Freddie Mac is the official nickname of the Federal Home Mortgage Mortgage Corporation (FHLMC).
Freddie Mac is a state-sponsored joint stock company (GSE) established by Congress in 1970 to support middle-income American home ownership.
Freddie Mac’s role is to buy large amounts of loans from mortgage lenders, then pool them together and sell them as mortgage-backed securities.
Fannie Mae and Freddie Mac are public GSEs. The main difference between the two is that Fannie Mae buys mortgages from large retail or commercial banks, while Freddie Mac gets loans from smaller banks.
Some argue that the runaway growth of Fannie Mae and Freddie Mac was the main driving force behind the 2008 credit crunch that turned into the Great Recession.
2/28 adjustable rate mortgages (ARM) offer an initial fixed rate for two years, after which the interest rate is adjusted semi-annually for another 28 years.
An 80-10-10 mortgage consists of two mortgages: the first is a fixed-rate loan of 80% of the value of the home; the second - 10% as a loan secured by equity capital; and the remaining 10% as a down payment in cash.
A movable property loan is secured by a movable item or movable property that is used to purchase the loan. The creditor has the right of ownership of the movable property.
The holiday act literally releases the parties to the transaction from previous obligations, such as payments on the terms of the mortgage, because the loan is repaid.
An FHA 203(k) loan is a government-secured mortgage loan, which is essentially a construction loan that finances both the purchase and renovation of a home.