Freddie Mac (Federal Home Loan Mortgage Corporation) - A private, shareholder-owned company sponsored by the federal government to ensure that mortgage money is available for people in communities all across America. Similar in mission and economic role to Fannie Mae, Freddie Mac does not lend money directly to homebuyers; instead Freddie Mac purchases loans from lenders, which helps provide an assurance to those lenders that they won't run out of mortgage funds.

As a Government Sponsored Entity (GSE), Freddie Mac is subject to federal flood regulations. Therefore, lenders that either sell loans to Freddie Mac or service loans for Freddie Mac must ensure that those loans are compliant with federal flood regulations. Freddie Mac ensures compliance through its contractual relationships with participating lenders and servicers.