What type of corporation is Freddie Mac?

Freddie Mac, officially known as the Federal Home Loan Mortgage Corporation, operates as a stockholder-owned for-profit corporation. This means it was created to support the mortgage market by providing liquidity, stability, and affordability in housing finance. While it was established by the government to help ensure that home mortgages are available, it is crucial to note that it was converted into a publicly traded company. This means that it has shareholders who own stakes in the corporation, which distinguishes it from government-owned or non-profit entities.

In the context of housing finance, Freddie Mac purchases mortgages from lenders and issues mortgage-backed securities. The funding it generates allows lenders to provide more loans to homebuyers, thus contributing to the overall health of the housing market. Understanding the structure and purpose of entities like Freddie Mac is vital for those involved in real estate, as it illustrates the intersection of public policy and the private sector in facilitating home ownership.