The role of the Federal Home Loan Mortgage Corporation
The money that lenders obtain by selling home loans to FHLMC is used to fund more mortgages. This allows lenders to create a number of mortgage packages, even for bad credit borrowers. Although many homeowners and buyers are not even aware that FHLMC exists, the GSE plays a key role in generating more mortgage options and home loan refinance options for all buyers. Thanks to the FHLMC, more people also enjoy lower monthly home loan payments. With the money that lenders receive from FHLMC, lenders can afford to make mortgages more affordable.