Also referred to as "Freddie Mac," this government-sponsored enterprise is chartered by Congress and owned by stockholders. This agency buys qualified mortgage loans from the financial institutions that originate them, securitizes the loans, and distributes the securities through the dealer community. Freddie Mac guarantees timely payment of both principal and interest on its Gold Participation Certificates (PCs). Some older series of Freddie Mac PCs guarantee timely payment of interest and eventual payment of principal. These securities are not backed by the full faith and credit of the U.S. Government. The market value of these securities prior to maturity is not guaranteed and will fluctuate.