Freddie Mac
Freddie Mac provides liquidity and stability to the U.S. rental housing market and supports responsible homeownership through its Multifamily and Single-Family Divisions.
Services
Freddie Mac provides a range of services aimed at enhancing liquidity, stability, and affordability in the housing market. Through its Multifamily Division, the company finances rental housing, ensuring that approximately 90 percent of financed apartments are affordable for low- to moderate-income renters. In addition, Freddie Mac supports responsible, sustainable homeownership via its Single-Family Division. The company also offers financial and homeownership education resources through CreditSmart®, and has a lookup tool that allows users to find out if Freddie Mac owns a loan or financed an apartment building.
Products
Freddie Mac offers a variety of loan products to support different housing needs. These products include conventional loans, targeted affordable loans, small balance loans, student housing loans, and seniors housing loans. The company provides funding for diverse property types, ranging from buildings with five units to large properties with hundreds of units. By offering these varied financial products, Freddie Mac plays a significant role in supporting affordable housing and homeownership across the United States.
Credit Risk Transfer
Freddie Mac engages in credit risk transfer strategies to manage risk and promote financial stability. The company shifts a significant portion of the credit risk associated with its loans to private investors. This mechanism helps mitigate potential losses for Freddie Mac, while allowing private investors to participate in the U.S. housing market. The strategy contributes to the overall resilience of the financial system by diversifying risk exposure.
Affordable Rental Opportunities
Freddie Mac supports affordable rental opportunities nationwide through its multifaceted financing programs. The company's Multifamily Division actively finances rental housing, ensuring that nearly 90 percent of the apartments they finance are affordable for individuals and families with low to moderate incomes. This commitment to affordability helps to bridge the gap in the rental housing market, making quality housing accessible to more people.
Homeownership Education Resources
Through its CreditSmart® platform, Freddie Mac offers comprehensive financial and homeownership education resources. These resources are designed to empower individuals with the knowledge and skills needed for responsible and sustainable homeownership. The CreditSmart® program provides guidance on a variety of financial topics, including credit management and the home purchasing process, helping potential homeowners make informed decisions.