The company was established in 1970 with the aim of expanding the secondary market for mortgages in the United States. An investment rate grading of A1 was granted to the organization until . The Federal National mortgage Association form 1938 to 1968 played an instrumental role in mortgage lending and effective insurance by the US Government.

In order to oversee 12 federal home loan banks, the Federal Housing Finance Board was established. In 2018, Freddie Mac was called as one of the best places to work for LGBTQ Equality in the Human Rights Campaign.