Federal Home Stock Price, News & Analysis

Freddie Mac (OTCQB: FMCC) reported a significant increase in mortgage origination volumes as homeowners capitalized on low mortgage rates. Despite economic challenges due to the coronavirus pandemic, the housing market remains strong, with solid refinance activity and continued homebuyer demand. Key forecasts for 2020 include a 3.2% average rate for 30-year fixed mortgages, a 5.5% increase in house prices, and total mortgage origination levels expected to reach $3.582 trillion. For 2021, a slight decrease in home sales and refinance originations is anticipated.

Freddie Mac (OTCQB:FMCC) announced its intent to issue new three-year USD Reference Notes security, CUSIP number 3137EAEY1, maturing on October 16, 2023. The settlement will occur on October 16, 2020, at benchmark size. This offering will be executed through a syndicate of dealers led by J.P. Morgan Securities, TD Securities, and Wells Fargo Securities, among others. This announcement does not constitute an offer to sell securities; relevant offering details can be found in Freddie Mac's regulatory filings.

Freddie Mac (OTCQB: FMCC) has priced a new offering of approximately $535 million in Structured Pass-Through Certificates (K-SG1 Certificates), with expected settlement around October 16, 2020. This offering is part of Freddie Mac's strategy to support affordable housing through their Sustainability Bonds. The proceeds will finance multifamily properties aimed at enhancing economic opportunities for low-to-moderate income families.

Freddie Mac (FMCC) has reminded mortgage servicers of its disaster relief policies as Hurricane Delta approaches the Gulf Coast. The company offers immediate relief options for homeowners in federally declared disaster areas, including short-term forbearance without late fees for up to 12 months. Homeowners have several options to address missed payments, such as reinstatement, repayment plans, payment deferrals, and loan modifications. Freddie Mac also extends relief options to homeowners outside declared areas with disaster-related losses impacting their mortgage payments.

Freddie Mac (OTCQB: FMCC) reported that the 30-year fixed-rate mortgage averaged 2.87% for the week ending October 8, 2020, slightly down from 2.88% the previous week and down from 3.57% a year prior. The 15-year FRM averaged 2.37%, up from 2.36%, while the 5-year ARM averaged 2.89%, down from 2.90%. Despite a flattening trend in rates, buyer demand remains strong, especially among first-time buyers in affordable regions like the Midwest, where home prices are accelerating considerably.

Freddie Mac (OTCQB: FMCC) has announced the pricing of its new Structured Pass-Through Certificates, K-F87, totaling approximately $973 million. These K Certificates, set to settle around October 16, 2020, are supported by floating-rate multifamily mortgages with 10-year terms. The offering includes senior bonds indexed to both LIBOR and SOFR, with Freddie Mac providing a guarantee on the SOFR-indexed bonds. The K-F87 transaction aims to transfer risk away from taxpayers to private investors, enhancing investment options with stable cash flows.

Freddie Mac (OTCQB: FMCC) announced the auction sale of 2,806 non-performing loans (NPLs) totaling approximately $464 million. The sale is part of its Standard Pool Offerings and is expected to close in December 2020. Potential bidders, including non-profits and minority-owned businesses, were targeted in the marketing process starting September 8, 2020. The pools sold include loans with significant delinquency rates, where over half had previous modifications and are under loss mitigation. The company aims to reduce less-liquid assets from its investments portfolio.

Freddie Mac (OTCQB: FMCC) has priced a new offering of Structured Pass-Through Certificates, known as K Certificates, valued at approximately $1.1 billion. The K-117 Certificates will back fixed-rate multifamily mortgages, primarily with 10-year terms, and are set to settle around October 13, 2020. The offering includes multiple classes, with principal amounts ranging from $95.365 million to $1,047.422 million. Co-lead managers for the offering include Morgan Stanley and Wells Fargo. This initiative aligns with Freddie Mac's strategy to mitigate taxpayer risk while providing stable investment opportunities.

Freddie Mac (OTCQB: FMCC) has announced the pricing of approximately $986 million in Structured Pass-Through Certificates, known as K-F86 Certificates, set to settle around October 13, 2020. These certificates include classes of senior bonds indexed to both LIBOR and SOFR, backed by floating-rate multifamily mortgages. The offering aims to provide investors with stable cash flows while transferring some risk from taxpayers to private investors. The K Certificates do not carry a rating but will feature a basis risk guarantee from Freddie Mac.