FHLMC or Freddie Mac. The Federal Home Loan Mortgage Corporation is the government-chartered corporation which buys qualified mortgage loans from financial institutions that issue mortgage (the primary market), securitizes the loans into tradable batches and resells them to a secondary mortgage market.

Although Freddie Mac issues are not backed by the US Government, and the value of these securities will fluctuate prior to maturity, the FHLMC has helped to stabilize the mortgage industry by creating a secondary market where sellers exposed to risks associated with mortgage lending may more easily find counterparties.