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Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac) CA Real VocabUBee.com

Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac)

organization to create secondary mortgage market

The Federal Home Loan Mortgage Corporation (FHLMC) or Freddie Mac is a government-sponsored enterprise (GSE). A GSE is a congressionally-chartered, shareholder-owned corporation. Freddie Mac was created to provide liquidity for home ownership by purchasing mortgages originated by thrifts through what is called the secondary mortgage market. Freddie Mac purchases and “securitizes” or packages or pools the mortgages made by thrift originators so that large investors like insurance companies can purchase the packaged mortgages as investments. Freddie Mac is a government-sponsored, shareholder-owned corporation which supports the secondary mortgage market by buying mortgages, packaging mortgages and selling those packages as investments to large investors like insurance companies.

Multiple Choice Question

Federal Home Loan Mortgage Corporation (FHLMC, Freddie Mac)
A loan originator you or I might go to for a first trust deed
B owned spaces and common spaces regulated by CC&R’s
C person who made mortgages like going to McDonald’s
D organization to create secondary mortgage market

Correct Answer: d

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This word appears in the book Vocab-U-Bee California CA Real Estate License Exam Top Pass Words

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