In the 1970 the government chartered the brand new Federal Home loan Financial Agency (Freddie Mac) since the a private providers
Contour 2 provides a histogram of your own loan-to-worth rates out of earliest-lien mortgage loans, illustrating the importance of 80 LTV
Their mission–to shop for and you may securitizing mortgage loans to promote exchangeability and you will balance–are exactly like Fannie Mae’s purpose, even when initial Freddie Mac was just supposed to pick mortgage loans originated from the discounts and you may mortgage connectivity. In time this distinction eroded. Such as for instance Fannie mae, Freddie Mac computer is actually thought of the most since the obtaining implicit backing of one’s regulators.