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.

12/04/2023 01:00 PM

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Freddie Mac Announces Action to Make Down Payment Assistance Programs More Accessible for Individuals and Families Across the Nation

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Freddie Mac (FMCC) introduces standardized mortgage documents to remove barriers to down payment assistance programs, aiming to increase clarity and accessibility for homebuyers. The initiative seeks to eliminate confusion and misinterpretation of DPA programs, historically hindered by varying forms. Single-Family Senior Vice President Danny Gardner emphasizes the importance of standardization in increasing efficiency, lowering costs, and improving the mortgage industry. The initiative is expected to bring efficiency to the loan manufacturing process, creating time and cost-saving opportunities across the industry, ultimately enabling more lenders to help more individuals and families leverage down payment assistance programs nationwide.

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11/30/2023 12:00 PM

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Mortgage Rates Drop for the Fifth Consecutive Week

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Freddie Mac (FMCC) reports a decline in mortgage rates, with the 30-year fixed-rate mortgage averaging 7.22 percent, down from last week's 7.29 percent and significantly higher than the 6.49 percent from a year ago. The 15-year FRM also decreased to 6.56 percent from 6.67 percent last week and 5.76 percent a year ago. The company aims to make home ownership possible for families, promoting liquidity, stability, affordability, and equity in the housing market.

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11/30/2023 10:23 AM

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Freddie Mac Earns Perfect Score on Human Rights Campaign 2023-2024 Corporate Equality Index

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Freddie Mac (FMCC) earns 100% on the 2023-2024 Corporate Equality Index (CEI) by the Human Rights Campaign (HRC), showcasing its commitment to LGBTQ+ inclusion. The company has been designated as a Best Place to Work for LGBTQ+ Equality, receiving the Equality 100 Award. Freddie Mac's efforts include inclusive employee benefits, antidiscrimination policies, and promoting inclusion within the housing industry.

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11/22/2023 12:00 PM

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Mortgage Rates Continue to Slide Down

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Freddie Mac (FMCC) reports a decrease in 30-year fixed-rate mortgage (FRM) to 7.29 percent, down from 7.44 percent last week and 6.58 percent a year ago. The 15-year FRM also decreased to 6.67 percent from 6.76 percent last week and 5.9 percent a year ago. Existing home sales have fallen to a thirteen-year low, reflecting potential homebuyers holding out for lower rates and more inventory.

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11/21/2023 04:39 PM

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Freddie Mac Issues Monthly Volume Summary for October 2023

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

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11/16/2023 12:00 PM

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Mortgage Rates Trend Down

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Freddie Mac (FMCC) reports that the 30-year fixed-rate mortgage averaged 7.44 percent, down from 7.5 percent last week, indicating a downward trend due to receding inflationary pressures. The 15-year fixed-rate mortgage also decreased to 6.76 percent from 6.81 percent last week. This suggests that lower mortgage rates, combined with economic strength and lower inflation, may attract more potential homebuyers into the market.

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11/14/2023 03:30 PM

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Freddie Mac Multifamily Loan Purchase Cap for 2024 is $70 Billion

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Freddie Mac (FMCC) Multifamily's loan purchase cap for 2024 will be $70 billion, with 50% of loans purchased required to be mission-driven. This includes loans supporting affordable housing, workforce housing, rural properties, and energy- or water-efficiency improvements. Loans classified as supporting workforce housing properties will be exempt from the 2024 volume cap, encouraging affordability preservation. FHFA's updated criteria for Freddie Mac's mission-driven business aim to provide liquidity, stability, and affordability to the multifamily market, emphasizing the countercyclical role of Freddie Mac.

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11/10/2023 09:00 AM

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Freddie Mac Announces Results of Tender Offer for Certain STACR Notes

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Freddie Mac (FMCC) announced the tender results of its offer to purchase any and all of the STACR® (Structured Agency Credit Risk) Notes. Approximately $2.1 billion aggregate original principal amount of the Notes had been validly tendered and not properly withdrawn. The settlement date for the Notes tendered and accepted for purchase in the Offer is expected to occur on Tuesday, November 14, 2023.

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11/09/2023 12:00 PM

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As Treasury Yields Decline, Mortgage Rates Move Down

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Freddie Mac (FMCC) reports 30-year fixed-rate mortgage averaging 7.5%, down from last week, largest one-week decrease since last November. Household debt continues to rise, straining consumers. 15-year FRM also down to 6.81%.

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11/07/2023 10:05 AM

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Lance F. Drummond Elected Chair of Freddie Mac

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Sara Mathew, the current Board Chair of Freddie Mac, will retire in February 2024. Lance Drummond, a member of the Board since 2015, will succeed her as the new Board Chair.

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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.