Federal Home Stock Price, News & Analysis

Freddie Mac (OTCQB: FMCC) has announced the pricing of its second Seasoned Credit Risk Transfer Trust (SCRT) offering of 2024, a $658 million securitization backed by seasoned re-performing loans (RPLs). The offering includes $625 million in guaranteed senior certificates and $33 million in non-guaranteed mezzanine and subordinate certificates. The transaction, expected to settle on September 13, 2024, involves 3,762 seasoned fixed-, step-, and adjustable-rate RPLs.

This SCRT program is part of Freddie Mac's strategy to reduce less liquid assets and transfer credit and market risk. To date, Freddie Mac has sold over $10.3 billion of Non-Performing Loans and securitized approximately $78.6 billion of RPLs. The underlying loans will be serviced by Newrez , prioritizing borrower retention options and promoting neighborhood stability in case of default.

Freddie Mac (OTCQB: FMCC) has appointed Diana Reid as its new CEO, effective immediately. Reid, a veteran with over 40 years of experience in banking, real estate, capital markets, and affordable housing, will also join the company's Board of Directors. She replaces Interim CEO Michael Hutchins, who will continue as president. Reid's extensive background includes nearly 12 years leading PNC Financial Services Group's real estate business division and founding Beekman Advisors. The appointment comes after a comprehensive search by Freddie Mac's Board, with Board Chair Lance Drummond expressing confidence in Reid's ability to further the company's mission-driven work in housing finance.

Freddie Mac (OTCQB: FMCC) has announced the results of its tender offer for certain STACR® (Structured Agency Credit Risk) Notes. As of September 5, 2024, approximately $1.3 billion aggregate original principal amount of Notes had been validly tendered and not properly withdrawn. The offer was conducted in accordance with the conditions set forth in the Offer to Purchase dated August 29, 2024.

The settlement date for the accepted Notes is expected to be September 9, 2024. Any Notes tendered using the Notice of Guaranteed Delivery are expected to be purchased on September 11, 2024. Citigroup Global Markets Inc. and BofA Securities, Inc. are lead dealer managers, while Academy Securities, Inc. is co-dealer manager for the offer.

Freddie Mac's Primary Mortgage Market Survey® (PMMS®) shows mortgage rates remained flat this week, with the 30-year fixed-rate mortgage (FRM) averaging 6.35%, unchanged from last week. The 15-year FRM averaged 5.47%, down from 5.51% last week. Compared to a year ago, both rates are significantly lower, with the 30-year FRM down from 7.12% and the 15-year FRM down from 6.52%.

Sam Khater, Freddie Mac's Chief Economist, noted that markets are awaiting the August jobs report. Despite lower rates, home sales have been lackluster. However, homeowners who bought in recent years are taking advantage of declining rates to lower their monthly payments through refinancing.

Freddie Mac (OTCQB: FMCC) has announced a $233 million non-performing loan (NPL) sale via auction. The offering includes a Standard Pool Offering (SPO) and two Extended Timeline Pool Offerings (EXPO) targeting smaller investors, including non-profits and Minority, Women, Disabled, LGBTQ+, Veteran or Service-Disabled Veteran-Owned Businesses (MWDOBs). Bids are due by September 26, 2024 for the SPO pool and October 10, 2024 for the EXPO pools.

The NPLs consist of seasoned, deeply delinquent residential first lien whole loans from Freddie Mac's mortgage-related investments portfolio. This sale is part of Freddie Mac's strategy to reduce less-liquid assets in an economically sensible way. Since 2011, Freddie Mac has sold $10.3 billion of NPLs and securitized approximately $78.6 billion of re-performing loans (RPLs).

Freddie Mac's Primary Mortgage Market Survey® reveals a decline in mortgage rates, with the 30-year fixed-rate mortgage (FRM) averaging 6.35%, down from 6.46% last week and 7.18% a year ago. The 15-year FRM also dropped to 5.51% from 5.62% last week and 6.55% a year ago. Chief Economist Sam Khater attributes this decrease to expectations of a Fed rate cut.

Khater predicts rates will continue to fall but notes that a rebound in purchase activity remains elusive until further declines occur. The survey focuses on conventional, conforming home purchase loans for borrowers with 20% down payment and excellent credit. Freddie Mac aims to promote liquidity, stability, affordability, and equity in the housing market throughout economic cycles.

Freddie Mac (OTCQB: FMCC) has announced a fixed-price cash tender offer for the purchase of any and all of certain STACR® (Structured Agency Credit Risk) Notes. The offer begins on August 29, 2024, and expires at 5 p.m. New York City time on September 5, 2024, unless extended. Freddie Mac has engaged Citigroup Global Markets Inc. and BofA Securities, Inc. as lead dealer managers and Academy Securities, Inc. as co-dealer manager for the offer.

The tender offer includes various STACR Notes with original principal amounts ranging from $20 million to $447 million. The Tender Offer Consideration per $1,000 original principal amount varies from $1,001.50 to $1,160.00, depending on the specific Note. Holders who tender their Notes will receive accrued and unpaid interest. The expected Settlement Date is September 9, 2024.

Freddie Mac Multifamily has released a policy framework for minimum lease standards at multifamily properties with new enterprise-backed loans. The standards, announced by the FHFA in July, include a 5-day grace period for rent payments, a 30-day notice for rent increases, and a 30-day notice of lease expiration. These requirements will apply to new loans under application starting February 2025.

The policy framework, published jointly with Fannie Mae, outlines implementation, monitoring, and enforcement provisions. Freddie Mac's head of Multifamily, Kevin Palmer, stated that these standards aim to extend common baseline tenant protections. The company conducted research and engaged with stakeholders to identify best practices before implementing this change.

Freddie Mac (OTCQB: FMCC) has released its Monthly Volume Summary for July 2024. This report provides comprehensive information on the company's mortgage-related portfolios, securities issuance, risk management, delinquencies, debt activities, and other investments. As a key player in the housing market, Freddie Mac's mission is to promote liquidity, stability, affordability, and equity across all economic cycles.

Since its inception in 1970, Freddie Mac has assisted tens of millions of families in buying, renting, or maintaining their homes. The company continues to play a important role in making homeownership possible for families nationwide. For more detailed information, stakeholders can visit Freddie Mac's website or connect through various social media platforms.