How Freddie Mac computer Shapes the loan Backed Safeguards (MBS) Space After you ask the question, What is FHLMC? you’re probably getting an answer related to residential mortgage loans, that are impossible inside their latest function without any input regarding Freddie Mac and other government agencies intent on broadening Western homeownership. On average home loan towards the mortgage business lasting 31 many years, in place of entities like Freddie Mac, giving banking institutions will have to contain the mortgage on the instructions for your name, and when every chance regarding the each individual mortgage. Freddie Mac computer is not a primary lender to prospective home owners. Instead, it functions by to acquire grouped mortgages regarding financial institutions or other organizations originating mortgage loans.