[Congressional Record Volume 141, Number 129 (Friday, August 4, 1995)]
[Extensions of Remarks]
[Page E1634]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]


      FREDDIE MAC'S 25TH ANNIVERSARY JULY 24, 1970--JULY 24, 1995

                                 ______


                         HON. RICHARD H. BAKER

                              of louisiana

                    in the house of representatives

                        Thursday, August 3, 1995
  Mr. BAKER of Louisiana. Mr. Speaker, 25 years ago, Congress took a 
bold and innovative approach to help millions of American families own 
a home. During 1969 and 1970, hard-working Americans who wanted to buy 
a home were confronted with an economic nightmare of high inflation and 
escalating interest rates. In short, money to buy a home was scarce and 
expensive.
  On July 24, 1970, in response to the collapse of the country's 
mortgage finance system, Congress created the Federal Home Loan 
Mortgage Corporation, commonly known as Freddie Mac. Its mission was 
clear: to help Americans buy homes by tapping a consistent flow of 
funds from national and international capital markets.
  Freddie Mac has dedicated its resources and innovation to fulfilling 
that mission. Since 1970, Freddie Mac has purchased $1.2 trillion in 
mortgage loans, which has enabled 16 million American families achieve 
the dream of an affordable and decent house.
  Freddie Mac purchases mortgage loans from lenders, packages these 
loans into securities, and sells these securities to investors. Through 
this process, Freddie Mac has created a broad, liquid, and efficient 
nationwide secondary mortgage market that is the envy of the world.
  As my colleagues are acutely aware, in these times of severe budget 
restraints, it is important that the private and the public sector join 
as partners to increase housing opportunities for low- and moderate-
income families. Freddie Mac is an exemplary model of this partnership. 
Freddie Mac has worked with State and local governments to leverage 
resources for homeowners across the Nation. In addition, Freddie Mac 
has increased its mortgage purchases of low- and moderate-income 
homebuyers from 28 percent in 1993 to 38 percent in 1994. Many of these 
mortgages are for homes owned by minority homebuyers and in central 
cities and in rural areas.
  Mr. Speaker, by every measure Freddie Mac is a great success. As we 
work to consolidate government to serve taxpayers more effectively, we 
call on Freddie Mac to continue its commitment to all American 
homebuyers from all walks of life.
  I am sure that my colleagues and the American people join me in 
expressing our appreciation and congratulations to Freddie Mac on their 
25th anniversary. We wish Freddie Mac well in its next 25 years.


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