Freddie Mac

Office address: 8200 Jones Branch Drive, McLean, VA 22102-3110
Year established: 1970
Company type: financial services
Employees: 7,800+
Expertise: housing, finance, compliance, risk management, economics
Parent company: N/A
CEO and key people: Mike Hutchins (president & interim CEO), Wendell Chambliss (chief diversity and inclusion), John Glessner (EVP), Dennis Hermonstyne Jr. (chief compliance officer), Anil Hinduja (chief risk officer), Laura Lee (SVP), Christian Lown (CFO)
Financing status: N/A

Freddie Mac is a US-chartered financial services institution that helps the American housing market to be more stable and affordable. The company functions in the US secondary mortgage market, where it acquires loans from approved lenders and pools them into securities sold to investors worldwide. In over 50 years, the company has facilitated homeownership and renting for 80 million people, providing more than $11.6 trillion in financing.

History of Freddie Mac

Freddie Mac's journey began in 1970, chartered by Congress to support the US housing finance system. It also served as competition for Fannie Mae, which was newly privatized in 1968.

The Financial Institutions Reform, Recovery, and Enforcement Act of 1989 further shaped its operations and oversight. Despite facing the Financial Crisis of 2008, including a conservatorship by the US federal government, the institution has played a significant role in providing a reliable and affordable supply of mortgage funds across the country.

Products and Services of Freddie Mac

Freddie Mac has a variety of mortgage options and financial products to offer its customers. Such offerings include:

  • single-family division: purchases mortgage loans from lenders, enabling them to offer more financing options to borrowers
  • multifamily division: provides liquidity and stability to the rental housing market, facilitating access to quality, affordable housing
  • HeritageOne℠ mortgage: mortgage products for Native American communities
  • Enhanced Relief Refinance®: for borrowers unable to refinance due to LTV limits
  • Home Possible®: for very low to moderate income borrowers with low down payments
  • HFA Advantage®: for housing finance agencies
  • CHOICERenovation® and CHOICEHome®: for renovation and manufactured homes
  • no cash-out refinance mortgages: for consolidating higher-rate loans

Culture at Freddie Mac

Freddie Mac’s culture is founded upon the mission to make home possible for families across the US through good and challenging economic conditions alike. That principle is mirrored by the company’s work environment which emphasizes inclusivity, diversity, and the continuous development of its employees.

To support their commitment towards a healthy workplace, Freddie Mac provides its staff with comprehensive benefits and programs, such as:

  • comprehensive health insurance options
  • retirement savings plans
  • educational & professional development plans
  • work-life balance support, including flexible work arrangements
  • diversity and inclusion initiatives
  • various wellness programs

About Freddie Mac CEO

Mike Hutchins serves as Freddie Mac's president and interim CEO as of 2024, holding positions on both its Board of Directors and Senior Operating Committee. Hutchins, with over 30 years in the financial services industry, has held leadership roles at Salomon Brothers and UBS, and served as CEO for PrinceRidge. He earned a Ph.D. in Economics from UNC and a Bachelor’s Degree in Economics and Mathematics from WashU.

Freddie Mac's leadership team brings extensive experience from the banking and finance sectors, including key figures like:

  • Wendell Chambliss (Chief Diversity and Inclusion Officer): oversees workplace diversity and ensures practices align with these principles
  • John Glessner (Head of Investments & Capital Markets): manages investments and financial operations.
  • Dennis Hermonstyne, Jr (CCO): keeps the company compliant with laws and internal guidelines, reducing risks
  • Anil Hinduja (Chief Risk Officer): identifies and reduces financial and operational risks to safeguard the company
  • Laura Lee (General Auditor): heads audits to evaluate Freddie Mac's risk management and governance
  • Christian Lown (CFO): oversees the company's financial planning, investment, and reporting efforts

The Future at Freddie Mac

Freddie Mac’s future is set to continue its mission of providing liquidity, stability, and affordability to the US housing market. The company maintains its impactful role in the mortgage services and financing industry as its revenue was reported to be $21.2 billion in FY 2023.

It recently introduced the DPA One® tool which is used for down payment assistance and expansions in financing for affordable housing. Such initiatives show Freddie Mac's duty to adapt and serve diverse housing needs.

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