First, for those who are
really new to the process of buying a home, here’s a little bit of background. The Federal Home Loan Mortgage Corporation
(FHLMC), commonly referred to as ‘Freddie Mac’ is a corporation authorized by
Congress to provide a secondary market for residential mortgages. It is a public government-sponsored
enterprise (GSE), which buys mortgages
on the secondary market, pools them, and sells them as a mortgage-backed
security (MBS) to investors on the open market. This secondary mortgage market
increases the supply of money available for mortgage lending and increases the
money available for new home purchases.
You may have heard of Freddie Mac’s sister, Fannie Mae, another GSE. They’ve both been in the news a lot over the
last few years. Not as much as the Kardashian’s,
but still quite a lot.
Freddie Mac has come out with a free
12 part consumer tutorial called CreditSmart®.
The stated goals of this program are to understand the importance of building credit, see how lenders assess your eligibility
for a mortgage loan, recognize the warning signs of predatory lending and
scams, learn the steps to successful homeownership and safeguard your home and
your finances against life’s unexpected challenges. It also has a module that talks about what to
do if you ever have difficulty making your mortgage payments.
It’s recommended that you take the modules in order to get the most out of
the program. Each module can take up to
20 or 30 minutes, but you can do them at your own pace. If you’re a potential first time buyer, or if you have bruised credit and are thinking
about a home purchase, you would be well off to go through this series. You can find it here.
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