from The American Heritage® Dictionary of the English Language, 4th Edition
- n. A security issued by the Federal Home Loan Mortgage Corporation and secured by a pool of conventional home mortgages.
from Wiktionary, Creative Commons Attribution/Share-Alike License
- proper n. Widely-used nickname for the Federal Home Loan Mortgage Corporation (FHLMC), a private, stockholder-owned corporation sponsored by the US government, established in 1968 to provide market competition for the Federal National Mortgage Association.
from WordNet 3.0 Copyright 2006 by Princeton University. All rights reserved.
- n. a corporation authorized by Congress to provide a secondary market for residential mortgages
Their so-called agency problem as well as that of Fannie Mae and Freddie Mac is just economic jargon for bad incentives to provide investors with a little packaged truth about real economic riskrisk that was historically recognized in the sizable down payment requirements.
Another former chief who kept a directorship is Richard Syron , ousted as head of Freddie Mac in 2008 when the U.S. government seized the mortgage giant.