The Federal Home Loan Mortgage Corporation’s Path to $1.8 Trillion in Home Equity Loans

This note discusses Freddie Mac’s (The Federal Home Loan Mortgage Corporation’s nickname) proposal to purchase second mortgages, potentially unlocking up to $1.8 trillion in lending to homeowners. The initiative aims to allow homeowners to access the significant appreciation in home equity without losing the benefit of low first mortgage rates. I’ll outline the problems the proposal addresses, its potential scale, and the benefits for homeowners.

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