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A federally chartered corporation that purchases residential mortgages, securitizes them, and sells them to investors; this provides lenders with funds that can be used to make loans to homebuyers.
- Browse Related Terms: Chapter 7 Bankruptcy, Federal Home Loan Mortgage Corporation (Freddie Mac), Federal National Mortgage Association (Fannie Mae), Investment Property, Mortgage-Backed Securities (MBS), Preferred Stock, Primary Mortgage Market, Secondary Mortgage Market, Securitization