fhlmc (Meaning)
fhlmc (n)
a corporation authorized by Congress to provide a secondary market for residential mortgages
Synonyms & Antonyms of fhlmc
No Synonyms and anytonyms found
fhlmc Sentence Examples
- The Federal Home Loan Mortgage Corporation (FHLMC), also known as Freddie Mac, is a government-sponsored enterprise that plays a vital role in the US housing market.
- FHLMC was created in 1970 to provide liquidity to the secondary mortgage market, which enabled lenders to sell mortgages to investors, making it easier for consumers to obtain home loans.
- FHLMC purchases mortgages from lenders, bundles them into mortgage-backed securities (MBS), and sells them to investors, thereby creating a liquid market for mortgages.
- The MBS issued by FHLMC are considered safe investments due to the government's implicit guarantee, which provides a safety net to investors in case of mortgage defaults.
- FHLMC's mission is to expand the secondary mortgage market by increasing the availability and affordability of mortgage financing for homebuyers and homeowners.
- FHLMC also supports the housing market by issuing new guidelines and regulations, conducting research, and providing training and education to industry professionals.
- FHLMC along with Fannie Mae, another government-sponsored enterprise, plays a crucial role in keeping mortgage rates low and stable, which makes homeownership more attainable for many Americans.
- FHLMC's activities have a significant impact on the overall economy, as a stable housing market contributes to economic growth and stability.
- The government's conservatorship of FHLMC and Fannie Mae during the 2008 financial crisis played a pivotal role in preventing a complete collapse of the housing market.
- FHLMC continues to play a vital role in the US housing market, and its role is likely to remain significant in the years to come.
FAQs About the word fhlmc
a corporation authorized by Congress to provide a secondary market for residential mortgages
No synonyms found.
No antonyms found.
The Federal Home Loan Mortgage Corporation (FHLMC), also known as Freddie Mac, is a government-sponsored enterprise that plays a vital role in the US housing market.
FHLMC was created in 1970 to provide liquidity to the secondary mortgage market, which enabled lenders to sell mortgages to investors, making it easier for consumers to obtain home loans.
FHLMC purchases mortgages from lenders, bundles them into mortgage-backed securities (MBS), and sells them to investors, thereby creating a liquid market for mortgages.
The MBS issued by FHLMC are considered safe investments due to the government's implicit guarantee, which provides a safety net to investors in case of mortgage defaults.
