Our Business
America relies on Freddie Mac to support the housing market in all economic environments.
Operating in the secondary mortgage market, we buy conforming mortgage loans from approved lenders and then securitize those loans for sale to investors. This shifts a significant portion of the liquidity and interest-rate risk to third-party investors.
We conduct business through two business segments, the single-family business segment and the multifamily business segment. Those two segments are primarily supported by our Single-Family Division, Multifamily Division and Capital Markets Division.
Single-Family Business
We work with lenders of all sizes – national, regional and community lenders and credit unions – to buy conventional, conforming mortgage loans for one- to four-unit homes, including condominiums and manufactured homes.
Because lenders know they can sell loans to us, they are more willing to make long-term, fixed-rate loans, which make mortgage payments more affordable to more households.
Multifamily Business
Working with a network of specialized lenders, Freddie Mac provides funding for loans on properties ranging from five units to hundreds of units across multiple buildings. We support all types of multifamily properties nationwide, including conventional, seniors, student and subsidized housing, as well as smaller properties and manufactured housing communities.
Our funding is vital to supporting the creation and preservation of rental housing across the country. Multifamily borrowers mainly are commercial entities, such as property developers, and the properties are considered businesses.
Learn more about working with our Multifamily Division.
Capital Markets
We promote liquidity and make funding more available to borrowers by packaging mortgage-related securities, guaranteed by Freddie Mac and other financial institutions, as investments. We fund these investments by issuing corporate debt securities.
Freddie Mac’s investors include but are not limited to central and commercial banks, pension funds, insurance companies and securities dealers from around the world.