Freddie Mac is a Quasi-governmental agency that
purchases conventional mortgages from insured depository institutions and
HUD-approved mortgage bankers.
Freddie Mac participates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities, principally those we call PCs. The secondary mortgage market consists of institutions engaged in buying and selling mortgages in the form of whole loans (i.e., mortgages that have not been securitized) and mortgage-related securities.