The Federal Home Loan Mortgage Corporation (Freddie Mac) is a government-sponsored enterprise that plays a crucial role in the United States housing market. It was created to support the availability of mortgage credit for homeowners and renters. Freddie Mac operates by purchasing mortgage loans from lenders, which in turn provides liquidity to the mortgage market. By doing so, it helps to make home loans more accessible and affordable for potential homeowners. Freddie Mac also sets standards for mortgage underwriting and provides resources to help borrowers make informed decisions about homeownership.