The Federal Home Loan Mortgage Corporation (FHLMC), known as Freddie Mac, was created by Congress in 1970 to provide liquidity and affordability in the U.S. housing market. Freddie Mac is considered a government sponsored entity. Freddie Mac does not lend directly to borrowers. Like Fannie Mae, its primary activity is to buy residential mortgage loans originated by lenders, then package those loans as securities for the capital markets.