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.
Freddie Mac (OTCQB: FMCC), formally the Federal Home Loan Mortgage Corporation, regularly issues news and updates that reflect its role in U.S. housing finance. The company describes its mission as making home possible for families across the nation by promoting liquidity, stability and affordability in the housing market throughout all economic cycles. Since 1970, it reports having helped tens of millions of families buy, rent or keep their home.
News about Freddie Mac often covers mortgage rate trends through its Primary Mortgage Market Survey® (PMMS®). These releases provide average rates for products such as the 30-year and 15-year fixed-rate mortgage, focused on conventional, conforming, fully amortizing home purchase loans for borrowers who put 20% down and have excellent credit. Such updates can give readers insight into movements in mortgage costs and the company’s commentary on housing demand.
Another key news theme is Freddie Mac’s activity in credit risk transfer and securities issuance. The company publishes updates on its Single-Family Credit Risk Transfer (CRT) programs, including STACR® and ACIS® transactions, and on multifamily securities such as K-Deals®, Multi PCs®, SB-Deals®, M-Deals, ML-Deals, Q-Deals, MSCR notes and MCIP policies. These announcements describe how Freddie Mac transfers credit, interest-rate and liquidity risk away from U.S. taxpayers to private investors and (re)insurers.
Freddie Mac also releases information on its Monthly Volume Summary, tender offers for STACR notes, and exchange offers for Gold PCs and Giant PCs. Governance and leadership developments, such as changes in executive roles or board membership, are disclosed through press releases and related SEC filings. Investors and observers can use this news feed to follow Freddie Mac’s mortgage market surveys, securities issuance, risk transfer activity and corporate updates in one place.
Freddie Mac (OTCQB: FMCC) published its Monthly Volume Summary for September 2022, detailing its mortgage-related portfolios, securities issuance, risk management, delinquencies, and debt activities. Since its establishment by Congress in 1970, Freddie Mac has played a crucial role in making housing accessible and affordable for millions of families. The report highlights the company's ongoing efforts to build a better housing finance system for homebuyers, renters, lenders, and taxpayers.
Freddie Mac (FMCC) announced the pricing of its second Seasoned Loans Structured Transaction Trust (SLST) offering for 2022, totaling approximately $230 million, which includes $201 million in guaranteed senior certificates and $29 million in non-guaranteed subordinate certificates. This securitization aims to manage credit and market risk by reducing less-liquid assets in its portfolio. The transaction is set to settle on October 31, 2022, backed by 1,326 seasoned loans, none of which are over 150 days delinquent.
Freddie Mac Multifamily awarded BH Management Services as its 2022 Impact Sponsor of the Year for outstanding contributions to affordable housing and tenant advocacy. This recognition highlights BH's commitment to sustainability, diversity, and community development. Managing approximately 100,000 units and owning 50,000, BH utilizes Freddie Mac’s initiatives for reporting on-time rent payments, enhancing residents' financial stability. The award emphasizes a dual mission of profitability and social impact, setting a commendable industry standard.
Freddie Mac (OTCQB: FMCC) has enhanced its Condo Project Advisor tool to streamline the loan origination process for condominium projects. The updated functionality allows lenders to request an automated Project Assessment Request (PAR) to determine project eligibility quickly. This enhancement aims to improve efficiency in financing condominiums, which are essential for affordable housing. By providing actionable insights on project compliance, lenders can focus their reviews and potentially lower risks associated with condominium unit mortgages. This feature is available to authorized lenders starting October 24, 2022.
Freddie Mac (OTCQB: FMCC) recently released its Quarterly Forecast indicating a downturn in the housing market due to rising mortgage rates and decreased demand. The 30-year fixed-rate mortgage is predicted to average 5.4% in 2022 and 6.4% in 2023, up from 3.0% in 2021. Home price growth is expected to slow significantly, from 6.7% in 2022 to -0.2% in 2023. Home sales are also forecasted to drop from 5.8 million in 2022 to 5.1 million in 2023, reflecting a decline in mortgage origination levels, projected at $1.9 trillion in 2023, down from $4.8 trillion in 2021.
On October 20, 2022, Freddie Mac (OTCQB: FMCC) reported a slight increase in 30-year fixed mortgage rates, averaging 6.94%. This marks a rise from last week's 6.92% and significantly up from 3.09% a year ago. The report indicates declining housing market demand and diminished homebuilder confidence, which has dropped to 50% of its peak six months prior. The 15-year fixed mortgage also rose to 6.23%, while the 5-year ARM fell slightly to 5.71%. Upcoming changes to the PMMS will enhance data collection, effective November 2022.
Freddie Mac (OTCQB: FMCC) announced an innovative lending capability that enhances homeownership opportunities by integrating borrowers' bank account data into its Loan Product Advisor (LPA), effective November 6, 2022. This industry-first approach evaluates positive monthly cash flow to better assess a borrower's payment ability, making it easier for first-time and underserved borrowers to qualify for loans. Lenders can submit data from various accounts, ensuring that it only enhances the credit risk assessment. Supported by third-party service providers, this initiative aims to modernize the mortgage process and improve borrower experiences.
On October 13, 2022, Freddie Mac (OTCQB: FMCC) announced the final tender results of its offer to purchase all STACR (Structured Agency Credit Risk) Notes. As of 5:00 p.m. on October 12, approximately $944 million in Notes were validly tendered. The settlement date for these transactions was also October 12, 2022. This offer was executed in line with the conditions set in the Offer to Purchase, dated October 3, 2022. BofA Securities, Inc. and Barclays Capital Inc. acted as lead dealer managers for the offer, which is part of Freddie Mac's ongoing efforts to manage credit risk in the housing market.
On October 13, 2022, Freddie Mac (OTCQB: FMCC) reported an increase in the average rates for 30-year fixed-rate mortgages, hitting 6.92%, the highest since April 2002. The 15-year fixed-rate mortgage also rose to 6.09%, while the 5-year ARM increased to 5.81%. Strong job growth contrasts with inflation and housing affordability concerns, significantly impacting housing demand. Freddie Mac plans to enhance its Primary Mortgage Market Survey (PMMS) starting November 2022, shifting data collection methods to improve accuracy.
Freddie Mac (OTCQB: FMCC) announced the results of its tender offer to purchase STACR® Notes, with approximately $944 million in principal amount validly tendered by the expiration deadline of October 7, 2022. The settlement date for accepted notes is expected on October 12, 2022, with additional purchases on October 13, 2022. The offer was conducted under the terms of the Offer Documents dated October 3, 2022, and involved various STACR trusts. The company is managing the offer through dealer managers BofA Securities and Barclays Capital.
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