Freddie Mac Acquisitions

Freddie Mac operates a high-capacity, low-overhead secondary mortgage market securitization and credit guaranty business model divided into two core operating segments: (1) Single-Family Business (~86% of net revenue), which purchases conventional conforming single-family home loans from thousands of primary lenders, packages them into Uniform Mortgage-Backed Securities (UMBS), and guarantees the timely payment of principal and interest to institutional investors in exchange for a recurring guaranty fee (typically averaging 45 to 55 basis points annually on the outstanding principal balance); and (2) Multifamily Business (~14% of net revenue), which finances apartment communities and workforce rental housing primarily through its proprietary K-Deal securitization platform, where Freddie Mac securitizes multifamily loans and sells subordinate credit loss tranches directly to private institutional investors without taking first-loss risk. Freddie Mac monetizes its $3.7 trillion platform through recurring credit guarantee fees, loan administration spreads, and net interest income earned on its retained investment liquidity portfolio.