The Federal Home Loan Mortgage Corporation
(FHLMC), known as Freddie Mac, was set up as a government-sponsored enterprise (GSE) in 1970, but founded in 1938 during the Great Depression. to expand the secondary market for mortgages in the US. Along with other GSEs, Freddie Mac buys mortgages on the secondary market, pools them, and sells them as a mortgage-backed security to investors on the open market. Freddie Mac was taken over by the federal government in 2008.