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.
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Freddie Mac (OTCQB: FMCC) announced results from its Primary Mortgage Market Survey (PMMS) for the week ending June 17, 2021. The 30-year fixed-rate mortgage averaged 2.93%, down from 2.96% the previous week and 3.13% a year ago. The 15-year fixed-rate mortgage slightly rose to 2.24%, while the 5-year adjustable-rate mortgage dropped to 2.52%. Chief Economist Sam Khater noted that while mortgage rates are low, weakened demand is primarily due to high home prices, suggesting ongoing affordability challenges.
Freddie Mac (OTCQB: FMCC) has announced the pricing of its new offering of Structured Pass-Through Certificates, totaling approximately $886 million. These K-F114 Certificates are backed by floating-rate multifamily mortgages with 10-year terms indexed to the Secured Overnight Financing Rate (SOFR). The offering is set to settle around June 24, 2021. The K-F114 will include a class of floating-rate bonds and will not be rated. Major financial institutions, including Goldman Sachs and Barclays, have been appointed as co-lead managers.
Freddie Mac (OTCQB: FMCC) has priced its SB87 offering, a multifamily mortgage-backed securitization totaling approximately $385 million. The SB87 Certificates are expected to settle around June 17, 2021. This marks the sixth SB Certificate transaction in 2021, supporting the company's initiative to enhance liquidity in smaller apartment properties. Freddie Mac will guarantee senior securities issued by the FRESB 2021-SB87 Mortgage Trust and continue as the mortgage loan seller and master servicer.
Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates (K-129), backed by fixed-rate multifamily mortgages with 10-year terms. The offering aims to issue approximately $1 billion in K Certificates, expected to settle around June 17, 2021. Co-lead managers include Morgan Stanley & Co. LLC and Credit Suisse Securities (USA) LLC. The K-129 Certificates are part of a strategy to transfer risk from taxpayers to private investors. The announcement does not constitute an offer to sell any securities, as all offers are made through applicable offering circulars.
Freddie Mac (OTCQB: FMCC) announced the results of its Primary Mortgage Market Survey on June 10, 2021, revealing that the 30-year fixed-rate mortgage averaged 2.96%, down from 2.99% the previous week and 3.21% a year ago. The 15-year fixed-rate mortgage averaged 2.23%, while the 5-year ARM averaged 2.55%. Chief Economist Sam Khater noted a slowdown in purchase applications due to modestly higher mortgage rates, but emphasized that home prices remain elevated due to inventory shortages. This indicates a complex housing market amid economic recovery.
Freddie Mac (OTCQB: FMCC) announced the pricing of its second Seasoned Credit Risk Transfer Trust (SCRT) offering for 2021, totaling approximately $1.0 billion. This securitization includes $936 million in guaranteed senior certificates and $65 million in unguaranteed subordinate securities backed by seasoned re-performing loans (RPLs). The loans have been performing well, with only 0.38% on a forbearance plan. The transaction is set to settle on June 15, 2021. Freddie Mac has previously securitized over $72 billion in RPLs, bolstering its portfolio while reducing risk.
The Freddie Mac Multfamily Apartment Investment Market Index (AIMI) remained stable in Q1 2021, despite a 0.1% decline after two quarters of growth. Positive net operating incomes (NOIs) and low mortgage rates supported the multifamily investment environment. Quarterly, 13 markets grew while 11 contracted. Tampa and Phoenix recorded strong NOI growth of 3.1% and 2.7%. Yearly, the AIMI rose in 15 markets, but New York and San Francisco faced significant NOIs drop of 16.5% and 21.7%. Overall, property prices increased in 22 out of 25 markets, yet mortgage rates decreased by 42 bps.
Freddie Mac (FMCC) has issued $230 million in Social Bonds aimed at supporting 1,267 rental homes across 39 states and the District of Columbia for individuals with intellectual and developmental disabilities. This transaction addresses the pressing need for community-based housing, providing approximately 90% of the units to individuals earning 50% of the area median income. The issuance is backed by a pool of Multifamily PCs and aligns with the company's commitment to social impact, fostering affordable housing and socioeconomic opportunities for underserved communities.
Freddie Mac (OTCQB: FMCC) has extended the deadline for requesting new COVID-19 forbearance agreements for its Multifamily loans to September 30, 2021, from the previous June 30, 2021. This extension aims to support multifamily operators facing hardships due to the pandemic and includes tenant protections, such as a moratorium on evictions for non-payment of rent. As of the latest report, 1,154 loans are in forbearance, accounting for approximately 2.1% of total securitized unpaid principal balance, with more than 82% of borrowers resuming payments post-forbearance.