Federal Home Loan Mortgage Corporation (Freddie Mac)
An agency created by the federal government that buys and sells mortgages in the secondary market
Freddie Mac buys loans from lenders and then sells them to other lenders and investors in the secondary market. The process enables lenders to have a constant flow of cash in order to offer more loans. Freddie Mac buys government loans, as well as conventional loans, which must all follow its strict borrowing guidelines.