Credit gives the word to pay either by repaying it or returning those resources later. In other words, this credit is the method of making the reciprocity formal, legally enforceable, and of course, extensible to a vast group of people who are not related.
However, the resources provided may be financial or have goods or services, like consumer credit. The credit covers any form of deferred payment. Credit generally gets extended by the creditor, the debtor or lender, and sometimes the borrower.
The FHLMC is a Government-sponsored and stockholder-owned entity, which was established by the Congress in 1970. The objective of the organization is the expansion of the secondary mortgage segment, ensuring higher liquidity for lenders of mortgages, automatically encouraging higher rental housing and home ownership for citizens. This is commonly called Freddie Mac and buys, guarantees and finally securitizes home loans, while being a pivotal component of the secondary mortgage category as well. It is a similar Government-sponsored enterprise or GSE like Fannie Mae, and both of them are traded publicly. However, Fannie Mae purchases mortgages/loans from commercial/retail banks, while Freddie Mac gets loans from smaller banking entities.
Freddie Mac or the FHLMC is a pivotal part of the real estate sector in the United States. It is a vital part of the entire framework that encourages higher home ownership and makes mortgages more accessible for middle-class home buyers throughout the country. This also frees up more liquidity for lenders, thereby encouraging them to sanction more mortgages. In a way, it is a vital organization for the country’s real estate sector.
