To increase the supply of money available for mortgage loans and new home purchases _____ bought mortgages already written by lenders, pooled them, and sold them as mortgage-backed securities to investors on the open market.

Freddie Mac is a government sponsored enterprise (GSE) that buys mortgages and packages them into mortgage-backed securities. Its official title is the Federal Home Loan Mortgage Corporation or FHLMC.

FHLMC's main function is to buy up mortgages on the secondary market, securitize them, and sell the securities to institutional investors.

Banks use the funds received from Freddie to make new loans to homebuyers. That boosts the housing market and allows more people to become homeowners.

Therefore, To increase the supply of money available for mortgage loans and new home purchases FREDDIE MAC bought mortgages already written by lenders, pooled them, and sold them as mortgage-backed securities to investors on the open market.

Wajihawaseem7 Wajihawaseem7 · Answer 2 · 2020-03-14T15:48:24+01:00

Wajihawaseem7 Wajihawaseem7

14-03-2020

Answer:

Freddie Mac

Explanation:

Freddie Mac is a legislature claimed company that purchases home loans and bundles them into contract supported protections. Its official title is the Federal Home Loan Mortgage Corporation or FHLMC.

Banks utilize the assets got from Freddie to make new advances to homebuyers. That helps the lodging market and permits more Americans to become property holders.

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