What corporation utilizes global capital markets to provide support for low-cost mortgages?

Freddie Mac, officially known as the Federal Home Loan Mortgage Corporation, plays a significant role in the global capital markets by purchasing mortgages from lenders, thereby providing them with liquidity. This process allows lenders to offer lower-cost mortgages to consumers, as they can sell off the mortgages they originate and use the funds to provide new loans. By facilitating this secondary mortgage market, Freddie Mac helps to stabilize the housing market and ensures that mortgage credit is available to consumers, which in turn supports homeownership across the country.

The primary mission of Freddie Mac is to enhance the flow of credit to the housing market, and it achieves this by issuing mortgage-backed securities (MBS) that attract global investors. This enables the corporation to pool together a large number of individual mortgages, which not only diversifies risk but also lowers borrowing costs for homebuyers.

In contrast, other options play different yet important roles within the housing finance system. For instance, Fannie Mae also works in the secondary mortgage market, but its specific mission and structuring differ slightly from Freddie Mac. Ginnie Mae is focused on guaranteeing the timely payment of principal and interest on mortgage-backed securities, primarily those backed by government loans. Meanwhile, commercial banks are more directly involved in the origination of loans rather than