **Mortgage Loan**: Loans secured by real estate

## FAQs
**What is Freddie Mac's primary function?**
Freddie Mac purchases mortgage loans from lenders, packages them into mortgage-backed securities, and sells them to investors. This process provides liquidity to the mortgage market, enabling lenders to issue more loans.

**Where is Freddie Mac headquartered?**
Freddie Mac is headquartered in McLean, Virginia, a census-designated place in the United States.

**How does Freddie Mac differ from a traditional bank?**
While banks accept deposits and lend directly to consumers, Freddie Mac is a government-sponsored enterprise that does not take deposits. Instead, it operates in the secondary mortgage market, buying loans from lenders to free up capital for new mortgages.

**What is the significance of Freddie Mac's revenue and net profit figures?**
Freddie Mac's revenue and net profit figures reflect its financial performance over various years, with fluctuations due to market conditions, regulatory changes, and economic factors. For example, net profits have ranged from significant losses (e.g., -$21.553 billion) to substantial gains (e.g., $48.668 billion).

**How many employees does Freddie Mac have?**
Freddie Mac employs approximately 5,000 people, with figures varying slightly between 4,957 and 5,000.

## Why It Matters
Freddie Mac is a cornerstone of the U.S. housing finance system, ensuring that mortgage credit is widely available and affordable. By purchasing mortgages from lenders, it reduces risk for financial institutions, allowing them to offer more loans to homebuyers. This mechanism stabilizes the housing market, supports homeownership, and contributes to economic growth. Without Freddie Mac and similar GSEs, mortgage lending would be far more restrictive, potentially limiting access to homeownership for millions of Americans.

## Notable For
- **Government-Sponsored Enterprise (GSE) Status**: Operates under a congressional charter to support the mortgage market.
- **Secondary Mortgage Market Leadership**: One of the largest purchasers of mortgage loans in the U.S.
- **Financial Scale**: Manages total assets exceeding $2 trillion.
- **Market Stability**: Plays a critical role in maintaining liquidity during economic downturns.
- **Innovation in Mortgage Securitization**: Pioneered methods for bundling and selling mortgage-backed securities.

## Body

### Overview and Purpose
Freddie Mac, officially the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise (GSE) established in 1970. Its primary mission is to expand the secondary mortgage market by purchasing mortgage loans from banks and other lenders. This process allows lenders to replenish their funds and issue new loans, thereby increasing the availability of mortgage credit.

### History and Inception
- **Founding**: Created by Congress in 1970 to complement Fannie Mae (another GSE) and enhance competition in the secondary mortgage market.
- **Early Years**: Initially operated as a private corporation with a public mission, later becoming a key player in the housing finance system.

### Financial Performance
Freddie Mac's financial metrics highlight its scale and impact:
- **Revenue**: Reported revenues include $44 billion, $70.054 billion, $62.34 billion, $72.895 billion, $61.527 billion, and $83.458 billion across different years.
- **Net Profit**: Fluctuations reflect economic cycles, with notable figures such as -$21.553 billion (a significant loss) and $48.668 billion (a peak profit).
- **Total Assets**: Assets have exceeded $2 trillion, including $1.985 trillion, $2.049 trillion, and $2.023 trillion.

### Operational Structure
- **Headquarters**: Located in McLean, Virginia, a community in the United States.
- **Workforce**: Employs roughly 5,000 individuals, supporting operations in mortgage purchasing, securitization, and risk management.

### Role in the Mortgage Market
- **Mortgage Purchases**: Buys loans from lenders, providing them with capital to originate new mortgages.
- **Securitization**: Packages loans into mortgage-backed securities (MBS), which are sold to investors globally.
- **Risk Management**: Implements strategies to mitigate risks associated with mortgage defaults and market volatility.

### Relationships with Other Entities
- **Banks**: Works closely with financial institutions to facilitate mortgage lending.
- **Financial Services Industry**: Operates within the broader financial services sector, contributing to economic stability.
- **Mortgage Loans**: Specializes in loans secured by real estate, a core component of its business model.

### Regulatory and Economic Impact
- **Government Oversight**: As a GSE, Freddie Mac operates under regulatory supervision to ensure its activities align with public policy goals.
- **Housing Market Stability**: Helps stabilize the housing market by ensuring consistent mortgage availability, even during economic downturns.
- **Affordability**: Supports affordable housing initiatives by making mortgage credit accessible to a broader range of borrowers.

### Challenges and Controversies
- **Financial Crisis (2008)**: Faced significant losses during the housing market collapse, requiring government intervention and conservatorship.
- **Conservatorship**: Placed under the conservatorship of the Federal Housing Finance Agency (FHFA) in 2008, which continues to oversee its operations.

### Digital Presence
- **Website**: [freddiemac.com](http://www.freddiemac.com) serves as a resource for stakeholders, including lenders, investors, and homebuyers.

### Future Outlook
Freddie Mac remains a vital institution in the U.S. housing finance system. Its role in ensuring mortgage liquidity and affordability will continue to shape the housing market, particularly as regulatory and economic conditions evolve.

## References

1. [GRID](https://www.grid.ac/institutes/grid.467355.6)
2. Global LEI Index
3. GRID Release 2017-01-10
4. Virtual International Authority File
5. [Source](https://github.com/JohnMarkOckerbloom/ftl/blob/master/data/wikimap)
6. ROR release v1.19
7. Freebase Data Dumps. 2013
8. [Source](http://km.aifb.kit.edu/services/crunchbase/)
9. [Source](https://www.sec.gov/ix?doc=/Archives/edgar/data/1026214/000102621421000033/fmcc-20201231.htm)
10. [Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/1026214/000102621422000031/fmcc-20211231.htm)
11. [Form 10-K. 2023](https://www.sec.gov/Archives/edgar/data/0001026214/000102621423000037/fmcc-20221231.htm)
12. [Source](http://web.archive.org/web/20180218150533/https://www.sec.gov/Archives/edgar/data/1026214/000102621418000020/a20174q10k.htm)
13. [Form 10-K. 2012](https://www.sec.gov/Archives/edgar/data/0001026214/000102621412000039/f71787e10vk.htm)
14. [Form 10-K. 2013](https://www.sec.gov/Archives/edgar/data/0001026214/000119312513084154/d477952d10k.htm)
15. [Form 10-K. 2014](https://www.sec.gov/Archives/edgar/data/0001026214/000102621414000024/fmcc-2013x10k.htm)
16. [Form 10-K. 2015](https://www.sec.gov/Archives/edgar/data/0001026214/000102621415000015/a201410k.htm)
17. [Form 10-K. 2016](https://www.sec.gov/Archives/edgar/data/0001026214/000102621416000103/a201510k.htm)
18. [Form 10-K. 2017](https://www.sec.gov/Archives/edgar/data/0001026214/000102621417000018/a201610k.htm)
19. [Form 10-K. 2021](https://www.sec.gov/Archives/edgar/data/0001026214/000102621421000033/fmcc-20201231.htm)
20. [Form 10-K. 2022](https://www.sec.gov/Archives/edgar/data/0001026214/000102621422000031/fmcc-20211231.htm)
21. [Form 10-K. 2024](https://www.sec.gov/Archives/edgar/data/0001026214/000102621424000025/fmcc-20231231.htm)
22. [Form 10-K. 2025](https://www.sec.gov/Archives/edgar/data/0001026214/000102621425000040/fmcc-20241231.htm)
23. GRID Release 2016-12-06
24. [Freddie Mac Names Board Members. 2008](https://www.wsj.com/articles/SB123004191579729939)
25. [Top executives of Freddie Mac to step down. 2011](https://www.washingtonpost.com/business/economy/top-executives-of-freddie-mac-to-step-down/2011/10/26/gIQAWJ40JM_story.html)
26. [Laurence E. Hirsch: Pay Pals. HuffPost](https://data.huffingtonpost.com/paypals/laurence-e-hirsch)
27. [Freddie Mac](https://www.prnewswire.com/news-releases/freddie-mac-director-laurence-e-hirsch-will-not-seek-re-election-132485523.html)
28. [Source](https://freddiemac.gcs-web.com/news-releases/news-release-details/mark-h-bloom-join-freddie-mac-board-directors)
29. [Form 10-K](https://www.sec.gov/ix?doc=/Archives/edgar/data/1026214/000102621421000033/fmcc-20201231.htm)
30. [Source](https://freddiemac.gcs-web.com/news-releases/news-release-details/freddie-mac-announces-michael-j-devito-ceo)
31. [Source](https://freddiemac.gcs-web.com/news-releases/news-release-details/lance-f-drummond-elected-freddie-mac-board-directors)
32. [Source](https://freddiemac.gcs-web.com/news-releases/news-release-details/aleem-gillani-elected-freddie-mac-board-directors)
33. [Source](https://freddiemac.gcs-web.com/news-releases/news-release-details/christopher-e-herbert-elected-freddie-mac-board-directors)
34. [Source](https://freddiemac.gcs-web.com/news-releases/news-release-details/grace-huebscher-elected-freddie-mac-board-directors)
35. [Source](https://freddiemac.gcs-web.com/news-releases/news-release-details/alberto-g-musalem-join-freddie-mac-board-directors)
36. [Source](https://www.globenewswire.com/news-release/2022/02/10/2383195/0/en/Kevin-G-Chavers-and-Luke-S-Hayden-to-Join-Freddie-Mac-Board-of-Directors.html)
37. [Source](https://web.archive.org/web/20220215003751/https://www.globenewswire.com/news-release/2022/02/10/2383195/0/en/Kevin-G-Chavers-and-Luke-S-Hayden-to-Join-Freddie-Mac-Board-of-Directors.html)
38. Quora
39. [Source](https://www.sec.gov/edgar/browse/?CIK=1026214)
40. Microsoft Academic Knowledge Graph
41. Wikirate
42. [Internet Domains Wikibase](https://domains.wikibase.cloud/entity/Q137625)