Here's How Federal Home Loan Mortgage (Freddie Mac) Beats the Market From Here

The large mortgage buyer and government-sponsored entity (GSE) Federal Home Loan Mortgage (OTC: FMCC), also known as Freddie Mac, is not your typical stock. While the company is actually extraordinarily profitable and runs a strong business, its future performance currently depends more on factors beyond its control than on its own operations.Freddie Mac, along with Federal National Mortgage Association (Fannie Mae), was taken into government conservatorship during the Great Recession. Both companies purchase mortgages from banks and other financial institutions, then package them into securities that can be sold to investors, serving as a vital source of liquidity in the mortgage market.This allows financial institutions to remove mortgages from their balance sheets, enabling them to meet all consumer demand.Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool