Posted on: 27th May, 2005 02:51 am
FHLMC (Federal Home Loan Mortgage Corporation) is a corporation authorized by congress. It is a quasi-governmental agency that purchases-
- Conventional home mortgages in the secondary mortgage market from insured depository institutions and HUD-approved mortgage bankers.
- Residential mortgages insured by the Federal Housing Administration or guaranteed by the Veterans Administration (VA).
Apart from what Sam has mentioned, there are few other things that I would like to share about Federal Home Loan Mortgage Corporation or Freddie Mac.
Freddie Mac's main aim is necessarily to provide stability, affordability and liquidity to the housing market in US. The foundation of their business goals was laid down in the 1970 charter by the Congress through the Federal Home Loan Mortgage Corporation Act.
Freddie Mac mainly works towards making the US mortgage market stable & liquid. It also provides people with opportunity of homeownership and affordable rental housing.
Freddie Mac's main aim is necessarily to provide stability, affordability and liquidity to the housing market in US. The foundation of their business goals was laid down in the 1970 charter by the Congress through the Federal Home Loan Mortgage Corporation Act.
Freddie Mac mainly works towards making the US mortgage market stable & liquid. It also provides people with opportunity of homeownership and affordable rental housing.
Hi, I wanted to know if Freddie Mac is regulated under any government act.
L_Benecke
L_Benecke
Hi Benecke,
Welcome to Mortgagefit discussion board.
A regulatory oversight structure was created using FHEFSSA (Federal Housing Enterprises Financial Safety and Soundness Act) of 1992 for entities like Freddie Mac, which is a government sponsored entity (GSE). It addresses two of the functions of the GSEs, i.e., their safety plus soundness & housing mission.
The housing mission of GSEs such as Freddie Mac is supervised by HUD. For the years 2005 to 2008 the affordable housing goal levels for GSEs has been established by HUD which became effective from January 1, 2005.
Do let me know if you have any other doubts.
Thanks
Blue
Welcome to Mortgagefit discussion board.
A regulatory oversight structure was created using FHEFSSA (Federal Housing Enterprises Financial Safety and Soundness Act) of 1992 for entities like Freddie Mac, which is a government sponsored entity (GSE). It addresses two of the functions of the GSEs, i.e., their safety plus soundness & housing mission.
The housing mission of GSEs such as Freddie Mac is supervised by HUD. For the years 2005 to 2008 the affordable housing goal levels for GSEs has been established by HUD which became effective from January 1, 2005.
Do let me know if you have any other doubts.
Thanks
Blue
Let me give you some more details about the affordable housing goal levels Blue mentioned.
As per these goals the GSEs are required to support financing of low income family housing as a certain percentage of the mortgages they purchase.
The other function of GSEs which is regulated is safety & soundness. And the responsibility of regulating it is on Office of Federal Housing Enterprise Oversight (OFHEO). The capital standards for Freddie Mac are implemented, monitored and enforced by OFHEO.
David
As per these goals the GSEs are required to support financing of low income family housing as a certain percentage of the mortgages they purchase.
The other function of GSEs which is regulated is safety & soundness. And the responsibility of regulating it is on Office of Federal Housing Enterprise Oversight (OFHEO). The capital standards for Freddie Mac are implemented, monitored and enforced by OFHEO.
David
thanks for all the inputs, one another thing, is it a government agency?
No L_Benecke, it is not. It was chartered as a private company by the Congress. It is not an agency of the Federal or any of the state governments and also doesn't receive any funds from the federal government.