Who Really Owns Your Loan? Freddie Mae Loan Ownership Explained

Freddie Mac is one of the largest purchasers of mortgages in the United States. It was chartered by Congress in 1970 to keep money flowing to mortgage lenders in support of homeownership and rental housing. Its mission is to provide liquidity, stability and affordability to the U.S. housing market. It does not originate or service mortgages, but buys them from private lenders, who can then provide financing options to qualified borrowers. You can use the Freddie Mac loan look-up tool to find out if Freddie Mac owns your loan.

Freddie Mac's role in the housing market

Freddie Mac is a company that was chartered by Congress in 1970 to support the U.S. housing finance system and ensure a reliable and affordable supply of mortgage funds across the country. The company does not lend directly to borrowers but operates in the U.S. secondary mortgage market, buying loans that meet its standards from approved lenders. These lenders can then provide more loans to qualified borrowers, keeping capital flowing into the housing market. Freddie Mac pools the mortgages it buys into securities, which are then sold to investors worldwide.

Freddie Mac's mission is to provide liquidity, stability, and affordability to the U.S. housing market. The company serves America's homebuyers, homeowners, and renters through its Single-Family and Multifamily Divisions. The Single-Family Division keeps mortgage capital flowing by purchasing mortgage loans from lenders, who can then provide financing options to qualified borrowers. The Multifamily Division provides liquidity and stability to the rental housing market, improving access to quality, affordable housing.

Freddie Mac's collaboration with organisations like HomeFree-USA's Center for Financial Advancement and Soldier On has helped families achieve first-generation homeownership and provided financial enablement to homeless veterans. The company also works to protect affordable housing while retaining important cultural landmarks by supporting the renovation of historic properties.

Freddie Mac also provides resources to help individuals make informed decisions about renting or buying a home, such as the Rent vs. Buy calculator on My Home by Freddie Mac®. Additionally, the company offers a self-service loan lookup tool that allows individuals to find out if Freddie Mac owns their loan.

How to find out if Freddie Mac owns your loan

It is important to know who owns your loan to understand the options available for mortgage help. Freddie Mac, chartered by Congress in 1970, works to keep money flowing to mortgage lenders in support of homeownership and rental housing.

Freddie Mac, along with Fannie Mae, provides a self-service loan lookup tool to help you find out if they own your loan. You can access this tool on their website. The tool requires you to fill out a short form with your name, the last four digits of your social security number, and your property address. It is important to enter your information carefully, as spelling errors, abbreviations, or typos can lead to inaccurate results. If Freddie Mac owns your loan, the tool will show a match. If not, it will indicate that no match was found.

Once you know that Freddie Mac owns your loan, you can contact your loan servicer (the company you make your mortgage payments to) to discuss your options. If you are having difficulty paying your mortgage on time, your loan servicer should be your first point of contact for assistance. Their contact information should be listed on your monthly statement.

Additionally, knowing if Freddie Mac owns your loan can be helpful in determining your eligibility for loan modifications or foreclosure prevention options. For example, one of the key requirements for mortgage forbearance approval under the CARES Act is ensuring that your loan is owned or guaranteed by Freddie Mac or Fannie Mae.

What to do if Freddie Mac owns your loan

If you're a homeowner who used a mortgage to purchase your property, it wouldn't be uncommon to receive a letter from Freddie Mac stating that they have purchased your loan. If you receive such a letter, check that the balance on the letter is correct. If there's a discrepancy between the balance stated in the letter and what you believe your loan balance to be, contact your servicer (i.e., the company to which you send your mortgage payments). The letter may have been issued before you made a payment.

Other than that, you can keep the letter for your records, but there is nothing else you need to do. The letter is a formality, and the sale does not affect any term, payment, or condition of your mortgage. Your servicer stays the same, as does your payment amount, your interest rate, and all other terms of your loan. In other words, continue to make your monthly mortgage payments as usual.

If you are having difficulty paying your mortgage on time, your lender (also referred to as a mortgage servicer) should be your first call for assistance. Their telephone number and mailing address should be listed on your monthly statement. There are also many other parties who can help you, including housing counselors, Freddie Mac Borrower Help Centers, and others.

Freddie Mac also provides a Rent vs. Buy calculator to help you assess the different financial impacts of renting and owning, using your own financial information.

The benefits and drawbacks of Freddie Mac owning your loan

Freddie Mac, the colloquial term for the Federal Home Loan Mortgage Corporation, is a government-sponsored enterprise that plays a critical role in financing housing for families in the United States. It is neither a lender nor a government agency, but it has a large influence on the availability and price of home loans, which affects how affordable housing is.

If Freddie Mac owns your loan, there are several benefits and drawbacks to consider.

Benefits

• Freddie Mac's primary business is to purchase loans from lenders to replenish their funds so that they can make more mortgage loans to borrowers. This means that your loan is helping to provide liquidity, stability, and affordability to the housing market.
• Freddie Mac's Single-Family Division keeps mortgage capital flowing by purchasing mortgage loans from lenders, which allows them to provide financing options to qualified borrowers. Their Multifamily Division also provides liquidity and stability to the rental housing market, improving access to quality, affordable housing.
• Freddie Mac's Rent vs. Buy calculator can help you assess the different financial impacts of renting and owning a home, using your own financial information.

Drawbacks

• Freddie Mac does not make loans directly to homebuyers, so you will still need to work with a lender or mortgage servicer for any questions or issues related to your loan.
• If you are having difficulty paying your mortgage, your lender or mortgage servicer should be your first point of contact for assistance, rather than Freddie Mac.
• While Freddie Mac sets the loan amount and pricing parameters for the loans it guarantees, loans that fall within these parameters are seen as less risky and are therefore cheaper to obtain than larger loans. This could be a drawback if you have a larger loan that does not fit within Freddie Mac's parameters.

The process of refinancing a loan owned by Freddie Mac

To refinance a loan owned by Freddie Mac, you can use the Freddie Mac Refi Possible program. This program is designed to help low- and moderate-income homeowners refinance their mortgages to lower their monthly payments. It offers flexible options for those who may not qualify for traditional refinance programs, such as borrowers with higher debt-to-income (DTI) ratios or those with limited funds to pay for upfront appraisal costs.

To be eligible for Refi Possible, the mortgage must currently be owned by Freddie Mac. You can use the Freddie Mac Loan Look-Up Tool to find out if Freddie Mac owns your current loan. This tool requires you to enter your information carefully, as a small mistake could cause an inaccurate result.

If you are a servicer of a loan being refinanced and your records indicate that the loan is owned by Freddie Mac, but you are receiving an error message stating that the loan being refinanced must match an active Freddie Mac-owned loan, you should verify the property street address and SSN of all borrowers on the current loan and then resubmit. If the error persists, contact the Customer Support Contact Center (800-FREDDIE) for assistance.

Freddie Mac's cash-out refinance mortgage options can help borrowers leverage home equity for immediate cash flow. This can be used for consolidating debt, obtaining cash for home improvements, reducing a rate and monthly payment, paying off a purchase money junior lien, or paying off a leasehold interest. All related closing costs, financing costs, and prepaid items can be rolled into the new loan amount.

Additionally, Freddie Mac's Rent vs. Buy calculator can help you assess the financial impacts of renting and owning, and their website provides resources and information on getting help with your mortgage.

Frequently asked questions