Federal Home Loan Mortgage Corporation

The Federal Home Loan Mortgage Corporation operates as a key entity within the United States' secondary mortgage market. Its core business involves purchasing residential mortgage loans, covering both individual residences and multi-unit dwellings, which are originated by various lenders. Additionally, the corporation commits capital to mortgage-backed investments and related debt instruments. The company is organized into two distinct operating divisions: the Single-family segment and the Multifamily segment. The Single-family division primarily procures, packages into marketable securities, and guarantees financing for individual homes. It also mitigates credit risk on these housing loans, manages a portfolio of mortgage-related investments, oversees its securitization programs for single-family homes, and conducts treasury functions. This segment serves a wide spectrum of financial intermediaries, including mortgage banking firms, commercial and regional banks, credit unions, community banks, housing finance agencies, savings institutions, and non-depository financial entities. In contrast, the Multifamily division engages in the procurement, distribution, securitization, and guarantee of financing and related financial products for multi-unit residential developments. This is facilitated through the issuance of specific K and SB certificates, alongside the creation and backing of various other securitization and credit risk transfer offerings, in addition to furnishing other mortgage-related assurances. Its customer base encompasses banks, other depository institutions, insurance providers, investment managers, central banks, pension schemes, state and local government entities, real estate investment trusts (REITs), brokers, dealers, and a diverse range of lending entities. Founded in 1970, Federal Home Loan Mortgage Corporation maintains its corporate headquarters in McLean, Virginia.