Freddie Mac (Federal Home Loan Mortgage Corporation) is a government-sponsored enterprise (GSE) that buys mortgages on the secondary market, pools them, and sells them as mortgage-backed securities (MBS) to investors. This increases the supply of money available for mortgage lending and home purchases. Freddie Mac helps to make mortgages more accessible and affordable for homebuyers. It also plays a role in standardizing mortgage lending practices.
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