Freddie Mac

What Freddie Mac does

Freddie Mac is a U.S. government-sponsored enterprise (GSE) chartered by Congress in 1970 that operates in the secondary mortgage market. Rather than lending directly to borrowers, it purchases residential mortgages from approved lenders (banks, credit unions, and mortgage companies), pools them into mortgage-backed securities (MBS), guarantees those securities, and sells them to global institutional investors. Together with Fannie Mae, the two GSEs own or guarantee approximately 70% of the U.S. mortgage market. Freddie Mac has operated under Federal Housing Finance Agency (FHFA) conservatorship since September 2008 and trades publicly on OTC markets under ticker FMCC. As of Q1 2026, the company reported a $3.7 trillion mortgage portfolio, net worth of approximately $74 billion, Q1 net revenues of $6.1 billion, and Q1 net income of $3.6 billion (up 27% year-over-year), though a ~$105 billion regulatory capital shortfall persists.

The company operates through Single-Family and Multifamily divisions, supported by a Capital Markets unit. Core technology and product platforms include: the Primary Mortgage Market Survey (PMMS), the industry-benchmark weekly mortgage rate index; Loan Product Advisor and the AIM Check API, which deliver automated underwriting and income validation to lenders; the Single-Family Loan-Level Dataset, a comprehensive research repository; and credit risk transfer programs including STACR (Structured Agency Credit Risk) notes, SCRT seasoned-loan securitizations, SLST seasoned-loan trusts, and FREMF multifamily CMBS. The company also publishes the AI/ML Governance Framework governing seller/servicer model risk practices and recently adopted VantageScore 4.0 as an alternative credit scoring model. Sub-brands include My Home by Freddie Mac (consumer portal), CreditSmart (financial education), and HomeSteps (REO disposition).

Freddie Mac serves a two-sided market. On the supply side, lenders and seller-servicers originate mortgages and sell them to Freddie Mac to replenish capital and transfer credit risk. On the demand side, global institutional investors (pension funds, mutual funds, insurance companies, banks) purchase Freddie Mac-guaranteed MBS for stable, government-backed yield. Customer segments include single-family borrowers (indirect, via lenders), multifamily property owners and developers, lenders and seller-servicers, and institutional investors. Revenue is generated through guarantee fees (subscription/recurring, charged over the life of the loan) and securities issuance spreads (transaction fees). The company is headquartered in McLean, Virginia, with regional offices in Atlanta, Chicago, Dallas, Irvine, and Jersey City.

Name

Freddie Mac

Legal name

Federal Home Loan Mortgage Corporation

Website

https://freddiemac.com

Company type

Public

Founded year

1970

Operating status

Operating

Headcount range

5,001–10,000 employees

Short description

Freddie Mac is a U.S. government-sponsored enterprise that operates in the secondary mortgage market, purchasing residential mortgages from approved lenders, pooling them into guaranteed mortgage-backed securities, and selling those securities to global institutional investors. It serves lenders, multifamily developers, and investors alongside Fannie Mae.

Ownership category

akta.pro rank

Product category

Mortgage Finance (Secondary Mortgage Market)

NAICS

Funds, Trusts, and Other Financial Vehicles (525)

SIC

Mortgage Bankers & Loan Correspondents (6162), Asset-Backed Securities (6189), Security Brokers, Dealers & Flotation Companies (6211)

akta.pro primary industry

Government-Sponsored Enterprises (GSEs) & Government Mortgage Liquidity Providers (FSALAKAC)

akta.pro secondary industries

Agency MBS Securitization & Issuance (GSE/Ginnie) (FSALAFAA), Mortgage-Backed Securities (MBS) Trading, Market Making & Liquidity Provision (FSALAFAF), Mortgage-Backed Securities (RMBS/CMBS) (FSACACAB), Agency (GSE) Multifamily Lending (FSALADAD), Mortgage Secondary Data, Analytics & Pricing/Valuation Services (FSALAFAN)

Keywords

• Secondary mortgage market
• Mortgage-backed securities
• Multifamily housing finance
• Credit risk transfer
• Automated mortgage underwriting

Headquarters

HQ city

Mclean

HQ country

United States

HQ region

North America

Offices10 records

Markets served

GTM type

B2B

Offering type

Services

Cost components

Personnel, Technology or R&D, Operations, Infrastructure, Others

Revenue model

1. Guarantee Fees: Freddie Mac generates revenue by charging management and guarantee fees for accepting and managing the risks associated with mortgages it purchases and guarantees. These fees are collected from lenders and borrowers over the life of the loans.
2. Securities Issuance: Freddie Mac pools mortgages into mortgage-backed securities (MBS) and sells them to global investors including pension funds, mutual funds, insurance companies, and banks. Revenue is generated through the spread between guaranteed securities and the underlying mortgage assets.

Pricing tiers

Go-to-market motion1 record

Distribution channels4 records

Marketing channels10 records

Core offering

Freddie Mac is a government-sponsored enterprise (GSE) that operates in the U.S. secondary mortgage market, purchasing single-family and multifamily mortgages from approved lenders (sellers/servicers), pooling them into mortgage-backed securities (MBS), guaranteeing the securities, and selling them to global institutional investors. The company does not lend directly to consumers; it provides liquidity, stability, and affordability to the housing finance system through securitization, credit risk transfer programs (STACR, SCRT, SLST), and automated underwriting technology (Loan Product Advisor, AIM Check).

Product overview

Freddie Mac is a government-sponsored enterprise that operates two primary business segments — Single-Family and Multifamily — providing liquidity, stability, and affordability to the U.S. housing market under all economic conditions. Rather than lending directly to borrowers, Freddie Mac operates in the secondary mortgage market, purchasing loans from approved lenders, securitizing them, and selling mortgage-backed securities to global investors. The Single-Family Division is the core business, handling residential mortgage purchases and securitization through programs including SLST (Seasoned Loan Securitization Trust) and STACR (credit risk transfer), while the AIM Check / Loan Product Advisor system provides automated underwriting and loan quality validation for lenders. The Multifamily Division provides financing for apartment buildings via its CMBS program (FREMF) and competes with debt funds on near-stabilized assets. Freddie Mac also publishes the Primary Mortgage Market Survey (PMMS), the industry's standard weekly benchmark for mortgage rates, and serves consumers directly through My Home by Freddie Mac (homebuyer education and tools) and CreditSmart (financial literacy resources). In 2026, Freddie Mac expanded its technology offerings by adopting VantageScore 4.0 as an alternative credit scoring model for mortgage underwriting, the first major update to GSE credit scoring in decades.

Differentiator

Problem solved

Functional benefit

Brands

• My Home by Freddie Mac: Resources and tools for renters, buyers, and owners to help navigate homeownership journey
• CreditSmart
• HomeSteps

Products and services

• Single-Family Mortgage Purchase & Securitization Freddie Mac's primary business segment for purchasing, securitizing, and guaranteeing single-family (1-4 unit) residential mortgages originated by approved lenders. Provides lenders with capital replenishment and risk transfer while enabling a continuous flow of mortgage funds to U.S. homebuyers.
• Multifamily Loan Financing Financing for apartment buildings and other multifamily rental properties through Freddie Mac's Multifamily Division, including standardized loan products, lease-up programs, and Sponsor-Dedicated Workforce products. FHFA caps multifamily originations at $88 billion per agency per year.
• Primary Mortgage Market Survey (PMMS) Freddie Mac's flagship weekly survey of average U.S. mortgage rates, serving as the industry-standard benchmark for mortgage pricing and homebuyer reference.
• Loan Product Advisor / AIM Check Automated underwriting system enabling lenders to evaluate borrower credit, income, and loan eligibility. AIM Check API provides automated income validation for W-2 borrowers with integration into lender loan origination systems.
• STACR (Structured Agency Credit Risk) Notes Credit risk transfer securities that shift mortgage credit risk from Freddie Mac's portfolio to private capital markets investors through structured notes tied to reference pools of residential mortgages.
• SCRT (Seasoned Credit Risk Transfer Trust) Securitization program for seasoned re-performing mortgage loans, issuing guaranteed senior certificates and non-guaranteed subordinate securities to investors while shedding credit and market risk from Freddie Mac's investment portfolio.
• SLST (Seasoned Loan Securitization Trust) Program for securitizing seasoned mortgage loans (both re-performing and non-performing) into guaranteed senior and non-guaranteed subordinate securities for institutional investors.
• FREMF (Freddie Mac Multifamily) CMBS Commercial mortgage-backed securities program for multifamily loans, packaging pools into rated CMBS transactions guaranteed by Freddie Mac to provide financing for apartment communities across the U.S.
• My Home by Freddie Mac Consumer-facing digital platform with calculators, checklists, educational content, and lookup tools (Loan Lookup, Rental Lookup) for renters, buyers, owners, and refinancers navigating the housing journey.
• CreditSmart Free online financial and homeownership education program in English and Spanish covering credit basics, home buying, wealth building, and financial resilience.
• VantageScore 4.0 Adoption for Mortgage Underwriting Adoption of VantageScore 4.0 as an alternative credit scoring model for mortgage underwriting, incorporating rent and utility payment history and trended credit data to expand access to homeownership for historically underserved borrowers.

Quantifiable outcome

• Freddie Mac securitized over $78 billion of seasoned re-performing loan assets to date
• +2 more outcomes

Named customers7 records

Segments4 records

Ideal customer profiles3 records

Technology focussed Yes

API detail

Has API

Yes

API docs

API detail

Core technology

AI maturity

App detail

Integration2 records

AI capability3 records

Feature5 records

Partnerships

Four partnerships are on record, tiered minor.

• BerkadiaminorChannel Partner/ Reseller/ Distributor · 9 June 2026Berkadia arranged $35.2 million refinancing for Indian Lake Village Apartments, with the loan purchased by Freddie Mac on behalf of sponsor Fenton Management Company.
• Luminate BankminorStrategic or Co-development Partner · 20 May 2026Luminate Bank received two Freddie Mac Home Possible RISE Awards for 2026, recognizing excellence in helping low-income borrowers access affordable home financing through Home Possible and HFA Advantage mortgages.
• Linc HousingminorStrategic or Co-development Partner · 14 May 2026Linc Housing and American Family Housing opened Azure, an 89-unit supportive housing community in Anaheim, California, partially funded through Freddie Mac financing as part of California's Project Homekey program.
• American Family HousingminorStrategic or Co-development Partner · 14 May 2026Non-profit housing developer partnered with Linc Housing on Azure supportive housing project, with Freddie Mac providing financing as part of the Project Homekey initiative.

Scale indicators12 records

Recent moves6 records

Expansion highlights5 records

Direct peers

• Fannie Mae: The other US government-sponsored enterprise operating in the secondary mortgage market, jointly guaranteeing roughly 70% of US mortgages with Freddie Mac and running parallel Single-Family and Multifamily divisions with nearly identical business models.
• Ginnie Mae: A US government agency within HUD that guarantees mortgage-backed securities backed by FHA, VA, and USDA loans, operating as a direct parallel to Freddie Mac in agency MBS issuance and securitization.
• Federal Home Loan Banks (FHLBank System): A network of US government-sponsored enterprises providing liquidity to member banks through advances and letter of credit, serving a complementary housing-finance role alongside Freddie Mac within the GSE framework.

Broad incumbents

• JPMorgan Chase: One of the largest US mortgage originators and a major institutional investor in agency MBS, with significant overlap in lender/seller relationships and a broad balance sheet competing across the housing finance value chain.
• Wells Fargo: Top-tier US mortgage originator and one of the largest sellers/servicers to Freddie Mac, also issuing CMBS and structured products — overlapping heavily with Freddie Mac on both the origination and securitization sides.

Emerging players

• Rocket Mortgage: The largest US mortgage originator with a direct-to-consumer model, serving as a major seller of loans into the GSE secondary market and increasingly competing on technology and borrower experience.
• United Wholesale Mortgage: The largest wholesale mortgage lender in the US, focused exclusively on the broker channel, supplying significant loan volume to GSEs including Freddie Mac and competing on speed and broker experience.
• PennyMac Financial Services: A major US mortgage lender and servicer focused on agency conforming loans, with significant business tied to GSE securitization including Freddie Mac's program.
• Mr. Cooper: One of the largest US mortgage servicers and active originators, with substantial servicing exposure to Freddie Mac-owned loans and overlap in loan aggregation and securitization.

Others

• ICE Mortgage Technology (Black Knight): Leading provider of mortgage technology infrastructure used by lenders selling loans to Freddie Mac, including loan origination systems, servicing platforms, and data — a key enabling partner in the GSE ecosystem.

Market position

Strengths5 records

Weaknesses4 records

Competitive moat6 records

Key risks6 records

Key highlights7 records

Customer concentration

• Xx.com/freddiemac
• YouTubeyoutube.com/user/FreddieMac
• Facebookfacebook.com/FreddieMac
• LinkedInlinkedin.com/company/freddie-mac

Revenue estimate

Valuation estimate

Number of profiles

Profiles10 records

Funding overview

Funding rounds8 records

Investors1 record

Funding detail is available on the Subscription and Enterprise plan.Contact sales →

M&A

Investments8 records

M&A and investment is available on the Subscription and Enterprise plan.Contact sales →

Frequently asked questions about Freddie Mac