Freddie Mac is a government sponsored enterprise of the United States Government. It is a stockholder owned corporation authorized to make loans and loan guarantees, which was created in 1970 to expand the secondary market for mortgages.

Freddie Mac buys mortgages on the secondary market, pools them, and sells them as mortgage-backed securities to investors on the open market. This secondary mortgage market helps to replenish the supply of lendable money for mortgages and ensures that money continues to be available for new home purchases.

The name "Freddie Mac" is a creative acronym of the company's full name (Federal Home Loan Mortgage Corporation - FHLMC) that has been adopted officially for ease of identification.