Boca Raton Bankruptcy Lawyer

All About Freddie Mac

Freddie Mac is the shorthand name of the Federal Home Loan Mortgage Corporation (FHLMC). A government-sponsored enterprise, its primary function is to expand the secondary market for home mortgage by buying, pooling, and selling them as securities (debt obligations).

Freddie Mac is often viewed as a sister corporation to Fannie Mae, or the Federal National Mortgage Association, which was the sole institution of this nature from 1938 up until the creation of Freddie Mac in 1970. Freddie Mac and Fannie Mae were traditionally viewed as providing healthy, market-stimulating competition with one another.

Over time, both organizations have gone through significant changes in ownership and direction. Until recently, they were both considered privately-held but publicly-funded institutions. However, both of these corporations came under massive governmental and media scrutiny in the wake of the recent global financial crisis, related in large part to the sorts of credit deals in which Freddie Mac was primarily interested.

Put under the direct supervision of the federal government in 2008, Freddie Mac is currently in the process of major emergency transformations with these concerns in mind. Unfortunately, the fallout from the financial collapse has caused serious problems for individuals and businesses across the country.

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If you are currently facing major personal financial problems due to the recent complications of the subprime mortgage crisis, you should give serious consideration to the potential benefits of declaring bankruptcy. Contact an experienced Boca Raton bankruptcy lawyer at the law offices of Eric N. Klein & Associates, P.A., today by calling 561-353-2800 for help in this difficult time.