The Federal Home Loan Mortgage Corporation (Freddie Mac to you and me) is facing losses far worse than analystis predicted. The FHLM exists to create a secondary market for mortgages, and its business model seems not to have predicted such a dire state of affairs: buying up countless ballooned mortgages even as the housing market slows to a crawl. Though some of Freddie Mac’s stock was purchased by the US government in order to give it a boost, Freddie mac’s securities (the financial tools it sells based on the mortgages it owns) are not guaranteed by the federal government. More
Sphere: Related Content
-
Categories
-
Archives