We conduct business through two business segments, the single-family business segment and the multifamily business segment. Those two segments are primarily supported by our Single-Family Division, Multifamily Division, and Capital Markets Division.
Single-Family Business Segment
Our single-family business segment supports responsible, sustainable homeownership. We do so primarily through the work of our Single- Family Division and Capital Markets Division.
Those divisions work with lenders of all sizes – national, regional and community lenders and credit unions – to buy conventional, conforming mortgage loans for one- to four-unit homes – including condominiums and manufactured homes – up to a certain dollar amount set by our regulator. As part of our mission, we are committed to creating homeownership opportunities for people hoping to buy a home for the first time, earning low and moderate incomes and living in underserved markets.
Because lenders know they can sell loans to us, they are more willing to make long-term, fixed-rate loans, which make mortgage payments more affordable to more households. When a homeowner faces financial difficulties, we work with the lender to help the borrower avoid foreclosure, where possible, or exit homeownership as smoothly as possible.
We also promote liquidity and make funding more available to borrowers by purchasing mortgage-related securities guaranteed by Freddie Mac and other financial institutions as investments. We fund these investments by issuing corporate debt securities. Freddie Mac's investors include, but are not limited to, central and commercial banks, pension funds, insurance companies and securities dealers from around the world.
Multifamily Business Segment
Our multifamily business segment supports affordable rental opportunities across the nation, primarily through the work of our Multifamily Division and capital markets activities within that group and the Capital Markets Division.
Working with a network of specialized lenders, Freddie Mac provides funding for loans on properties ranging from five units to hundreds of units across multiple buildings. We support all types of multifamily properties nationwide, including conventional, seniors, student and subsidized housing as well as smaller properties and manufactured housing communities.
Our funding is vital to making sure that renters have access to adequate, affordable apartment homes. Around 90 percent of the apartments we finance each year are affordable to low- or moderate-income renters. Multifamily borrowers mainly are commercial entities, such as property developers, and the properties are considered businesses. Our in-house teams closely oversee loan and property quality throughout the life of each loan.
FAQs
Be honest. If you don't know the answer to a question, don't try to make something up. Instead, be honest and tell the investor that you'll look into it and get back to them.
What is the 5 rule of investing? ›
This sort of five percent rule is a yardstick to help investors with diversification and risk management. Using this strategy, no more than 1/20th of an investor's portfolio would be tied to any single security. This protects against material losses should that single company perform poorly or become insolvent.
What are the 4 C's of investing? ›
Trade-offs must be weighed and evaluated, and the costs of any investment must be contextualized. To help with this conversation, I like to frame fund expenses in terms of what I call the Four C's of Investment Costs: Capacity, Craftsmanship, Complexity, and Contribution.
What is the 4 rule in investing? ›
The 4% rule entails withdrawing up to 4% of your retirement in the first year, and subsequently withdrawing based on inflation. Some risks of the 4% rule include whims of the market, life expectancy, and changing tax rates. The rule may not hold up today, and other withdrawal strategies may work better for your needs.
What are the golden rules for investors? ›
Take informed decision. Whether you decide to invest, sell or hold - always make sure that you know why you are taking the decision. Conduct proper research to ensure that your decisions are reasonable. Your investment decisions must be data-driven and not sentiment- or reputation-driven.
What are the 3 A's of investing? ›
Remember the 3 A's for retirement saving: amount, account, and asset mix.
What is the 70% investor rule? ›
Basically, the rule says real estate investors should pay no more than 70% of a property's after-repair value (ARV) minus the cost of the repairs necessary to renovate the home. The ARV of a property is the amount a home could sell for after flippers renovate it.
Do 90% of millionaires make over $100,000 a year? ›
Choose the right career
And one crucial detail to note: Millionaire status doesn't equal a sky-high salary. “Only 31% averaged $100,000 a year over the course of their career,” the study found, “and one-third never made six figures in any single working year of their career.”
What is the 80% rule investing? ›
In investing, the 80-20 rule generally holds that 20% of the holdings in a portfolio are responsible for 80% of the portfolio's growth. On the flip side, 20% of a portfolio's holdings could be responsible for 80% of its losses.
What do you say to investors? ›
When speaking with potential investors, be sure to explain the details of your plan in a clear and concise manner. Avoid using too much jargon or overly technical language. Investors want to know the basics of your plan and how you intend to use their money. Second, avoid overstating the potential of your business.
So they're going to want to know exactly why you need the cash and exactly what you plan to do with it. They'll also want to know when they can expect a return; that should be a part of your business plan. Investors will also be looking for an exit strategy, and you need to think about that in advance.
