FREDDIE MAC - FMCC STOCK NEWS

Freddie Mac's Primary Mortgage Market Survey® (PMMS®) shows mortgage rates remained flat this week, with the 30-year fixed-rate mortgage (FRM) averaging 6.35%, unchanged from last week. The 15-year FRM averaged 5.47%, down from 5.51% last week. Compared to a year ago, both rates are significantly lower, with the 30-year FRM down from 7.12% and the 15-year FRM down from 6.52%.

Sam Khater, Freddie Mac's Chief Economist, noted that markets are awaiting the August jobs report. Despite lower rates, home sales have been lackluster. However, homeowners who bought in recent years are taking advantage of declining rates to lower their monthly payments through refinancing.

Freddie Mac (OTCQB: FMCC) has announced a $233 million non-performing loan (NPL) sale via auction. The offering includes a Standard Pool Offering (SPO) and two Extended Timeline Pool Offerings (EXPO) targeting smaller investors, including non-profits and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs). Bids are due by September 26, 2024 for the SPO pool and October 10, 2024 for the EXPO pools.

The NPLs consist of seasoned, deeply delinquent residential first lien whole loans from Freddie Mac's mortgage-related investments portfolio. This sale is part of Freddie Mac's strategy to reduce less-liquid assets in an economically sensible way. Since 2011, Freddie Mac has sold $10.3 billion of NPLs and securitized approximately $78.6 billion of re-performing loans (RPLs).

Freddie Mac's Primary Mortgage Market Survey® reveals a decline in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.35%, down from 6.46% last week and 7.18% a year ago. The 15-year FRM also dropped to 5.51% from 5.62% last week and 6.55% a year ago. Chief Economist Sam Khater attributes this decrease to expectations of a Fed rate cut.

Khater predicts rates will continue to fall but notes that a rebound in purchase activity remains elusive until further declines occur. The survey focuses on conventional, conforming home purchase loans for borrowers with 20% down payment and excellent credit. Freddie Mac aims to promote liquidity, stability, affordability, and equity in the housing market throughout economic cycles.

Freddie Mac (OTCQB: FMCC) has announced a fixed-price cash tender offer for the purchase of any and all of certain STACR® (Structured Agency Credit Risk) Notes. The offer begins on August 29, 2024, and expires at 5 p.m. New York City time on September 5, 2024, unless extended. Freddie Mac has engaged Citigroup Global Markets Inc. and BofA Securities, Inc. as lead dealer managers and Academy Securities, Inc. as co-dealer manager for the offer.

The tender offer includes various STACR Notes with original principal amounts ranging from $20 million to $447 million. The Tender Offer Consideration per $1,000 original principal amount varies from $1,001.50 to $1,160.00, depending on the specific Note. Holders who tender their Notes will receive accrued and unpaid interest. The expected Settlement Date is September 9, 2024.

Freddie Mac Multifamily has released a policy framework for minimum lease standards at multifamily properties with new enterprise-backed loans. The standards, announced by the FHFA in July, include a 5-day grace period for rent payments, a 30-day notice for rent increases, and a 30-day notice of lease expiration. These requirements will apply to new loans under application starting February 2025.

The policy framework, published jointly with Fannie Mae, outlines implementation, monitoring, and enforcement provisions. Freddie Mac's head of Multifamily, Kevin Palmer, stated that these standards aim to extend common baseline tenant protections. The company conducted research and engaged with stakeholders to identify best practices before implementing this change.

Freddie Mac (OTCQB: FMCC) has released its Monthly Volume Summary for July 2024. This report provides comprehensive information on the company's mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities, and other investments. As a key player in the housing market, Freddie Mac's mission is to promote liquidity, stability, affordability, and equity across all economic cycles.

Since its inception in 1970, Freddie Mac has assisted tens of millions of families in buying, renting, or maintaining their homes. The company continues to play a important role in making homeownership possible for families nationwide. For more detailed information, stakeholders can visit Freddie Mac's website or connect through various social media platforms.

Freddie Mac's Primary Mortgage Market Survey® (PMMS®) shows the 30-year fixed-rate mortgage (FRM) averaged 6.46%, down from 6.49% last week and 7.23% a year ago. The 15-year FRM averaged 5.62%, down from 5.66% last week and 6.55% a year ago. Chief Economist Sam Khater notes that softer economic data suggests rates will gently decline through year-end. Despite rates lingering under 6.5%, potential homebuyers remain unmotivated. Khater predicts rates may need to drop another percentage point to generate buyer demand. The PMMS® focuses on conventional, conforming home purchase loans for borrowers with 20% down and excellent credit.

Freddie Mac's Primary Mortgage Market Survey® reveals that 30-year fixed-rate mortgages (FRM) averaged 6.49% as of August 15, 2024, slightly up from 6.47% last week but significantly lower than the 7.09% rate a year ago. The 15-year FRM averaged 5.66%, up from 5.63% last week and down from 6.46% a year ago. Chief Economist Sam Khater notes that rates are over half a percent lower than last year, contrasting with the nearly 8% rates in 2023 that slowed the housing market. He predicts rates will likely trend downward in coming months as inflation slows, potentially benefiting both buyers and sellers.

Freddie Mac's Single-Family Credit Risk Transfer (CRT) Program has reached a significant milestone with its 100th ACIS® (Agency Credit Insurance Structure) transaction. Since 2013, the program has credit protected over $2.5 trillion in unpaid principal balance (UPB) of mortgage loans through $35 billion of ACIS coverage with (re)insurers. The latest transaction, ACIS 2024-SPH2, transfers risk on a pool of 20-year to 30-year fixed-rate mortgages with a total liability limit of $376 million.

In the first half of 2024, Freddie Mac's CRT issuance totaled nearly $3.2 billion, protecting over $99 billion UPB of mortgage loans. The company also executed tender offers and call options on previous transactions. As of June 30, 2024, approximately 62% of Freddie Mac's Single-Family mortgage portfolio was covered by credit enhancement. Since 2013, Freddie Mac has cumulatively transferred about $111 billion of credit risk on more than $3.5 trillion of single-family mortgages.