In 1938 the United States created the Federal National Mortgage Association, also known as Fannie Mae. Fannie Mae held a monopoly in the secondary mortgage market from 1938 to 1970, when it was made a private corporation by then President Lyndon B. Johnson, in order to remove it from the national budget. In order to give Fannie Mae some competition in the secondary mortgage market, Congress created the Federal Home Loan Mortgage Corporation (FHLMC), also known as Freddie Mac in 1970. Freddie Mac’s mission is to provide liquidity, stability and affordability to the housing market. In their mission “statement” Freddie Mac defines each goal. They define stability saying their retained portfolio plays an important role in making sure there’s a stable supply of money for lenders to make the loans new homebuyers need and an available supply of workforce housing in our communities. Affordability is defined as finance housing for low- and moderate-income families. Their requirements are families must be able to purchase and keep a home. Finally for liquidity, Freddie Mac stated that insuring a stable supply of money for lenders to make the loans new homebuyers need. Doing this gives every one better access to home financing. All of these goals helped Freddie Mac get the company up and running. (Freddiemac.com. Our Mission) Just to show how successful they have been, here are some of the corporate and industry facts Freddie Mac has put on their website. They have financed homeownership for fifty million families since 1970. A homebuyer can save $18,000 on a $150,000 mortgage if they purchase with Freddie Mac. Every 7 to 10 seconds Freddie Mac made it possible for another family to own a home in 2004. Only 15 to 20 seconds is the typical time it takes Freddie Mac’s Loan Prospector automated underwriting service to assess a loan for purchases by Freddie Mac. More than 15,000 lenders and mortgage brokerage firms use their Loan Prospector to qualify borrowers at the...