What is one of the main functions of the Federal Home Loan Mortgage Corporation (Freddie Mac)?

The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, primarily serves to facilitate the secondary mortgage market. This organization plays a crucial role in providing liquidity, stability, and affordability to the mortgage market by purchasing loans from lenders, thus allowing those lenders to reinvest their capital and issue more loans. By doing so, Freddie Mac helps to ensure that mortgage funds are readily available and accessible to borrowers, which helps to stabilize the housing market, particularly during times of financial strain.

The secondary mortgage market functions as a marketplace where existing mortgage loans are bought and sold, and Freddie Mac is one of the key entities involved. Its operation ultimately promotes affordable housing opportunities and contributes to the overall strength of the U.S. housing finance system. Other roles or functions mentioned in the alternative choices do not accurately reflect Freddie Mac’s primary responsibilities; for instance, deposit insurance and credit score management fall outside its mandate, while property value evaluation typically falls under the expertise of appraisers or assessors rather than Freddie Mac itself.