Federal Home Loan Mortgage Corporation (Freddie Mac)

What does Freddie Mac own?
Freddie Mac does not own consumer brands in the traditional sense. The company owns mortgage products and programs, including Home Possible, HomeOne, Loan Product Advisor, Freddie Mac Multifamily, CHOICERenovation, and CHOICEHome. These products are used by lenders to originate and securitize mortgages. Freddie Mac's total mortgage portfolio reached $3.7 trillion by mid-2026.

Is Freddie Mac publicly traded?
Freddie Mac's common stock (FMCC) and preferred stock trade on the OTC markets, but the company has been under FHFA conservatorship since 2008. The common and preferred shares have limited economic rights under conservatorship, and the U.S. Treasury's senior preferred stock takes priority. The stock is not listed on a major exchange like the NYSE or Nasdaq.

Who founded Freddie Mac?
Freddie Mac was not founded by an individual. It was created by the U.S. Congress through the Emergency Home Finance Act of 1970. The company was established to expand the secondary mortgage market and provide competition for Fannie Mae. Congress reorganized Freddie Mac as a shareholder-owned corporation in 1989 under FIRREA.

Where is Freddie Mac headquartered?
Freddie Mac is headquartered in McLean, Virginia, USA. The company has maintained its McLean headquarters since its early years. McLean is in Fairfax County, Virginia, near Washington, D.C., which is appropriate given Freddie Mac's status as a government-sponsored enterprise under federal oversight.

How many brands does Freddie Mac own?
Freddie Mac operates one core brand with multiple specialized product lines. These include Home Possible, HomeOne, Loan Product Advisor, Freddie Mac Multifamily, CHOICERenovation, and CHOICEHome. The company does not own a portfolio of distinct consumer brands because its customers are lenders, not consumers.

Who owns Freddie Mac?
Freddie Mac's ownership is complex. The company has been under conservatorship of the Federal Housing Finance Agency (FHFA) since September 2008. The U.S. Treasury holds senior preferred stock representing the government's financial stake. Common stock (FMCC) trades on OTC markets but has limited economic rights under conservatorship. The FHFA appoints the company's board of directors. William J. Pulte, Director of the FHFA, serves as Chairman of the Board.

What is Freddie Mac's net income?
In FY2025, Freddie Mac reported net income of $10.7 billion on net revenues of $23.3 billion. In Q2 2026, the company reported net income of $3.8 billion, up 61 percent year-over-year. The company's net worth reached $77.8 billion as of June 30, 2026.

What is the difference between Freddie Mac and Fannie Mae?
Freddie Mac (Federal Home Loan Mortgage Corporation, 1970) and Fannie Mae (Federal National Mortgage Association, 1938) are both GSEs that operate in the secondary mortgage market. Freddie Mac was originally created to purchase mortgages from savings institutions, while Fannie Mae primarily purchased mortgages from commercial banks. Today, both companies operate in similar markets and are under FHFA conservatorship since September 2008. Together they guarantee approximately 70 percent of new U.S. mortgage originations.

Freddie Mac was created by the U.S. Congress through the Emergency Home Finance Act of 1970. The Federal Home Loan Mortgage Corporation was established to expand the secondary mortgage market and increase competition with Fannie Mae, which had been privatized in 1968.

The original purpose was to purchase mortgages from savings institutions, known as thrifts, which were the primary mortgage lenders at the time. By buying mortgages from thrifts, Freddie Mac gave those institutions cash to make new loans, increasing the availability of mortgage credit.

In its early years, Freddie Mac was owned by the Federal Home Loan Bank System, which regulated savings institutions. The company operated primarily in the conventional mortgage market, purchasing mortgages that did not qualify for government insurance programs.

Freddie Mac pioneered the development of mortgage-backed securities in the 1970s. The company's first MBS, called a Participation Certificate, was issued in 1971. This innovation allowed investors to purchase interests in pools of mortgages, increasing the flow of capital into the housing market.

In 1989, Congress reorganized Freddie Mac as a shareholder-owned corporation under the Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA). The company's shares began trading on the New York Stock Exchange that same year.

Throughout the 1990s, Freddie Mac expanded its operations significantly. The company grew its mortgage portfolio and MBS guarantees, developed affordable housing products, and invested in technology to improve mortgage processing.

In 2003, Freddie Mac disclosed that it had understated earnings by approximately $5 billion over the previous three years due to accounting irregularities. The company restated its financial results, and senior executives resigned. This event is covered in the Controversy section below.

The 2000s brought increasing risk-taking. Freddie Mac purchased and guaranteed large volumes of higher-risk mortgages, including subprime and Alt-A loans, as it sought to maintain market share and meet affordable housing goals set by regulators.

When the U.S. housing market collapsed in 2007 and 2008, Freddie Mac suffered massive losses on its mortgage portfolio and MBS guarantees. The company's capital was insufficient to absorb these losses.

On September 7, 2008, the U.S. government placed Freddie Mac and Fannie Mae into conservatorship under the newly created Federal Housing Finance Agency. The U.S. Treasury committed to providing financial support to ensure the companies could continue operating. This event is covered in detail in the Controversy section.

Under conservatorship, Freddie Mac returned to profitability. The company has paid more than $120 billion to the U.S. Treasury through dividend payments on the senior preferred stock, exceeding the amount drawn from the Treasury during the bailout.

In recent years, Freddie Mac has focused on improving its automated underwriting system, expanding affordable housing programs, and managing credit risk through transfer transactions. The company's total mortgage portfolio reached $3.7 trillion by mid-2026.

Kenny Smith became CEO. Under his leadership, Freddie Mac has continued to emphasize affordable housing access, helping nearly 439,000 households buy, refinance, or rent a home in Q2 2026 alone, including 97,000 first-time homebuyers. Nearly 91 percent of the rental units and 54 percent of the single-family homes supported were affordable to families earning 120 percent or less of area median income.

The conservatorship remains in place as of August 2026. Various proposals have been debated in Congress to end the conservatorship and restructure the GSEs, but none have been enacted into law.

Freddie Mac has been at the center of several major controversies.

The 2003 accounting scandal was a significant early controversy. Freddie Mac disclosed that it had understated earnings by approximately $5 billion over three years due to accounting irregularities. The company's CEO and other senior executives were forced to resign. Freddie Mac paid significant fines and restated its financial results. The company settled with the Securities and Exchange Commission in 2007, agreeing to pay a $50 million civil penalty.

The 2008 conservatorship was the most significant event in Freddie Mac's history. The company's excessive risk-taking in the subprime mortgage market led to massive losses when the housing market collapsed. The U.S. government placed Freddie Mac into conservatorship on September 7, 2008, committing taxpayer funds to keep the company operating. Freddie Mac has since paid more than $120 billion to the Treasury through dividend payments, exceeding the amount drawn during the bailout.

The ongoing conservatorship has been controversial. Some argue that Freddie Mac should be privatized or restructured, while others argue that the current structure provides important stability to the housing market. Various reform proposals have been debated in Congress but none have been enacted.

Shareholders who held Freddie Mac stock before the conservatorship have pursued legal action against the government, arguing that the terms of the conservatorship unfairly deprived them of the value of their shares. These lawsuits have had mixed results in federal courts.