The Federal Home Loan Mortgage Corporation (known as Freddie Mac) was created in 1970 to expand the secondary market for mortgages. Previous to this, the Federal National Mortgage Association (known as Fannie Mae) was the only institution in this market.
The secondary mortgage market is when an institution buys secondary mortgages. They then pool them together and sells them to investors on the open market as mortgage-backed securities. This increases the amount of money that is available for mortgages.
In theory, this lowers the risk for a bank or financial institution of holding the mortgage because of the aggregation process. However, this process undoes the connection between lender and borrower, such that the institution that originally granted the mortgage had no incentive to make sure the borrower can pay the loan. Freddie Mac assumes the credit risk on the mortgages in exchange for charging a guarantee fee.
Freddie Mac’s stock plummeted to $1 in September of 2008 as a result of the economic crisis, then dropped another 50% by June of 2010. At that point Freddie Mac was delisted.
Today Freddie Mac provides credit guarantee for residential mortgages and invests in mortgage loans and mortgage-related securities in the U.S. Freddie Mac has 5,000 employees and had $80.64 billion in revenue in 2012.
Freddie Mac
The Federal Home Loan Mortgage Corporation (known as Freddie Mac) was created in 1970 to expand the secondary market for mortgages. Previous to this, the Federal National Mortgage Association (known as Fannie Mae) was the only institution in this market.
The secondary mortgage market is when an institution buys secondary mortgages. They then pool them together and sells them to investors on the open market as mortgage-backed securities. This increases the amount of money that is available for mortgages.
In theory, this lowers the risk for a bank or financial institution of holding the mortgage because of the aggregation process. However, this process undoes the connection between lender and borrower, such that the institution that originally granted the mortgage had no incentive to make sure the borrower can pay the loan. Freddie Mac assumes the credit risk on the mortgages in exchange for charging a guarantee fee.
History
Freddie Mac’s stock plummeted to $1 in September of 2008 as a result of the economic crisis, then dropped another 50% by June of 2010. At that point Freddie Mac was delisted.
Today Freddie Mac provides credit guarantee for residential mortgages and invests in mortgage loans and mortgage-related securities in the U.S. Freddie Mac has 5,000 employees and had $80.64 billion in revenue in 2012.
my name is gary watson and freddie mac owns my mortgage it is serviced by nationstar. for 2 years they have broken several laws in the course of denying me options to keep my home. i have reported it to freddie. nobody cares. please help me. nationstar/mr.cooper are not the bank. they work for freddie mac. freddie mac is just as crooked and refuse to address documented mortgage fraud. the fbi handles those cases but they do nothing as far as i can tell.
published to facebook for the world to see. i’m sharing my story because freddie won’t listen.
PS Freddie Mac Sells your loan/mortgage to Predatory Lenders, And gets the treasury to give these crooks Millions !
TERRIBLE
I was sold to hard core predatory home stealers that foreclosed on my home after bilking me out of more than I owe. .Most Home owners and buyers have no clue that you have sold their loans to crooks ! I believe you will not get away with this fraud much longer. As soon as I get my home back the entire country will know this dirty big secret ! I’m a person with integrity and hate having to deal with dishonest and heartless crooks.
Your deception and Greed will catch up to you. Hopefully it will be soon. You caused half of the foreclosures in the country and are still at it !
Donald Layton,
You let Bank Of America cheat us out of the HAMP Program by losing our application 8 times.Then they sold us a HARP refi for $8,000.00 closing costs that did not lower our payments enough for us to buy food and it now makes us ineligible for HAMP.Then when we defaulted you refused to lower our interest rate enough for us to actually stay in the home.All of you working there are thieves just like the rest of our government and are stealing our homes with our tax money.Then after you screwed us with another too high interest rate you advertise these low rates on the HARP refis but won’t let us have them so we can keep our homes-WHAT THE HELL IS GOING ON WITH YOUR ORGANIZATION?
I want to buy a property that you have for sale here in Las Cruces NM (2600 WESTMORELAND 88012) , I know the property for some time a go and I’ve been adviced of the current state in which it is and also the damages it has inside and out.
But I still want to make an offer directly to you in order to buy it, due it has been very difficult to do that thru realtors .
please contact me .
Thanks.
Francisco Lugo.
My name is Vicki Donnelly and I recently purchased a home on 7473 Meadow Ln on November 15th 2013. The home was a Freddie Mac home which included the 2-10 Warranty. When I moved into the home on Friday November15th the hot water heater was working. I spent the weekend cleaning and the water was hot and working properly. It was not until Sunday night on November 17th that I noticed the water was cold. One of my friends checked the hot water heater and noticed the pilot was out. We lit the pilot light and all was well until Tuesday 19th when I returned home from work and realized once again there was no hot water. This was my first call to 2-10 and within 24 hours they had a contractor come out to look at the hot water heater. He determined that it needed a thermal cup but the claim was denied. At that time my realtor Alexander Munro became involved and contacted 2-10. I had to fax my home inspection to 2-10 proving that the hot water heater had indeed been working at the time of inspection. It wasn’t until Thursday Evening on November 21st that I was told the denial had been overturned. It wasn’t until Saturday, November 23rd that a contractor came out to fix the part. ( This made 4 days without hot water) On Saturday, he fixed the part and all seemed great until Monday Evening November25th when once again I was without Hot Water. I called many times and spoke to several people including supervisors and was told I would just have to wait because this was not an emergency . For the third time a contractor came out on Wednesday November 27th. (again I was without hot water for 2 days). He called the manufacturer and cleaned the unit and was able to get it running once again. He left my home at 2:30 and by 4:00 once again the pilot light was out and the water was cooling off. I immediately called the contractor to tell him and he said that it needed a gas valve and he would try to get one by the end of the day. He never called me back. I called him at 6:15 to ask what was going on. He told me he was not able to get the part and it was too late to get anything authorized so he would do that Friday morning. I did not have hot water the remainder of Wednesday or Thursday (Thanksgiving) (2 more days).
On Friday morning there was no call from the contractor or 2-10. Once again I called ( I was pretty fed up not having hot water for a total of 8 days) only to reach a condescending operator who told me she had to go without hot water before and it’s not easy. I asked who was coming out and who was going to fix my hot water heater. She explained it was the Holiday Weekend and people were busy and they were following their process. I asked to be connected to Customer Service and she told me she could e-mail them but I could not speak with them. I asked to speak with some one who could help me. She put Tom on the phone and he said there was nothing they could do and Monday would be the earliest they could get someone out there. (3 days away and I had already gone without hot water for 8 days) I explained that I worked two jobs and I could not take more time off work but he said that’s all they could do. After speaking with Tom I called an independent contractor (from the yellow pages) and explained what was going on and said he could be there within two hours. I called 2-10 and they gave me a work order number and told me that when the contractor diagnosed the issue to call them for approval. The Contractor inspected the Hot Water Heater and said since the thermal cup had been replaced and the contractors had already been out twice trying to fix it and the fact that he was not able to light the pilot and given that the water heater was from 2003 it would not be safe or make sense to replace the gas valve when the water heater was on its last leg. He explained that it was only a matter of time before the water heater would start leaking and this would cause more issues since my basement is finished.
He called 2-10 to give them the prognosis just like 2-10 asked that I do. Again, and not surprisingly it was denied. They asked the contractor to replace the gas valve even when the contractor explained that the water heater was shutting down was showing signs of aging. I then got on the phone and talked to the person from 2-10 and he told me that there was a problem with authorizing a hot water heater to be put in. I explained that this was a nightmare and by time they put in a gas value (which would have been Monday at the earliest because they would have needed to order the part) we could be talking the middle of next week which would be around December 4th. I explained that I had first called 2-10 on November 19th and am I having to wait until the beginning of December to finally have the issue of hot water resolved? He told me and I had heard it from others at 2-10 that having no hot water is NOT considered an emergency. I explained that there was no rational to this wait and see approach, I was going without hot water and they were spending more money replacing every part and paying a contractor to come out for a 4th time. He told me that they replace all the parts because Hot Water Heaters last 10-20 years.. Really, I am not mechanic but at 48 years old and having owned a couple of houses prior to this one Hot Water Heaters have a Life Span of about 10 years. At the end of this mess, I was approved for $162.00 the cost of the gas valve for a job that cost $995.00 not to mention the $100.00 deductible I had to pay.
I am extremely disappointed in this Warranty. On your brochure it says, FAST (11days I waited and it would have been longer- not so fast when you do not have hot water), EASY (not when you have to spend hours on the phone),PEACE OF MIND ( not when you have to wait for your hot water heater to leak all over your finished basement) On Friday morning, November 29th no one ever contacted me to give me Peace of Mind or let me know when I could anticipate the contractor coming out for the fourth time or when and how the hot water heater would be fixed . In reality I was in my home with no hot water after a contractor had come out 3x’s in the course of 11 days and 2-10 did not resolve this issue even though they were completely aware that this had been going ongoing for almost two weeks. That speaks volumes about the lack of professionalism in your company. I would not recommend your warranty to anyone, my realtor and anyone else who may consider this warranty.
The reason I am sending this is because Freddie Mac really promotes this warranty with your homes . It gives purchasers a sense of security and I thought I should inform you as to how their process works.
Victoria Donnelly
XXXXX Meadow Ln
Ypsilanti, MI
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