Federal Home Stock Price, News & Analysis

Freddie Mac (OTCQB: FMCC) announced the pricing of approximately $550 million in Structured Pass-Through Certificates (K-I07 Certificates), set to settle around November 2, 2021. These K Certificates are supported by floating-rate multifamily mortgages with a 3-year term, aligned with the Secured Overnight Financing Rate (SOFR). The K-I07 includes one senior principal and interest class, backed by classes from the FREMF 2021-KI07 Mortgage Trust, and aims to transfer the risk of losses from taxpayers to private investors.

Freddie Mac (OTCQB: FMCC) released its Primary Mortgage Market Survey on October 21, 2021, indicating that the 30-year fixed-rate mortgage averaged 3.09%, up from 3.05% the previous week and 2.80% a year ago. The 15-year fixed-rate mortgage rose to 2.33%, consistent with last year, while the 5-year Treasury-indexed hybrid ARM decreased slightly to 2.54%. Chief Economist Sam Khater noted rising mortgage rates amid a challenging economic backdrop, with high prices driven by strong demand and limited supply. This suggests a robust housing market outlook as the year progresses.

Freddie Mac (OTCQB: FMCC) has announced the pricing of a new offering of Multifamily WI K-Deal Certificates, expected to total approximately $185 million. These certificates are backed by cash assets to purchase the A-M class of a forthcoming reference K-Deal. The certificates will be indirectly supported by fixed-rate multifamily mortgages with predominantly 10-year terms. The offering is set to settle on or about October 27, 2021. Wells Fargo Securities, LLC and J.P. Morgan Securities LLC serve as co-lead managers for the issuance.

Freddie Mac (OTCQB: FMCC) has announced the pricing of its new offering of approximately $767 million in K Certificates (K-F122 Certificates), expected to settle on or about October 28, 2021. These structured pass-through certificates, backed by SOFR-indexed floating-rate multifamily mortgages with 10-year terms, include a senior principal and interest class along with an interest-only class. The K Certificates are part of Freddie Mac's strategy to transfer risk from taxpayers to private investors and aim to provide stable cash flows.

Freddie Mac (FMCC) announced the auction sale of 7,186 non-performing residential first lien loans (NPLs) valued at approximately $1.2 billion. The sale is part of Freddie Mac's Standard Pool Offerings and is expected to settle in December 2021. Loans were marketed to diverse bidders from September 16, 2021. Approximately 64% of the loans had prior modifications but became delinquent. The transaction aims to reduce less-liquid assets and improve borrower outcomes. Notably, Freddie Mac has sold over $8 billion in NPLs to date.

On October 18, 2021, Freddie Mac (OTCQB: FMCC) announced the expansion of its low-income refinance programs, now including borrowers up to 100% of the area median income (AMI), an increase from the previous 80% AMI threshold. This initiative, part of the Refi Possible program launched in August, aims to help lower-income homeowners lower their mortgage rates and monthly payments by an estimated $100 to $250. Freddie Mac continues to focus on equitable homeownership opportunities, partnering with lenders and the Federal Housing Finance Agency to support sustainable housing.

Freddie Mac (OTCQB: FMCC) has priced a new offering of approximately $724 million in Structured Pass-Through Certificates, known as K-HG3 Certificates, backed by multifamily mortgage loans. The deal, part of Freddie Mac’s single-asset, single-borrower (SASB) execution, comprises 41 properties indirectly controlled by Harbor Group International. The K-HG3 is set to settle around October 21, 2021. The certificates will feature three senior principal and interest classes, with no ratings assigned, and will include a variety of investor options aimed at stabilizing cash flows.

Freddie Mac (OTCQB: FMCC) announced the pricing of its SB91 multifamily mortgage-backed securitization, which involves approximately $381 million in SB Certificates set to settle around October 22, 2021. This offering, backed by small balance loans, marks the tenth such transaction in 2021. The loans typically range from $1 million to $7.5 million and are associated with properties containing five or more units. Freddie Mac guarantees several classes of the issued securities and continues its commitment to providing liquidity to smaller apartment markets.

Freddie Mac (OTCQB: FMCC) has priced a new offering of Multifamily WI K-Deal Certificates (Series WI-K746), aimed at raising approximately $155 million. These certificates are initially backed by cash assets and will eventually be backed by a pool of fixed-rate multifamily mortgages with predominantly 7-year terms. The anticipated settlement date is on or about October 20, 2021. The offering is managed by Wells Fargo Securities and Cantor Fitzgerald, among others, and features a weighted average life of 7.26 years and a spread of S+17.