Federal Home Loan Mortgage Corporation[FHLMC] Law and Legal Definition

The Federal Home Loan Mortgage Corporation (FHLMC) is a federal corporation created by Congress in 1970. The FHLMC is a government sponsored enterprise of the U.S. federal government. The objectives of the FHLMC are the following:

1. To expand secondary market for mortgages in the U.S.;

2.To increase the supply of available money for mortgage lending;

3.To increase the available money for new home purchases.

The FHLMC is as also known as Freddie Mac. The statutory objective of the FHLMC is to provide ongoing assistance to the secondary market for home mortgages, including mortgages securing housing for low and moderate income families. The FNMA is loosely regulated by the federal government. The FNMA is authorized to make and perform contracts, agreements, and commitments. The FNMA is also authorized to acquire, take, hold, and own and to deal with and dispose of any property. [Paley v. Federal Home Loan, Mortgage Corp., 1994 U.S. Dist. LEXIS 9243 (E.D. Pa. July 6, 1994)]