STOCK TITAN

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) has announced the pricing of approximately $994 million in new Structured Pass-Through Certificates (K-F113 Certificates), backed by floating-rate multifamily mortgages indexed to the Secured Overnight Financing Rate (SOFR). The certificates are set to settle around June 11, 2021, and feature a weighted average life of 6.58 years. The pricing details include a discount margin of 30-day SOFR avg + 23, and the offering is led by Barclays Capital and BofA Securities. The K-F113 Certificates do not carry a rating and include various classes.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
-1.29%
Tags
none
-
News
Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey, indicating that the 30-year fixed-rate mortgage has fallen to an average of 2.95% for the week ending May 27, 2021, down from 3.00% the previous week. A year ago, it was at 3.15%. The 15-year fixed-rate mortgage now averages 2.27% and the 5-year ARM remains unchanged at 2.59%. Many homeowners are capitalizing on these rates, with nearly $2 trillion in conforming mortgages eligible to refinance, potentially saving over $2,800 annually.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
1.4%
Tags
none
-
Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has appointed Michael J. DeVito as its new CEO, effective June 1. DeVito brings over 30 years of experience in the mortgage industry, previously serving at Wells Fargo as Executive Vice President for Home Lending. The Board expressed confidence in DeVito's leadership and experience, highlighting his extensive background in loan origination, servicing, and risk management. Interim CEO Mark B. Grier will return to his role as a Board member.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
1.4%
Tags
none
Rhea-AI Summary

Freddie Mac (FMCC) released its Monthly Volume Summary for April 2021, detailing key metrics related to mortgage portfolios, securities issuance, and risk management. The report highlights Freddie Mac's role in facilitating home ownership by providing mortgage capital, contributing to housing affordability across the nation. The organization continues to enhance the housing finance system for various stakeholders, including borrowers and lenders.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
2.39%
Tags
none
-
Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) has appointed Jason Griest as Vice President of Multifamily Securitization. He will lead the structuring team, overseeing the Multifamily loan pipeline and credit risk transfer executions, including various deal types. Griest, a seasoned professional with over 20 years of experience, has been with Freddie Mac since 2013 and has contributed to innovative products such as SOFR bonds. Freddie Mac remains a leader in multifamily housing finance, ensuring affordable rental units for low-to-moderate income families.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
-3.24%
Tags
none
-
Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the pricing of its first Seasoned Loans Structured Transaction Trust (SLST) offering for 2021, totaling approximately $809 million. This securitization includes about $744 million in guaranteed senior certificates and $65 million in non-guaranteed subordinate certificates. It features 8,927 seasoned re-performing loans aimed at reducing credit and market risks. The settlement date is projected for May 27, 2021.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
-0.94%
Tags
none
Rhea-AI Summary

On May 20, 2021, Freddie Mac (OTCQB: FMCC) announced the pricing of approximately $751 million in new K Certificates, which are multifamily mortgage-backed securities. The structured offerings include 13 fixed-rate mortgages and 2 floating-rate mortgages supporting 15 properties. The K-LU3 Certificates are scheduled to settle on or about May 27, 2021. Co-lead managers for the issuance are J.P. Morgan Securities and Morgan Stanley.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
-0.94%
Tags
none
-
News
Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported the results of its Primary Mortgage Market Survey, revealing that the 30-year fixed-rate mortgage averaged 3.00% for the week ending May 20, 2021. This marked an increase from the previous week’s 2.94%. In comparison to last year, the rate dropped from 3.24%. Additionally, the 15-year fixed-rate mortgage rose to 2.29%, while the 5-year Treasury-indexed hybrid ARM remained unchanged at 2.59%. The continued low rates contrast with a tightening housing supply exacerbated by labor disruptions and high building costs.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
-0.94%
Tags
none
-
Rhea-AI Summary

Freddie Mac (FMCC) has announced the pricing of a new offering of Structured Pass-Through Certificates, specifically the K-F112 Certificates, totaling approximately $938 million. These certificates are backed by floating-rate multifamily mortgages with a 10-year term linked to the Secured Overnight Financing Rate (SOFR). The offering is set to settle around May 27, 2021. Co-lead managers include Wells Fargo Securities and Citigroup Global Markets, with details available in the preliminary offering circular supplement.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
-1.84%
Tags
none
Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced the pricing of its multifamily mortgage-backed securitization, SB86, worth approximately $372 million, expected to settle by May 21, 2021. This offering involves small balance loans ranging from $1 million to $7.5 million, aimed at properties with five or more units. The transaction marks the fifth SB Certificate for 2021, further enhancing liquidity in less populated markets. Freddie Mac continues its commitment to support the small balance loan market through its Optigo SBL initiative.

Rhea-AI Impact
Rhea-AI Sentiment
End-of-Day
3.37%
Tags
none

FAQ

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

The current stock price of Federal Home (FMCC) is $4.66 as of April 4, 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

FMCC Rankings

FMCC Stock Data

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