the federal home loan mortgage corp fhlmc or freddie mac is a stockholder owned government sponsored enterprise gse chartered by congress in 1970 to keep money flowing to mortgage lenders which in turn supports homeownership and rental housing for middle income americans 
freddie mac purchases guarantees and securitizes home loans and is a mainstay of the secondary mortgage market 1history of freddie macfreddie mac was created when congress passed the emergency home finance act in 1970 a wholly owned subsidiary of the federal home loan bank system fhlbs it represented an attempt to reduce interest rate risk for savings and loans associations and smaller banks in 1989 under the financial institutions reform recovery and enforcement act firrea freddie mac underwent a reorganization it became a publicly owned company with shares that could trade on the new york stock exchange 2in 2008 during the financial crisis sparked by the subprime mortgage meltdown the u s government specifically the federal housing finance agency took over the federal home loan mortgage corp though freddie mac is gradually transitioning toward independence it remains under federal conservatorship 