Freddie Mac

Freddie Mac, formally known as the Federal Home Loan Mortgage Corporation, is a U.S. government–sponsored enterprise headquartered in McLean, Virginia, with more than 5,000 employees as of the end of 2015. Funding almost 25% of the U.S. mortgage market, it is one of the largest sources of residential mortgage financing in the United States, established by the U.S. Congress in 1970 with the specific public mission to provide liquidity, stability, and affordability to the U.S. housing market. Freddie Mac’s equity deficit [Page 1483]following the 2008 subprime mortgage crisis resulted in what has become one of the largest corporate bailouts in American history, illustrating the company’s societal significance. The company has continued to operate under government conservatorship ever since.

Freddie Mac’s mission is to ensure that financial ...