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Article: Freddie Mac Propping Up Sick S&L; Line of Credit to Troubled Thrift May Violate Congressional Charter
- Article from:
- The Washington Post
- Article date:
- March 24, 1988
- Author:
CopyrightThis material is published under license from the Washington Post. All inquiries regarding rights should be directed to the Washington Post. (Hide copyright information)
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The Federal Home Loan Mortgage Corp., in a possible violation of
its congressional charter, is being used to provide billions of
dollars for the daily funding needs of the nation's largest ailing
savings and loan, sources said yesterday.
Congress chartered the Federal Home Loan Mortgage Corp., better
known as Freddie Mac, to increase the availability of home mortgages.
It does this by buying home loans from S&Ls and then using the
mortgages as collateral for securities sold to investors. The
process creates the so-called secondary mortgage market, providing
billions of dollars in additional money each year for home buyers to
borrow.
The Federal Home Loan Bank Board, the federal agency ...