Freddie Mac (NYSE:FRE) 8200 Jones Branch Drive McLean, VA 22102-3110 Phone: (703) 903-2000 Fax: (703) 903-2759 http://www.freddiemac.com
Freddie Mac was chartered by Congress in 1970 to stabilize the nation's residential mortgage markets and expand opportunities for homeownership and affordable rental housing. On September 6, 2008, the Director of the Federal Housing Finance Agency, or FHFA, appointed FHFA as its Conservator. Upon its appointment, the Conservator immediately succeeded to all rights, titles, powers and privileges of Freddie Mac, and of any stockholder, officer or director of Freddie Mac with respect to Freddie Mac and its assets. The Conservator also succeeded to the title to all books, records and assets of Freddie Mac held by any other legal custodian or third party. The Company conducts business in the U.S. residential mortgage market and the global securities market under the direction of its Conservator. Operating the Company's business under the conservatorship involves balancing competing objectives. The Company manages its business, under the direction of the Conservator, through three reportable segments: Investments; Single-family Guarantee; and Multifamily. In its Single-family Guarantee segment, the Company purchases single-family mortgages originated by its lender customers in the primary mortgage market, mainly through its guarantor swap program. Its Multifamily segment activities include purchases of multifamily mortgages for investment or sale and guarantees of payments of main and interest on mortgages underlying multifamily housing revenue bonds and mortgage-related securities. The Company purchases single-family and multifamily mortgage-related securities for its mortgage-related investments portfolio. It also purchases multifamily residential mortgages in the secondary mortgage market and hold those loans either for investment or sale. It finances purchases of its mortgage-related securities and mortgage loans, and manages its interest-rate and other market risks, mainly by issuing a number of debt instruments and entering into derivative contracts in the capital markets. The Company's customers are predominantly lenders in the primary mortgage market that originate mortgages for homeowners and apartment owners. These lenders include mortgage banking companies, commercial banks, savings banks, community banks, credit unions, state and local housing finance agencies and savings and loan associations. The Company competes on the basis of price, products, structure and service. Historically, its main competitors have been Fannie Mae, the FHLBs, Ginnie Mae and other financial institutions that retain or securitize mortgages, such as commercial and investment banks, dealers, thrift institutions, and insurance companies.
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