Which agency was created by Congress to specifically deal with the purchase of mortgage loans and related securities?

The Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, was specifically established by Congress to deal with the purchase of mortgage loans and related securities. Its primary purpose is to enhance the flow of funds to mortgage lenders, thereby making housing more accessible and affordable for American consumers. By purchasing mortgages on the secondary market, Freddie Mac provides liquidity and stability to the mortgage market, facilitating the availability of funds for new loans. This role is essential because it allows lenders to free up capital to issue more loans, thus supporting the housing market.

In contrast, other agencies listed have different primary roles. The Federal National Mortgage Association (Fannie Mae) also deals with mortgage loans but serves slightly different functions within the same context and does not specifically match the wording of the question as precisely as Freddie Mac does. The Federal Trade Commission focuses on consumer protection and competition in various markets, while the Department of Housing and Urban Development (HUD) oversees federal housing programs and works to ensure equal housing opportunities but does not directly purchase mortgage loans or securities.