Emergency Home Finance Act of 1970

The Emergency Home Finance Act of 1970 created Freddie Mac and authorized it to create a secondary market for conventional mortgages. Parallel authority and limitations to deal in conventional mortgages was given to Fannie Mae. To alleviate credit concerns raised by acquisition of conventional mortgages, several eligibility restrictions and/or risk sharing requirements were imposed on the mortgages Fannie Mae and Freddie Mac could buy.