Freddie Mac is the nickname of the Federal Home Loan Mortgage Corporation (FHLMC). It purchases individual mortgages from banks, pools them into groups, and then sells bonds based on the value of the mortgage pools. Like Fannie Mae and Ginnie Mae, Freddie Mac helps increase liquidity in the secondary market for mortgages and allows banks to write more mortgages than they would be able to do without access to a secondary market.
