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.
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.