Companies/United States • Curated by Admin Timeline.sg
Freddie Mac (Federal Home Loan Mortgage Corporation) is a US government-sponsored enterprise that provides mortgage liquidity by purchasing and securitizing home loans. Founded in 1970 to expand the secondary mortgage market, it played a pivotal role in housing finance, faced near-collapse during the 2008 financial crisis, and has been under federal conservatorship since then.
Chronological Storyline (45 Milestones)
Jul 24, 1970 CE
Freddie Mac Created by Congress
The Federal Home Loan Mortgage Corporation (Freddie Mac) is established by the Emergency Home Finance Act of 1970 to increase the supply of mortgage credit and broaden the secondary mortgage market. #finance #housing
Freddie Mac Created by Congress By Wikideas1 - Own work https://www.relbanks.com/rankings/top-us-companies https://www.hud.gov/sites/dfiles/CFO/documents/afr2018.pdf, CC BY-SA 4.0, https://commons.wikimedia.org/w/index.php?curid=83866773
1971 CE
First Mortgage Participation Certificate Issued
Freddie Mac issues its first Mortgage Participation Certificate (PC), a new type of mortgage-backed security that pools conventional mortgages, helping to standardize the secondary market. #finance #housing
1972 CE
First Conventional Mortgage PC Issued
Freddie Mac issues the first mortgage-backed security backed by conventional (non-government-insured) mortgages, expanding the investor base for home loans. #finance #housing
1975 CE
Freddie Mac Begins Purchasing Adjustable-Rate Mortgages
In response to rising interest rates, Freddie Mac starts purchasing adjustable-rate mortgages (ARMs), providing liquidity for lenders and borrowers. #finance #housing
1982 CE
First Multi-Lender PC Issued
Freddie Mac issues the first mortgage-backed security pooling loans from multiple lenders, increasing efficiency and diversification. #finance #housing
1984 CE
First Secondary Mortgage Market Enhancement Act
Congress passes the Secondary Mortgage Market Enhancement Act, expanding Freddie Mac and Fannie Mae's authority to purchase and securitize loans, boosting market liquidity. #finance #housing
1988 CE
First Real Estate Mortgage Investment Conduit (REMIC)
Freddie Mac issues its first REMIC, a complex mortgage-backed security that allows for more customized cash flows, attracting a broader range of investors. #finance #housing
Jul 1, 1989 CE
FIRREA Reorganizes Freddie Mac
The Financial Institutions Reform, Recovery, and Enforcement Act (FIRREA) restructures Freddie Mac's board and oversight, transferring regulatory authority from the Federal Home Loan Bank Board to the newly created Office of Thrift Supervision and the HUD. #finance #regulation
1990 CE
Freddie Mac Becomes Stockholder-Owned
Freddie Mac issues common stock for the first time, converting from a wholly owned government entity to a publicly traded company, with shares listed on the NYSE. #finance #business
1991 CE
Leland Brendsel Appointed CEO
Leland Brendsel becomes CEO of Freddie Mac, leading the company through a period of rapid growth and innovation in mortgage securitization. #finance #leadership
Oct 28, 1992 CE
Freddie Mac Enters Million-Dollar Donation Program
Freddie Mac launches a philanthropic initiative, donating millions to affordable housing and community development programs. #finance #housing
1995 CE
Freddie Mac Launches Loan Prospector
Freddie Mac introduces Loan Prospector, an automated underwriting system that streamlines mortgage approvals, reducing costs and processing time. #finance #technology
1996 CE
HUD Sets Affordable Housing Goals
The Department of Housing and Urban Development (HUD) establishes affordable housing goals for Fannie Mae and Freddie Mac, requiring them to increase purchases of loans to low-income and underserved borrowers. #finance #housing
1999 CE
Freddie Mac Processes $1 Trillion in Mortgage Securities
Freddie Mac reaches a milestone of over $1 trillion in mortgage-backed securities issued, reflecting its dominant role in the housing finance system. #finance #housing
2000 CE
OFHEO Created to Oversee Freddie Mac and Fannie Mae
The Office of Federal Housing Enterprise Oversight (OFHEO) is established as a new regulator for the GSEs, focusing on safety and soundness. #finance #regulation
Jun 9, 2003 CE
Freddie Mac Restates Earnings for 2000-2002
Freddie Mac announces a $5 billion restatement of earnings for 2000-2002 due to accounting irregularities, leading to the removal of top executives and a $125 million fine. #finance #scandal
Nov 1, 2003 CE
Richard Syron Appointed CEO
Richard Syron becomes CEO of Freddie Mac, tasked with restoring credibility and implementing stronger internal controls after the accounting scandal. #finance #leadership
2004 CE
OFHEO Blasts Freddie Mac's Culture
OFHEO releases a scathing report on Freddie Mac's corporate culture, calling it 'arrogant and complacent,' and imposes strict growth limits. #finance #regulation
2005 CE
Freddie Mac Aggressively Expands Subprime and Alt-A Holdings
Freddie Mac increases purchases of subprime and Alt-A mortgage securities, contributing to the housing bubble and later incurring massive losses. #finance #housing
Aug 15, 2007 CE
Freddie Mac Reports First Quarterly Loss
Freddie Mac reports a $2.1 billion quarterly loss, its first in years, as mortgage defaults rise, signaling the start of the subprime crisis. #finance #housingcrisis
Oct 1, 2007 CE
Freddie Mac Partners with NeighborWorks for Foreclosure Prevention
Freddie Mac launches a national foreclosure prevention initiative in partnership with NeighborWorks America to help struggling homeowners. #finance #housing
Jul 13, 2008 CE
Treasury Announces Backstop for Freddie Mac and Fannie Mae
The U.S. Treasury announces a plan to provide emergency funding and buy equity in Freddie Mac and Fannie Mae to prevent their collapse, sparking market volatility. #finance #bailout
Sep 7, 2008 CE
Freddie Mac Placed into Conservatorship
The Federal Housing Finance Agency (FHFA) places Freddie Mac under conservatorship, ousting its CEO and board, with the U.S. Treasury injecting up to $100 billion to keep it solvent. #finance #bailout
Sep 18, 2008 CE
Freddie Mac Stock Collapses
Freddie Mac's common stock plummets from over $5 per share to below $1 amid the financial crisis; the stock later trades at pennies. #finance #stockmarket
Mar 18, 2009 CE
Freddie Mac Enters Making Home Affordable Program
Freddie Mac participates in the Obama administration's Making Home Affordable program, offering loan modifications and refinancing options to distressed borrowers. #finance #housing
Dec 24, 2009 CE
Freddie Mac Requests Additional $51 Billion from Treasury
Freddie Mac requests a $51 billion capital injection from the Treasury, bringing total bailout funds to over $80 billion, as losses continue to mount. #finance #bailout
Aug 17, 2010 CE
Freddie Mac Sued by SEC for Securities Fraud
The SEC files a lawsuit against Freddie Mac and three former executives, alleging misleading statements about exposure to risky subprime mortgages. #finance #lawsuit
Nov 1, 2010 CE
Freddie Mac Dividend Sweep Announced
Treasury modifies the financial agreement to require Freddie Mac to pay quarterly dividends equal to its entire net worth, a 'sweep' that prevents the company from building capital. #finance #policy
Feb 11, 2011 CE
FHFA Releases Strategic Plan for Fannie Mae and Freddie Mac
The FHFA outlines three strategic goals: reduce taxpayer risk, build a new securitization infrastructure, and eventually wind down the GSEs. #finance #regulation
Jun 13, 2012 CE
Freddie Mac Wins Federal Reserve Approval for Single Security
Freddie Mac and Fannie Mae receive Federal Reserve approval to develop a common mortgage-backed security (UMBS) to improve market liquidity. #finance #housing
Aug 12, 2013 CE
Melvin Watt Appointed FHFA Director
Melvin Watt becomes director of the FHFA, overseeing Freddie Mac and Fannie Mae, and adopts a cautious approach to reform, maintaining conservatorship. #finance #regulation
Nov 5, 2013 CE
Freddie Mac Repays $37.5 Billion to Treasury
Freddie Mac announces it has repaid $37.5 billion of its bailout funds through dividend payments, though the dividend sweep means it cannot exit conservatorship. #finance #bailout
Mar 19, 2014 CE
Freddie Mac Releases New Underwriting Tool, Loan Advisor Suite
Freddie Mac launches Loan Advisor Suite, an integrated platform of automated underwriting and risk assessment tools to improve mortgage origination efficiency. #finance #technology
May 20, 2015 CE
FHFA Announces Common Securitization Platform (CSP)
FHFA announces plans for a common securitization platform shared by Freddie Mac and Fannie Mae to facilitate the creation of a uniform mortgage-backed security. #finance #housing
Nov 21, 2016 CE
Freddie Mac Enables Choice of Single Security
Freddie Mac announces it will offer a single mortgage-backed security (UMBS) alongside Fannie Mae, beginning a multi-phase transition to a unified market. #finance #housing
Jan 1, 2017 CE
Freddie Mac's Single Security Goes Live
Freddie Mac's Uniform Mortgage-Backed Security (UMBS) begins trading, creating a more liquid and transparent market for mortgage securities. #finance #housing
Sep 14, 2018 CE
Freddie Mac Reaches Record $1.6 Billion Net Income
Freddie Mac reports net income of $1.6 billion in Q2 2018, driven by strong housing market and low defaults, but profits are swept to Treasury. #finance #earnings
Feb 11, 2019 CE
Larry Thompson to Lead Freddie Mac as CEO
Larry Thompson is named CEO of Freddie Mac, succeeding Donald H. Layton, with a focus on risk management and preparing for potential reform. #finance #leadership
Sep 10, 2019 CE
Treasury's GSE Reform Plan Proposes Ending Conservatorship
The U.S. Treasury releases a housing reform plan that recommends ending conservatorship of Freddie Mac and Fannie Mae, but no concrete action follows. #finance #policy
Mar 27, 2020 CE
Freddie Mac Implements Mortgage Forbearance Under CARES Act
Freddie Mac begins offering forbearance to homeowners affected by COVID-19, allowing payment suspensions for up to 180 days. #finance #housing
Jul 20, 2020 CE
Freddie Mac Launches Refi Possible Mortgage Program
Freddie Mac introduces Refi Possible, a low-cost refinance option for low-income borrowers struggling due to COVID-19. #finance #housing
Jun 2, 2021 CE
FHFA Lifts Loan Purchase Limits for Fannie Mae and Freddie Mac
FHFA raises the conforming loan limit for GSE purchases to $647,200, reflecting rising home prices and expanding access to credit. #finance #housing
Nov 18, 2022 CE
Freddie Mac Reports $2.4 Billion Loss in Q3 2022
Freddie Mac posts a $2.4 billion net loss due to rising interest rates and declining mortgage origination volumes, highlighting market volatility. #finance #earnings
May 9, 2023 CE
Freddie Mac Announces DwelOS Partnership for Borrower Empowerment
Freddie Mac partners with DwelOS to provide borrowers with digital tools for homeownership education and financial management. #finance #technology
Jul 14, 2023 CE
FHFA Directs Freddie Mac to Develop Equitable Housing Finance Plan
FHFA orders Freddie Mac to create a plan to address racial and ethnic disparities in mortgage lending, focusing on underserved communities. #finance #housing
