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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 (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.
Freddie Mac (OTCQB: FMCC) has announced the pricing of a new offering of Structured Pass-Through Certificates, specifically K-126 Certificates, with expected issuance of approximately $1.2 billion. These securities are backed by fixed-rate multifamily mortgages with primarily 10-year terms and are anticipated to settle around March 18, 2021. Key details include various classes of certificates with specific principal amounts, spreads, and yields, ensuring stable cash flows and structured credit enhancements. Co-lead managers include J.P. Morgan and Cantor Fitzgerald.
Freddie Mac (OTCQB: FMCC) reported an increase in mortgage rates for the week ending March 11, 2021. The 30-year fixed-rate mortgage averaged 3.05%, up from 3.02% last week, and 3.36% a year ago. The 15-year fixed-rate mortgage also rose to 2.38% from 2.34%, while the 5-year ARM increased to 2.77% from 2.73%. Chief Economist Sam Khater noted strong homebuyer demand despite the modest rise in rates, attributing it to economic improvements and ongoing vaccination efforts. Freddie Mac continues to support the housing market by providing mortgage capital.
Freddie Mac (OTCQB: FMCC) announced a new offering of approximately $939 million in K Certificates, specifically the K-F102 Certificates, backed by floating-rate multifamily mortgages. The offering includes a class of bonds indexed to the Secured Overnight Financing Rate (SOFR), with expected settlement around March 18, 2021. The K-F102 Certificates feature a 10-year term and are structured to provide stable cash flows for investors. Goldman Sachs & Co. and Wells Fargo Securities are the co-lead managers for the offering.