Federal Home Loan Mortgage Corp, known as Freddie Mac (OTC: FMCC), is a federally chartered corporation that operates in the U.S. secondary mortgage market by purchasing single-family and multifamily mortgage loans from lenders, packaging them into mortgage-backed securities, and guaranteeing the timely payment of principal and interest on those securities. It earns money primarily through guarantee fees charged on the mortgage-backed securities it issues, as well as net interest income from its retained mortgage-related investment portfolio. Freddie Mac operates under conservatorship of the Federal Housing Finance Agency, a status in place since 2008. The company organizes its operations into two reportable segments: Single-Family and Multifamily, as disclosed in its 10-K filed February 12, 2026. Its federally chartered status and government conservatorship give it a structurally distinct position relative to fully private financial institutions in the mortgage finance market.

Revenue model

Guarantee fees on mortgage-backed securities issued to the secondary market, plus net interest income from mortgage-related and other investment portfolios held on balance sheet. Two business segments: Single-Family and Multifamily.

Products and services

Single-family mortgage securitization and credit guarantees; multifamily mortgage securitization and credit guarantees; mortgage-related investment portfolio holdings; credit risk transfer products; mortgage purchase and pooling services for lenders.

Customers and end markets

Primary customers are mortgage lenders and originators who sell loans into the secondary market. End markets are U.S. residential single-family housing and multifamily (apartment) housing finance.

Value-chain role

Secondary mortgage market intermediary. Purchases mortgage loans from primary lenders, pools them into agency mortgage-backed securities, and provides credit guarantees to investors, thereby providing liquidity to the primary mortgage lending market.

Geographic exposure

United States only, as a federally chartered U.S. corporation focused on the domestic residential and multifamily mortgage market.

Source: SEC 10-K, filed 2026-02-12

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