Freddie Mac reports recurring developments tied to U.S. housing finance, mortgage liquidity and its role as the Federal Home Loan Mortgage Corporation. Company news commonly covers the Primary Mortgage Market Survey® for conventional conforming mortgage rates, quarterly financial results, monthly volume summaries and activity across mortgage-related portfolios, securities issuance, delinquencies, debt activities and risk management.
Freddie Mac also reports capital markets activity connected to its Single-Family credit risk transfer programs. Updates include STACR® Structured Agency Credit Risk notes, ACIS® reinsurance transactions and tender offers for certain STACR securities, reflecting the company’s use of private capital markets to transfer residential mortgage credit risk.
Freddie Mac's Single-Family Credit Risk Transfer (CRT) program achieved a record issuance of nearly $20 billion in 2021, providing credit protection for $828.5 billion in single-family mortgages. In Q4 alone, CRT issuance reached $5.4 billion, safeguarding $242.9 billion in mortgages. Key highlights include the introduction of a 30-year standalone ACIS and a 20-year STACR transaction. Since 2013, the program has cumulatively transferred approximately $85.3 billion in credit risk on $2.7 trillion in mortgages, with 53% of the mortgage portfolio enhanced by credit risk measures.
Freddie Mac (OTCQB: FMCC) released its Monthly Volume Summary for January 2022, detailing mortgage-related portfolios, securities issuance, and risk management activities. Since 1970, Freddie Mac has aimed to enhance housing accessibility and affordability for millions of families. The company focuses on building a better housing finance system for homebuyers, renters, lenders, and taxpayers.
Freddie Mac (OTCQB: FMCC) reported in its latest Primary Mortgage Market Survey that the 30-year fixed-rate mortgage averaged 3.89% for the week ending February 24, 2022, down from 3.92% the previous week. The 15-year fixed-rate mortgage averaged 3.14%, and the 5-year ARM remained unchanged at 2.98%. Despite the decline in rates, they have risen over a full percent in the past six months. Rising inflation is impacting consumer sentiment as Freddie Mac anticipates firm home price growth.
Freddie Mac (OTCQB: FMCC) announced the release of its Primary Mortgage Market Survey on February 17, 2022, revealing a surge in mortgage rates. The 30-year fixed-rate mortgage averaged 3.92%, up from 3.69% last week and significantly higher than 2.81% a year ago. The 15-year fixed-rate mortgage rose to 3.15%, while the 5-year Treasury-indexed ARM averaged 2.98%. The increase is attributed to high inflation and unexpected consumer spending, creating challenges for homebuyers due to reduced affordability.
Summary not available.
Freddie Mac (OTCQB: FMCC) has introduced an innovative automated capability for mortgage lenders to assess homebuyer income using direct deposit data. This solution, available through the Loan Product Advisor (LPA), simplifies the loan process by reducing documentation requirements, thereby accelerating loan closures. With 93% of U.S. workers using direct deposit, this capability enhances efficiency, accuracy, and borrower experience. The system is designed to reduce underwriting errors and improve capacity for lenders. Initial service providers include Finicity and FormFree.
Freddie Mac (OTCQB: FMCC) appointed Heidi Mason as executive vice president and general counsel, effective March 7, 2022. Mason, with 25 years of experience in mortgage lending and securities law, takes over from Jerry Weiss, who has served as interim general counsel since March 2021. She previously worked at ElevateNext Law and Wells Fargo, where she was a senior deputy general counsel. CEO Michael DeVito praised Mason's expertise and anticipated her integral role in the executive team, while thanking Weiss for his service during a complex period.
Freddie Mac (OTCQB: FMCC) has updated the results for its tender offer to purchase STACR® Debt Notes, as detailed in the Offer to Purchase dated Feb. 1, 2022. By the Expiration Time on Feb. 7, 2022, approximately $2,144 million in original principal amount of Notes were validly tendered. However, not all expected Notes were delivered by the Guaranteed Delivery Deadline on Feb. 9, 2022. Detailed results indicate various acceptance percentages across different securities, highlighting the ongoing capital management strategies of Freddie Mac.
Freddie Mac (OTCQB: FMCC) has appointed Kevin G. Chavers and Luke S. Hayden to its Board of Directors, effective February 15, 2022. Chavers, a former managing director at BlackRock, brings extensive mortgage finance and capital markets expertise, while Hayden, CEO of Hayden Consulting, has vast experience in residential real estate finance. Chavers will serve on the Audit and Nominating committees, and Hayden will join the Operations and Technology Committee as well as the Risk Committee. Both are expected to add valuable insights to enhance Freddie Mac's operations.
Freddie Mac (OTCQB: FMCC) reports the 30-year fixed-rate mortgage averaged 3.69% for the week ending February 10, 2022, up from 3.55% the previous week and significantly higher than 2.73% a year ago. The 15-year fixed-rate mortgage increased to 2.93%, while the 5-year ARM rose to 2.80%. Chief Economist Sam Khater indicated that rising mortgage rates, driven by a strong labor market and high inflation, may adversely impact homebuyer demand. The PMMS® focuses on conventional loans for borrowers with excellent credit.