Freddie Mac is a stockholder-owned, government-sponsored enterprise (GSE) to support homeownership for middle-income Americans it was chartered by Congress in 1970. <\/p>\n

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Freddie Mac buys a large number of loans from mortgage lenders, to combine them and sell them as mortgage-backed securities.<\/p>\n

Federal Home Loan Mortgage Corp. (FHLMC) has an officially recognized nickname as Freddie Mac. Both Fannie Mae and Freddie Mac are publicly traded GSEs. <\/p>

While Fannie Mae buys mortgage loans from major retail or commercial banks, Freddie Mac obtains its loans from smaller banks that is the only difference between the two. <\/p>\n

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The unchecked growth for Fannie Mae and Freddie Mac was the main reason that led to the credit crisis of 2008 leading to the Great  Recession.<\/p>\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t