A Government-Sponsored Enterprise (GSE) nicknamed Freddie Mac that buys qualifying residential mortgages, packages them into new securities, and resells them on the open market.
The Federal Housing Finance Agency (FHFA) is a U.S. government agency established in 2008 under the Housing and Economic Recovery Act to oversee housing-related Government-Sponsored Enterprises (GSEs). The agency has enhanced powers for enforcement and regulation.
Freddie Mac, officially known as the Federal Home Loan Mortgage Corporation (FHLMC), is a government-sponsored enterprise designed to expand the secondary market for mortgages in the United States.
A Government-Sponsored Enterprise (GSE) is a financial services corporation created by the United States Congress. Their purpose is to enhance the flow of credit to specific sectors of the American economy and to make those segments more efficient and transparent. Two prominent GSEs are the Federal National Mortgage Association (FNMA), commonly known as Fannie Mae, and the Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac.
The Housing and Economic Recovery Act of 2008 was legislation passed to address the subprime housing crisis by creating a new regulator for housing-related Government-Sponsored Enterprises (GSEs) and granting enhanced powers to enforce standards and restrictions on these entities.
A Jumbo Mortgage is a loan for an amount exceeding the statutory limit placed on the size of loans that Freddie Mac and Fannie Mae can purchase. These loans must be maintained in the lender's portfolio or sold to private investors rather than Fannie or Freddie. Often associated with the purchase of luxury homes, jumbo mortgages differ from conforming loans.
