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.
On April 1, 2021, Freddie Mac (OTCQB: FMCC) reported that the average rate for a 30-year fixed-rate mortgage reached 3.18%, slightly up from the previous week's 3.17%. Though rates remain low, homebuyer demand has decreased significantly, now standing at just 8% above pre-COVID levels compared to 25% earlier in the year. This trend indicates a potential affordability squeeze attributed to rising mortgage rates and home prices. The 15-year fixed-rate mortgage remained stable at 2.45%, while the 5-year adjustable-rate mortgage averaged 2.84%.
Freddie Mac's new analysis reveals how expanded unemployment benefits and federal stimulus payments impacted unemployed renters during COVID-19. The report indicates that by August 2021, many renters received nearly 95% of their income replaced through these benefits. Key findings show that in over half of the states, benefits nearly matched pre-pandemic income, with 30-40% of benefits allocated for median-priced rentals. However, areas with higher median incomes faced greater rent burdens. Despite local market contractions, the national apartment market has remained resilient.
Freddie Mac (OTCQB: FMCC) has released a survey indicating improved confidence among renters and homeowners regarding their ability to pay housing costs amidst the pandemic. The survey reveals a decline in concern about payment ability from 71% in November 2020 to 63% for renters and 45% to 41% for homeowners by February 2021. Additionally, 72% of employed respondents are confident in maintaining their income. Freddie Mac has implemented various support initiatives, including forbearance programs and eviction suspensions affecting over 4.2 million units, showcasing their commitment to aiding families during this challenging economic period.
Freddie Mac (OTCQB: FMCC) announced the broad availability of automated payroll income verification to lenders, enhancing the mortgage application process. This new feature simplifies documentation, speeds up loan closures, and adheres to strong credit underwriting standards. By partnering with Finicity, income verification can now be completed swiftly through the Loan Product Advisor (LPA). The integration of additional third-party providers, including CoreLogic and LoanCraft, further enriches options for lenders, promoting a seamless digital mortgage experience and improved financial outcomes for all parties.
On March 18, 2021, Freddie Mac (OTCQB: FMCC) released its Primary Mortgage Market Survey, revealing that the average 30-year fixed-rate mortgage rose to 3.09%, up from 3.05% the previous week. This increase comes amid declining residential construction and low inventory challenges for homebuyers. The 15-year fixed-rate mortgage averaged 2.40%, while the 5-year ARM reached 2.79%. Despite the rising rates, demand remains as prospective buyers are still engaging in the market.
Freddie Mac (OTCQB: FMCC) has announced the pricing of a new offering of approximately $938 million in Structured Pass-Through Certificates (K-F103 Certificates). These certificates, backed by floating-rate multifamily mortgages tied to the Secured Overnight Financing Rate (SOFR), are expected to settle on March 25, 2021. The K-F103 Certificates feature a senior principal and interest class, with a weighted average life of 9.51 years, and a coupon set at the 30-day SOFR average + 24. The issuance aims to transfer some risks from taxpayers to private investors.
On March 17, 2021, Freddie Mac (FMCC) announced the pricing of approximately $1.4 billion in Structured Pass-Through Certificates (K-127 Certificates), backed by fixed-rate multifamily mortgages primarily with 10-year terms. The issuance is expected to settle on or around March 25, 2021. Key details include various classes of K Certificates, led by co-managers Wells Fargo Securities and Deutsche Bank Securities. Freddie Mac aims to transfer risk from taxpayers to private investors through K-Deals, which offer stable cash flows and structured credit enhancements.
The Freddie Mac Multifamily Apartment Investment Market Index (AIMI) rose by 0.5% in Q4 2020, following a growth of 1.9% in Q3 2020. This increase is attributed to falling mortgage rates despite challenges in net operating income (NOI) and property price growth due to the COVID-19 pandemic. Yearly, AIMI improved by 3.4% as mortgage rates decreased by 57 basis points. While most markets saw positive trends, significant contractions were evident in areas like New York and San Francisco, where NOI fell by 6.2% and 9.4% respectively.
Freddie Mac (OTCQB: FMCC) has appointed Mark B. Grier as its Interim Chief Executive Officer. Grier, a board member since February 2020 and a veteran in financial services, previously served as Vice Chairman at Prudential Financial until 2019. His extensive experience spans finance, risk, and capital management, making him well-suited for this role. The company is undergoing a search for a permanent CEO. Freddie Mac continues its mission to provide mortgage capital, enhancing housing accessibility for families and individuals across the nation.
Freddie Mac (OTCQB: FMCC) has announced the pricing for its SB84 offering, a multifamily mortgage-backed securitization involving approximately $362 million in SB Certificates, set to settle around March 19, 2021. The Small Balance Loans involved range from $1 million to $7.5 million and are generally tied to properties with five or more units. This marks the third SB Certificate transaction for Freddie Mac in 2021, showcasing its commitment to providing liquidity in smaller apartment markets.