Freddie Mac is a government-backed enterprise established to provide the U.S. housing market with liquidity, stability, and affordability. It pools mortgages that it buys from lenders and sells them to investors as mortgage-backed securities. This process increases the funds available for mortgage lending, which in turn supports new home purchases. Freddie Mac provides competition to—and serves a similar purpose as—Fannie Mae.
Courtesy of Freddie Mac