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Federal Home - FMCC STOCK NEWS

Welcome to our dedicated page for Federal Home news (Ticker: FMCC), a resource for investors and traders seeking the latest updates and insights on Federal Home stock.

Overview of Freddie Mac (FMCC)

Freddie Mac (FMCC) is a pivotal institution in the United States housing finance landscape. With a mission to make home possible for millions of families, the company provides essential mortgage capital to lenders, facilitating liquidity in the market while ensuring affordability and stability. Operating from a foundation established by congressional mandate in 1970, Freddie Mac has continuously supported both single-family and multifamily segments by offering reliable financial products and risk management solutions.

Core Business and Operations

The company’s core business revolves around securing liquidity and promoting stability within the housing market. It achieves this through:

  • Mortgage Capital Provision: Freddie Mac supplies significant mortgage capital to lending institutions, thus enabling home purchases and refinancing activities.
  • Credit Risk Transfer: Through innovative instruments like the Structured Agency Credit Risk (STACR) notes and Agency Credit Insurance Structure (ACIS) programs, the company transfers credit risk from taxpayers to private global capital, enhancing market stability.
  • Securitization: By securitizing mortgage loans, Freddie Mac effectively offloads risk and supports continuous capital flow into the housing market.
This multifaceted approach enables Freddie Mac to operate as a key liquidity provider (using techniques such as risk transfer and securitization) without compromising on the goal of affordable housing accessibility.

Market Position and Industry Impact

Freddie Mac holds a strategic position within the competitive housing finance market. It is recognized for its robust and diversified business model that not only supports direct mortgage financing but also strengthens the overall lending ecosystem. The company’s dynamic risk management frameworks and capital market engagements provide it with significant resilience during various economic cycles. Its role in securitizing a broad spectrum of mortgage loans underlines its commitment to stability, ensuring that both lenders and investors have access to reliable, long-term financial products.

Business Model and Value Proposition

The company’s business model is underpinned by key components aimed at sustaining market confidence and enhancing affordability:

  • Providing Mortgage Capital: By furnishing lenders with the necessary funds, Freddie Mac facilitates home ownership and rental viability for millions of households.
  • Innovative Risk Transfer Mechanisms: Credit risk transfer programs protect taxpayers and enable the distribution of financial risk to private investors, showcasing a tailored approach to managing market uncertainties.
  • Securitization of Mortgage Loans: This process not only boosts liquidity but also supports broader investment frameworks, thereby integrating the housing finance system with global capital markets.
Each aspect of Freddie Mac’s business model is designed to maintain long-term economic stability and affordability in housing, benefiting diverse stakeholders including homebuyers, renters, lenders, and investors.

Industry Relevance and Competitive Landscape

Within the housing finance sector, Freddie Mac is both influential and unique. By leveraging advanced financial instruments, the company mitigates common market challenges such as liquidity gaps and heightened credit risk. It remains a primary contributor to ensuring that mortgage markets are resilient, particularly in times of economic turbulence. Compared to its peers, Freddie Mac distinguishes itself through a balanced combination of governmental oversight, rigorous market discipline, and extensive experience in risk transfer. This unique integration of public purpose with private capital infusion reinforces its authoritativeness and trustworthiness in the industry.

Expert Insights into Freddie Mac's Strategic Approach

The company’s approach is built on a foundation of deep industry knowledge and innovative financial strategies. By continuously refining its risk transfer mechanisms and maintaining strict regulatory alignment, Freddie Mac has cemented its role as a facilitator of affordable housing solutions. This dual commitment—supporting both the availability of mortgage capital and the overall stability of the housing market—forms the cornerstone of its value proposition and operational excellence.

Conclusion

Freddie Mac (FMCC) remains a critical entity in ensuring access to affordable housing across the nation. Through its robust capital provision, sophisticated securitization processes, and strategic risk transfer programs, the company delivers a comprehensive and sustainable framework that benefits lenders, investors, and homebuyers alike. Its enduring dedication to liquidity, stability, and affordability underscores its significance in the U.S. housing finance sector.

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced it will voluntarily delist its last NYSE-traded security, the Debt Securities Due 2025 (CUSIP 3134A2HG6), ticker symbol FMCC 25Z, issued in 1998. The delisting process involves filing a Form 25 with the SEC and NYSE after a ten-day notice period, with the last trading day expected around July 1. Freddie Mac has not arranged for listing the bond on another exchange or quotation medium. This move follows the delisting of its common stock from the NYSE in 2010, directed by the Federal Housing Finance Agency. The delisting is meant to avoid unnecessary rules and administration related to its government conservatorship.

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Freddie Mac (OTCQB: FMCC) reported issuing $1.85 billion in Single-Family Green Mortgage-Backed Securities (MBS) in 2023, marking a 35% increase from 2022, despite a general market decline. This issuance now represents a core business segment, doubling its share of Freddie Mac's total MBS issuance.

The 2023 Green MBS program has significant impacts, including energy savings equating to powering 2,000 homes annually, avoiding greenhouse gas emissions akin to removing 2,700 cars, and saving homeowners nearly $700 on yearly utility costs.

From 2021 through 2023, the program's total issuance reached $3.8 billion, covering over 10,000 mortgages. The 2024 plans include refining energy efficiency criteria, streamlining offerings, and establishing standards for continued growth.

Updated reports for 2021 and 2022 reflect corrected energy savings and emissions reduction estimates. The mission of Freddie Mac is to ensure housing market liquidity, stability, affordability, and equity.

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Freddie Mac (OTCQB: FMCC) has reported a decrease in mortgage rates in its latest Primary Mortgage Market Survey® (PMMS®). As of June 6, 2024, the 30-year fixed-rate mortgage (FRM) averaged 6.99%, down from 7.03% the previous week. Additionally, the 15-year FRM averaged 6.29%, a slight decrease from 6.36% last week. Despite a slower growth rate in the economy, Freddie Mac's Chief Economist, Sam Khater, anticipates modest declines in mortgage rates for the remainder of 2024. Potential homebuyers are advised to shop around for the best rates. A year ago, the 30-year FRM was 6.71%, and the 15-year FRM was 6.07%.

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Freddie Mac (OTCQB: FMCC) released its Monthly Volume Summary for April 2024. The report includes data on mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities, and other investments. This initiative aligns with the company's mission to enhance market liquidity, stability, and affordability for U.S. families. Freddie Mac has been instrumental in helping millions of families buy, rent, or keep their homes since 1970.

For more details, access the full report on Freddie Mac's website or contact their media or investor representatives.

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Freddie Mac's latest Primary Mortgage Market Survey® (PMMS®) reveals an increase in mortgage rates. As of May 30, 2024, the 30-year fixed-rate mortgage (FRM) averaged 7.03%, up from 6.94% the previous week and 6.79% a year ago. Similarly, the 15-year FRM averaged 6.36%, rising from last week's 6.24% and last year's 6.18%. Chief Economist Sam Khater attributes the hike to inflation concerns and tepid demand for longer-dated Treasury auctions, which pushed market yields up. These factors, coupled with stagnant economic signals, have led to higher mortgage rates. The PMMS® focuses on conventional, conforming, fully amortizing home purchase loans for borrowers with excellent credit and a 20% down payment.

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Freddie Mac (OTCQB: FMCC) has awarded INB, N.A. one of its Home Possible RISE Awards®. This annual recognition celebrates Freddie Mac's top clients who excel in providing affordable lending solutions for very low- to low-income homebuyers through the Home Possible® and HFA Advantage® mortgage products.

INB, N.A., recognized for its dedication to first-time buyers and families who face homeownership affordability challenges, distinguishes itself as a key player in making homeownership attainable. The award highlights INB's sustained excellence and impactful work in helping families secure sustainable homeownership.

The comprehensive list of award winners can be viewed at SF.FreddieMac.com/RISE. For more information on INB and its services, visit www.inb.com.

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Freddie Mac (OTCQB: FMCC) reported a decline in mortgage rates in its Primary Mortgage Market Survey® (PMMS®). The 30-year fixed-rate mortgage (FRM) averaged 6.94% as of May 23, 2024, down from 7.02% the prior week. The 15-year FRM also dropped to 6.24% from 6.28%. This significant drop below 7% for the first time in over a month offers a potential boost for the housing market. Despite a decline in previously owned home sales, the inventory of both new and existing homes has increased. Freddie Mac aims to enhance liquidity, stability, affordability, and equity in the housing market.

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Freddie Mac has announced the pricing of its Seasoned Loans Structured Transaction Trust (SLST) Series 2024-1, a securitization valued at approximately $297.5 million. The transaction includes both guaranteed senior and non-guaranteed subordinate securities backed by a pool of seasoned residential mortgage loans. The SLST program is a key component of Freddie Mac's strategy to reduce less-liquid assets and mitigate credit and market risks. This marks the first issuance of floating rate certificates in Freddie Mac's re-performing loan securitizations. The transaction comprises $275.2 million in guaranteed senior certificates and $22.3 million in non-guaranteed subordinate certificates, with an expected settlement date of May 29, 2024. The underlying collateral consists of 1,863 seasoned loans, serviced by Select Portfolio Servicing Inc. and NewRez Advisors for this transaction include BofA Securities, Wells Fargo Securities, Citigroup Global Markets, and Academy Securities.

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Freddie Mac has released its Primary Mortgage Market Survey® (PMMS®) on May 16, 2024, showing a slight decrease in mortgage rates for the second consecutive week. The 30-year fixed-rate mortgage (FRM) averaged 7.02%, down from 7.09% the previous week. Comparatively, it was 6.39% a year ago. The 15-year FRM averaged 6.28%, down from 6.38% last week, and 5.75% a year ago. This decrease is attributed to a slight easing in inflation and a dip in the 10-year Treasury yield. These lower rates may offer some financial relief to prospective homebuyers.

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Freddie Mac announced the winners of its 2024 Home Possible RISE Awards®, recognizing top Sellers for excellence in providing affordable lending solutions for very low- to low-income homebuyers. The awards honor companies committed to sustainable homeownership, with Freddie Mac purchasing over 96,000 Home Possible and HFA Advantage loans in 2023, supporting first-time homebuyers.

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FAQ

What is the current stock price of Federal Home (FMCC)?

The current stock price of Federal Home (FMCC) is $5.71 as of April 1, 2025.

What is the market cap of Federal Home (FMCC)?

The market cap of Federal Home (FMCC) is approximately 3.3B.

What is the primary role of FMCC?

FMCC provides essential mortgage capital to lenders, facilitating liquidity and supporting the U.S. housing finance system while promoting affordable housing.

How does Freddie Mac support affordable housing?

By offering mortgage capital and deploying structured credit risk transfer programs, FMCC helps maintain affordable housing options for families across the nation.

What are the key components of FMCC's business model?

FMCC's business model centers on providing mortgage capital, securitizing mortgage loans, and implementing risk transfer mechanisms to ensure market stability and liquidity.

What is credit risk transfer and why is it important for FMCC?

Credit risk transfer involves shifting risk from taxpayers to private capital through instruments like STACR notes, which helps bolster the stability of the housing finance market.

How does FMCC differentiate itself from other entities in the housing finance market?

FMCC differentiates itself through its innovative financial instruments, comprehensive securitization practices, and a focused mission on promoting liquidity and affordability in housing.

Which market segments does FMCC serve?

FMCC plays a critical role in both the single-family and multifamily housing sectors, ensuring that a wide range of borrowers have access to affordable financing solutions.
Federal Home

OTC:FMCC

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FMCC Stock Data

3.31B
650.06M
8.27%
7.96%
Mortgage Finance
Financial Services
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United States
McLean