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Freddie Mac, known as FMCC in the stock market, is dedicated to making home ownership accessible and affordable for millions of families across the nation. Established in 1970 by Congress, Freddie Mac provides mortgage capital to lenders, ensuring a better housing finance system for homebuyers, renters, lenders, and taxpayers. They have partnered with various agencies to offer to purchase notes. Moreover, Freddie Mac's Single-Family Credit Risk Transfer programs channel credit risk away from taxpayers to private capital through securities and insurance policies. With a strong mission and commitment to the community, Freddie Mac plays a vital role in ensuring that individuals have access to safe and affordable housing.Freddie Mac (OTCQB: FMCC) has priced its new offering of approximately $934 million in Structured Pass-Through Certificates (K-F101 Certificates), which are set to settle around March 11, 2021. These certificates are backed by floating-rate multifamily mortgages indexed to the Secured Overnight Financing Rate (SOFR) with 10-year terms. The deal features one senior principal and interest class and one interest-only class entitled to static prepayment premiums. The K-F101 Certificates are part of Freddie Mac's strategy to mitigate taxpayer risk and enhance private investor participation.
Freddie Mac (FMCC) released its Monthly Volume Summary for January 2021, detailing performance in mortgage-related portfolios, securities issuance, and risk management. This report illustrates Freddie Mac's ongoing commitment to providing access to mortgage capital, enhancing affordability in housing since its establishment by Congress in 1970.
The summary includes significant data on delinquencies and debt activities, as well as insights into Freddie Mac's role in improving housing finance for families and individuals.
On February 25, 2021, Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.97%, increasing from 2.81% the previous week. Year-over-year, this rate reflects a decrease from 3.45%. The 15-year fixed-rate mortgage also rose to 2.34% from 2.21% last week, down from 2.95% a year ago. Additionally, the 5-year Treasury-indexed hybrid adjustable-rate mortgage averaged 2.99%. Freddie Mac's survey underscores how rising mortgage rates, combined with increasing home prices and low inventory, are affecting housing competitiveness.
Freddie Mac (OTCQB: FMCC) has announced the pricing of its new offering of Structured Pass-Through Certificates, known as K-741 Certificates, backed by fixed-rate multifamily mortgages with predominantly 7-year terms. The issuance is expected to total approximately $1 billion, with settlement anticipated on March 4, 2021. Key details include the participation of Wells Fargo and Amherst Pierpont as co-lead managers. The K-741 Certificates are part of Freddie Mac's strategy to mitigate risk to taxpayers by transferring it to private investors.
Freddie Mac (OTCQB: FMCC) has announced the pricing of its new offering of structured pass-through certificates, known as K-F100 Certificates, totaling approximately $952 million. This offering features floating rate bonds linked to the Secured Overnight Financing Rate (SOFR), expected to settle on March 4, 2021. The K-F100 Certificates are supported by multifamily mortgages with 7-year terms, and Freddie Mac emphasizes its leadership in multifamily credit risk transfer. This transaction aims to meet diverse investor needs and ensure a stable multifamily market.
Freddie Mac's Single-Family CRT program announced a record $4.8 billion of credit risk transfer in Q4 2020 on $167.2 billion of single-family mortgages, contributing to a total issuance of $16.9 billion for the year on over $475.8 billion of mortgages. Key transactions included STACR 2020-DNA5, the first linked to SOFR, and ACIS 2020-SAP1 with 15- to 20-year collateral. Since 2013, the program has cumulatively transferred $67.6 billion in credit risk across $1.9 trillion in mortgages, with 51% of the credit guarantee portfolio covered by enhancements.
Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates, estimated at approximately $1.2 billion in K-125 Certificates, scheduled to settle around February 26, 2021. These certificates are backed by fixed-rate multifamily mortgages with predominantly 10-year terms. Key details include Class A-1 with a notional amount of $116.150 million and a yield of 1.09223%, among others. Co-managers include Barclays and Credit Suisse, while the certificates are rated by Fitch Ratings and DBRS.
Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.81% for the week ending February 18, 2021, a rise from 2.73% the previous week. This rate is significantly lower than the 3.49% average a year ago. The 15-year fixed-rate mortgage also increased to 2.21%, while the 5-year Treasury-indexed hybrid adjustable-rate mortgage decreased slightly to 2.77%. Chief Economist Sam Khater attributed the rising rates to improved economic spending and supply chain shortages causing inflation. Despite fluctuations, rates are expected to remain low throughout the year.
On February 18, 2021, Freddie Mac (OTCQB: FMCC) announced the pricing of its Structured Pass-Through Certificates (K-J33 Certificates), backed by supplemental multifamily mortgages, totaling approximately $286 million. The issuance is expected to settle on or about February 26, 2021. The K-J33 certificates include various classes with respective details: A-1 class with a $92 million notional amount and a 0.4400% coupon, and A-2 class with a $194.153 million notional amount with a 1.5700% coupon. J.P. Morgan Securities and Morgan Stanley are co-lead managers.
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