Freddie Mac

Freddie Mac, short for the Federal Home Loan Mortgage Corporation, is a publicly-traded, government-sponsored enterprise, headquartered in Tysons Corner, Virginia. It was chartered by Congress in 1970 to support the U.S. housing finance system and ensure a reliable and affordable supply of mortgage funds across the country. Rather than lending directly to borrowers, Freddie Mac operates in the U.S. secondary mortgage market, buying loans that meet its standards from approved lenders. The organization exists to make homeownership and housing more affordable, lowering barriers to accessing sustainable housing and advancing equity in housing.

In October 2021, Freddie Mac announced a $3 billion bond program to support affordable homeownership and serve historically underserved markets.

Freddie Mac failed its low-income refinance goal that was imposed by the Federal Housing Finance Agency (FHFA), in which 21% of its refinances had to be low-income. Freddie Mac only hit the 19.7% mark. Freddie Mac has missed its low and very low-income goals five times each since 2010. The new goal for 2022 has been increased to 26% by new FHFA Director Sandra Thompson.

Regarding home purchasing, home prices that have increased at historic rates led Freddie Mac to increase the limits of its loans to a record level for 2022. Its baseline conforming loan limit will be $647,200 in 2022 – nearly a $100,000 increase from last year. Higher-cost areas will have a new loan limit of $970,800, or 150% of the baseline loan limit. This represents the largest percentage increase and dollar increase in the history of the measurement going back to 1980.