Freddie Mac (FHLMC) is the institution to which financial institutions with federal guarantees can sell mortgages. What does FHLMC stand for?

Freddie Mac is indeed an acronym for the Federal Home Loan Mortgage Corporation. This government-sponsored enterprise was created to increase the availability of mortgage funds for the housing market, thereby ensuring that financial institutions can sell their mortgages and obtain the necessary liquidity. By aggregating and securitizing mortgages, Freddie Mac plays a crucial role in the secondary mortgage market, making it easier for individuals to obtain financing for home purchases.

Understanding this terminology is essential for anyone studying real estate principles, as it represents a fundamental aspect of how secondary markets operate and how they contribute to the overall stability and efficiency of the housing finance system. The other options, while they may sound similar, do not accurately reflect the correct definition or structure of Freddie Mac, highlighting the importance of precise language in the financial and real estate sectors.