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Finance Dictionary and Glossary of Investment Terms
1. A nickname for the Federal Home Loan Mortgage Corporation (FHLMC) A private, shareholder-owned company that was chartered by Congress in 1970 to create a secondary market in conventional mortgages, thus increasing the supply of funds available to prospective homebuyers. The FHLMC purchases mortgages from federally-insured financial institutions and resells them in the form of mortgage-backed securities, which it guarantees. FHLMC is often called a "government-sponsored corporation" because it was created by Congress and is regulated differently than other corporations 2. A security issued by the FHLMC that is secured by pools of conventional home mortgages.