Nationwide Mortgage Licensing System (NMLS) Practice Exam

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Prepare for the Nationwide Mortgage Licensing System (NMLS) Exam. Utilize flashcards and multiple choice questions, each with hints and explanations. Ensure your success by getting thoroughly prepared!

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Which organization was formerly known as the Federal Home Loan Mortgage Corporation?

  1. Federal National Mortgage Association

  2. Freddie Mac

  3. Fair Discount Interest Rates

  4. Free Certificate of Deposits

The correct answer is: Freddie Mac

The organization formerly known as the Federal Home Loan Mortgage Corporation is known as Freddie Mac. Freddie Mac was established in 1970 to enhance the flow of credit to the housing market, and its primary mission is to support the mortgage market by providing liquidity, stability, and affordability. By creating a secondary mortgage market, it helps financial institutions manage risk and provides consumers with access to affordable mortgages. This name change reflects its better-known abbreviation, and the organization has played a crucial role in expanding home ownership opportunities across the United States. The extensive involvement of Freddie Mac in the securitization of mortgages and its backing of mortgage loans allows for more standardized processes and increased confidence in the housing finance system.

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