Federal Home - FMCC STOCK NEWS

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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.

02/08/2024 12:00 PM

News

Mortgage Rates Show Little Movement

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Freddie Mac released the results of its Primary Mortgage Market Survey showing that the 30-year fixed-rate mortgage averaged 6.64 percent. The economy and labor market remain strong with wage growth outpacing inflation, keeping consumer spending robust. However, affordability in the housing market is an ongoing issue due to continued high home prices, elevated mortgage rates, and low supply of homes on the market.

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02/05/2024 10:00 AM

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Freddie Mac Expands Assistance for Very Low-Income Purchase Borrowers

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Freddie Mac announces a $2,500 credit to help low-income families with down payment and closing costs, extending the initiative to very low-income families who qualify for the Home Possible and HFA Advantage products. The credit will be available for borrowers earning 50% of area median income or less and will be effective from March 1, 2024. Freddie Mac financed approximately 800,000 home purchases in 2023, with first-time homebuyers representing 51% of those purchases, the highest percentage in three decades. The company expects to achieve all of its 2023 affordable housing goals set by the Federal Housing Finance Agency.

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02/01/2024 12:00 PM

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Mortgage Rates Tick Down

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Freddie Mac's Primary Mortgage Market Survey (PMMS) reveals that the 30-year fixed-rate mortgage averaged 6.63 percent, down from 6.69 percent last week, with a year-on-year increase from 6.09 percent. The 15-year FRM also decreased from 5.96 percent to 5.94 percent, compared to 5.14 percent a year ago. The stable mortgage rates, along with favorable economic conditions, job growth, and household formation, are expected to support a robust housing market in the coming months.

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01/25/2024 04:32 PM

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Freddie Mac Issues Monthly Volume Summary for December 2023

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Freddie Mac (FMCC) released its Monthly Volume Summary for December 2023, showcasing data on mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities, and other investments. The report highlights the company's mission to promote liquidity, stability, affordability, and equity in the housing market, emphasizing its impact on millions of families since 1970.

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01/25/2024 12:00 PM

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Mortgage Rates Inch Up but Remain in the Mid-Six Percent Range

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Freddie Mac (FMCC) released the results of its Primary Mortgage Market Survey® (PMMS®), showing the 30-year fixed-rate mortgage (FRM) averaged 6.69 percent. The 30-year FRM averaged 6.69 percent as of January 25, 2024, up from last week when it averaged 6.60 percent. A year ago at this time, the 30-year FRM averaged 6.13 percent. The 15-year FRM averaged 5.96 percent, up from last week when it averaged 5.76 percent. A year ago at this time, the 15-year FRM averaged 5.17 percent. Despite persistent inventory challenges, Freddie Mac anticipates a busier spring homebuying season than 2023, with home prices continuing to increase at a steady pace.

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01/23/2024 10:04 AM

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Freddie Mac Releases Updated Single-Family Social Bond Framework

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Freddie Mac announces updated Single-Family Social MBS and Corporate Debt Bonds Framework to support underserved borrowers. The company aims to provide mission-driven investment opportunities and actionable information to MBS investors. The framework includes the renaming and reformulation of the Mission Index and sets criteria for eligible mortgage collateral. The company plans to provide Social MBS impact reporting annually beginning in 2025.

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01/22/2024 02:00 PM

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Freddie Mac Multifamily Supports Over 423,000 Affordable Rental Units in 2023, on Track to Exceed Affordable Housing Goals

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Freddie Mac Multifamily announced that its 2023 volume totaled over $49 billion, including $48.3 billion in multifamily financing and over $883 million in Low-Income Housing Tax Credit (LIHTC) equity investments. The company exceeded its mission-driven affordable housing targets, supporting 423,177 affordable rental units across the United States. 66% of 2023 production volume qualified as 'mission-driven affordable housing,' surpassing the 50% goal set by FHFA. More than 67% of goal-eligible units financed through loan acquisitions were affordable to low-income residents earning less than 80% of area median income (AMI), and more than 20% were affordable to very low-income residents with incomes no greater than 50% of AMI, surpassing both goals. 92% of all units financed in 2023 were affordable at or below 120% of AMI.

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01/18/2024 12:00 PM

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Mortgage Rates Decrease to Lowest Level Since May of 2023

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Freddie Mac reports a decrease in mortgage rates, with the 30-year fixed-rate mortgage dropping to 6.60 percent, the lowest level since May 2023. This is encouraging for first-time homebuyers but could put pressure on the already depleted housing inventory.

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01/17/2024 09:00 AM

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Roy Swan to Join Freddie Mac’s Board of Directors

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Freddie Mac (FMCC) appoints Roy Swan, an experienced executive in law, banking, corporate finance, and investment management, to its Board of Directors. Swan's extensive background in financial services and impact investing makes him uniquely qualified for the role. His election is set to take effect on February 19, 2024.

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01/11/2024 12:00 PM

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Mortgage Rates Continue to Hover in the Mid-Six Percent Range

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Freddie Mac (FMCC) reports 30-year fixed-rate mortgage averaging 6.66 percent, causing homebuyer demand to increase slightly. Affordability remains a major headwind for buyers, with prices rising faster than incomes.

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FAQ

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

The current stock price of Federal Home (FMCC) is $4.84 as of March 17, 2025.

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

The market cap of Federal Home (FMCC) is approximately 3.5B.

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.