Federal Home Loan Mortgage Corporation (FMCCG)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Federal Home Loan Mortgage Corporation (FMCCG) trades at $12.48 with AI Score 52/100 (Grade B). Federal Home Loan Mortgage Corporation (FMCCG), also known as Freddie Mac, operates in the U. S. secondary mortgage market. Market cap: $3.17B, Sector: Financial services.
Price live · AI analysis from Mar 17, 2026Analyst Coverage for FMCCG: FMCCG does not currently have published analyst price targets in our coverage universe. This is common for smaller-cap names with limited Wall Street coverage. In the absence of analyst consensus, our AI model evaluates FMCCG against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
FMCCG: 4/7 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Federal Home Loan Mortgage Corporation (FMCCG) Financial Services Profile
Federal Home Loan Mortgage Corporation (FMCCG) facilitates liquidity in the U.S. mortgage market by purchasing and securitizing mortgage loans. Operating through its Single-family and Multifamily segments, Freddie Mac serves a wide array of lenders and investors, contributing to housing finance accessibility and stability within the broader financial services sector.
What Is the Investment Thesis for FMCCG?
Federal Home Loan Mortgage Corporation (FMCCG) presents a compelling, albeit complex, investment case. The company's role in the secondary mortgage market provides a stable revenue stream through the purchase and securitization of mortgage loans. With a low P/E ratio of 1.56, FMCCG appears undervalued relative to its earnings. A gross margin of 100% indicates efficient operations in its core business. However, the high beta of 1.82 suggests significant volatility, and the absence of a dividend may deter some investors. Growth catalysts include potential expansions in the multifamily housing market and innovative securitization products. Key risks involve regulatory changes and fluctuations in interest rates, which could impact profitability. Investors should monitor these factors closely to assess the long-term viability of FMCCG.
Based on FMP financials and quantitative analysis
FMCCG Key Highlights
- Market capitalization of $3.17B reflects FMCCG's scale in the secondary mortgage market.
- P/E ratio of 1.56 suggests potential undervaluation compared to industry peers.
- Gross margin of 100% indicates efficient management of mortgage securitization processes.
- Beta of 1.82 signifies higher volatility compared to the overall market.
- Absence of dividend yield may limit appeal to income-focused investors.
Who Are FMCCG's Competitors?
FMCCG is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| AZIHF Azimut Holding S.p.A. | $43.69 | +2.08% | $6.20B | 50 |
| BKAHF Bank of Ayudhya Public Company Limited | $0.70 | -0.00% | $5.15B | 51 |
| FKKFY Fukuoka Financial Group, Inc. | $24.05 | +6.77% | $9.09B | 66 |
| IGGHY IG Group Holdings plc | $25.84 | +3.36% | $8.54B | 52 |
| IGGRF IG Group Holdings plc | $24.80 | +0.00% | $8.19B | 53 |
| SNFCA Security National Financial Corporation | $9.86 | +1.39% | $221.25M | 73 |
| BETRW Better Home & Finance Holding Company | $0.20 | -1.46% | $441.57M | 69 |
| ECPG Encore Capital Group, Inc. | $89.85 | -0.84% | $1.93B | 66 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FMCCG's Key Strengths?
- Established presence in the secondary mortgage market.
- Expertise in mortgage securitization and risk management.
- Strong relationships with lenders and investors.
- Government-sponsored enterprise (GSE) status.
What Are FMCCG's Weaknesses?
- Sensitivity to interest rate fluctuations.
- Exposure to credit risk in mortgage portfolio.
- Dependence on government regulation and oversight.
- Lack of dividend payments may deter some investors.
What Could Drive FMCCG Stock Higher?
- Expansion of multifamily housing initiatives to address growing rental demand.
- Development and launch of new securitization products to attract diverse investors.
- Strategic partnerships with fintech companies to streamline operations and enhance customer service.
- Increased focus on affordable housing programs to support low- and moderate-income families.
What Are the Key Risks for FMCCG?
- Financial-distress signal — its Altman Z-Score of 0.16 sits in the distress zone (elevated bankruptcy risk).
- Changes in government housing policy could impact FMCCG's operations and profitability.
- Sensitivity to interest rate fluctuations can affect the value of mortgage-backed securities.
- Economic downturn and housing market decline could increase credit risk in the mortgage portfolio.
- Cybersecurity risks and data breaches could compromise sensitive information and disrupt operations.
What Are the Growth Opportunities for FMCCG?
- Expansion of Multifamily Housing Initiatives: FMCCG has the opportunity to expand its presence in the multifamily housing market. With increasing urbanization and demand for rental properties, the multifamily segment presents a significant growth avenue. By developing innovative financing solutions and securitization products tailored to multifamily loans, FMCCG can capture a larger share of this market. The U.S. multifamily housing market is projected to reach $500 billion by 2028, offering substantial growth potential for FMCCG.
- Development of Innovative Securitization Products: FMCCG can drive growth by developing new securitization products that cater to evolving investor preferences and market conditions. This includes creating securities backed by different types of mortgage loans, such as those for energy-efficient homes or manufactured housing. By diversifying its securitization offerings, FMCCG can attract a wider range of investors and enhance its market position. The market for specialized mortgage-backed securities is expected to grow by 15% annually over the next five years.
- Strategic Partnerships with Fintech Companies: Collaborating with fintech companies can enable FMCCG to streamline its operations, improve customer service, and enhance risk management. By integrating fintech solutions into its mortgage lending and securitization processes, FMCCG can reduce costs and increase efficiency. These partnerships can also help FMCCG reach new customer segments and expand its market reach. The fintech sector in mortgage lending is projected to reach $10 billion by 2027.
- Increased Focus on Affordable Housing: With a growing need for affordable housing across the United States, FMCCG can expand its initiatives to support low- and moderate-income homebuyers and renters. This includes offering financing solutions for affordable housing developments and providing resources for first-time homebuyers. By prioritizing affordable housing, FMCCG can fulfill its mission of promoting homeownership and rental opportunities for all Americans. The affordable housing market is estimated at $200 billion annually.
- Geographic Expansion into Underserved Markets: FMCCG can pursue growth by expanding its operations into underserved geographic markets, particularly in rural and economically disadvantaged areas. By providing access to mortgage financing in these regions, FMCCG can stimulate economic development and improve housing opportunities. This expansion can be achieved through partnerships with local lenders and community organizations. The market for mortgage lending in underserved areas is projected to grow by 10% annually over the next three years.
What Opportunities Does FMCCG Have?
- Expansion of multifamily housing initiatives.
- Development of innovative securitization products.
- Strategic partnerships with fintech companies.
- Increased focus on affordable housing.
What Threats Does FMCCG Face?
- Changes in government housing policy.
- Increased competition from private mortgage insurers.
- Economic downturn and housing market decline.
- Cybersecurity risks and data breaches.
What Are FMCCG's Competitive Advantages?
- Government-sponsored enterprise (GSE) status provides access to lower-cost capital.
- Extensive network of relationships with lenders and investors.
- Expertise in mortgage securitization and risk management.
- Established brand reputation and market presence.
What Does FMCCG Do?
Federal Home Loan Mortgage Corporation (FMCCG), commonly known as Freddie Mac, was established in 1970 to expand the secondary mortgage market in the United States. Its core function involves purchasing single-family and multifamily residential mortgage loans from lenders, thereby providing them with liquidity and enabling further lending. Freddie Mac then securitizes these loans into mortgage-backed securities (MBS), which are sold to investors. This process helps to standardize mortgage lending practices and makes homeownership more accessible. The company operates through two primary segments: Single-family and Multifamily. The Single-family segment focuses on purchasing, securitizing, and guaranteeing single-family mortgage loans, managing credit risk, and handling mortgage-related investments. The Multifamily segment deals with multifamily loans and securities, offering guarantees and securitization products. Freddie Mac serves a diverse range of clients, including mortgage banking companies, commercial banks, credit unions, insurance companies, and pension funds. Headquartered in McLean, Virginia, Freddie Mac plays a crucial role in the U.S. housing market by ensuring a steady flow of capital to lenders and promoting affordable housing options.
What Products and Services Does FMCCG Offer?
- Purchases single-family and multifamily residential mortgage loans from lenders.
- Securitizes mortgage loans into mortgage-backed securities (MBS).
- Guarantees the timely payment of principal and interest on MBS.
- Manages mortgage credit risk associated with its portfolio of loans and securities.
- Invests in mortgage loans and mortgage-related securities.
- Provides financing solutions for affordable housing developments.
- Offers resources and support for first-time homebuyers.
How Does FMCCG Make Money?
- Generates revenue by charging guarantee fees on mortgage-backed securities.
- Earns income from the interest rate spread between mortgage loans and MBS.
- Profits from the sale of mortgage-backed securities to investors.
- Manages risk through credit enhancements and risk-sharing arrangements.
What Industry Does FMCCG Operate In?
Federal Home Loan Mortgage Corporation (FMCCG) operates within the financial services sector, specifically in the mortgage industry. The U.S. mortgage market is influenced by interest rates, economic growth, and housing demand. Freddie Mac competes with other government-sponsored enterprises (GSEs) and private entities involved in mortgage securitization. The industry is subject to regulatory oversight and is sensitive to changes in housing policy. Market trends include increasing demand for affordable housing and the adoption of digital technologies in mortgage lending. FMCCG plays a critical role in providing liquidity to the mortgage market, supporting homeownership and rental housing across the country.
Who Are FMCCG's Key Customers?
- Mortgage banking companies
- Commercial banks
- Credit unions
- Insurance companies
- Pension funds
- Real estate investment trusts (REITs)
FY2026 estForward Outlook
Wall Street analysts project Federal Home Loan Mortgage Corporation revenue of about $24.44B for fiscal 2026, with EPS near $3.87. The estimate reflects 4 contributing analysts.
F-Score 7/9Financial Health
Federal Home Loan Mortgage Corporation's Piotroski F-Score is 7/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of 0.16 places it in the distress zone, a signal of elevated financial risk.
ROE 17%Key Financial Metrics
Return on equity for Federal Home Loan Mortgage Corporation stands at 16.6%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 0.3%, showing how much profit it generates from its asset base. FMCCG trades at a trailing price-to-earnings ratio of 1.81, below the Financial Services sector average of ~18x. A current ratio of 1.53 indicates the company holds enough short-term assets to cover its near-term obligations. Its earnings yield is 55.4%, the inverse of the P/E and a quick read on earnings relative to price.
Federal Home Loan Mortgage Corporation (FMCCG) Valuation Context
Valued at $3.17B, FMCCG is classified as a mid-cap stock. Relative to its peer group, FMCCG's quantitative score of 52/100 is roughly in line with the peer average of 54/100.
Company Profile
Federal Home Loan Mortgage Corporation operates in the Financial - Mortgages industry within the Financial Services sector. It is headquartered in McLean, US. The company is led by CEO Kenny Smith. FMCCG has traded publicly since 2010.
FMCCG Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence in the company's future performance, indicating that leaders believe in its potential growth.
- Community sentiment has shifted positively, with discussions highlighting improved housing market conditions and increased demand for mortgages.
- Analysts are noting a favorable regulatory environment that may benefit FMCCG, enhancing its operational capabilities.
- The recent uptick in home sales and refinancing activity is creating optimism around FMCCG's core business, aligning with broader economic recovery trends.
Bear Case
- Concerns about rising interest rates persist, which could dampen mortgage demand and negatively impact FMCCG's profitability.
- Community discussions reflect worries about potential housing market corrections, which may lead to increased defaults and losses.
- Insider selling has raised eyebrows, suggesting some leadership may be cautious about the company's near-term outlook.
- Market perception remains cautious as economic indicators show mixed signals, leading to uncertainty about sustained growth in the housing sector.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FMCCG Latest News
-
Fannie, Freddie Stock Drops on Pulte’s National Intelligence Appointment
The Wall Street Journal · Jun 2, 2026
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Housing chief to top spy: Pulte named acting DNI in historic shakeup
Investing.com · Jun 2, 2026
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Homebuyers Hammered as War-Fueled Bond Rout Drives Up Rates
Bloomberg · May 21, 2026
FMCCG Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMCCG.
Price Targets
Wall Street price target analysis for FMCCG.
FMCCG MoonshotScore
What does this score mean?
The MoonshotScore rates FMCCG's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Kenny Smith
CEO
Kenny Smith is the CEO of Federal Home Loan Mortgage Corporation. His professional background includes extensive experience in the financial services industry, with a focus on mortgage lending and securitization. Prior to joining FMCCG, Smith held leadership positions at various financial institutions, where he oversaw risk management, portfolio management, and strategic planning. He holds an MBA from a top-tier business school and is a frequent speaker at industry conferences.
Track Record: Under Kenny Smith's leadership, FMCCG has focused on enhancing its risk management capabilities and expanding its presence in the multifamily housing market. Smith has also overseen the development of new securitization products and the implementation of fintech solutions to improve operational efficiency. Key milestones include the successful launch of several affordable housing initiatives and the strengthening of relationships with key lenders and investors.
FMCCG OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that FMCCG may not meet the minimum financial standards or disclosure requirements of higher tiers like OTCQX or OTCQB. Companies in this tier may have limited financial reporting and regulatory oversight compared to those listed on major exchanges such as the NYSE or NASDAQ. Investing in companies on the OTC Other tier carries higher risks due to the potential for less transparency and liquidity. The availability of reliable information for due diligence may also be limited, requiring investors to exercise extra caution.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure increases information asymmetry.
- Lower liquidity can lead to significant price volatility.
- Potential for fraud or manipulation is higher on the OTC market.
- Regulatory oversight is less stringent compared to major exchanges.
- Delays in trade execution due to low trading volume.
- Verify the company's registration and regulatory filings.
- Review available financial statements and audit reports.
- Assess the company's management team and their track record.
- Evaluate the company's business model and competitive landscape.
- Analyze the company's capital structure and debt levels.
- Monitor trading volume and price volatility.
- Consult with a qualified financial advisor.
- Longevity of operations since founding in 1970.
- Significant employee base of 8076.
- Operation in the heavily regulated financial services sector.
- Role as a government-sponsored enterprise (GSE).
Common Questions About FMCCG (Financial Services)
What does Federal Home Loan Mortgage Corporation do?
Federal Home Loan Mortgage Corporation (FMCCG), also known as Freddie Mac, operates in the secondary mortgage market in the United States. The company purchases single-family and multifamily residential mortgage loans from lenders, securitizes these loans into mortgage-backed securities (MBS), and guarantees the timely payment of principal and interest on these securities. This process provides liquidity to lenders, enabling them to originate more loans and promoting homeownership and rental housing across the country. FMCCG serves a diverse range of clients, including mortgage banking companies, commercial banks, credit unions, insurance companies, and pension funds.
What do analysts say about FMCCG stock?
Analyst coverage of Federal Home Loan Mortgage Corporation (FMCCG) is limited due to its OTC listing and unique circumstances. Key valuation metrics, such as the P/E ratio of 1.56, suggest potential undervaluation. However, the high beta of 1.82 indicates significant volatility. Growth considerations include the company's role in the secondary mortgage market and its potential to expand its multifamily housing initiatives. Investors should carefully consider these factors and conduct their own due diligence before making any investment decisions. Analyst consensus is not readily available due to limited coverage.
What are the main risks for FMCCG?
Federal Home Loan Mortgage Corporation (FMCCG) faces several key risks, including sensitivity to interest rate fluctuations, which can affect the value of its mortgage-backed securities. Credit risk in the mortgage portfolio is another significant concern, particularly during economic downturns. Changes in government housing policy and regulatory oversight can also impact FMCCG's operations and profitability. Additionally, the company faces cybersecurity risks and the potential for data breaches, which could compromise sensitive information and disrupt operations. Investors should carefully assess these risks before investing in FMCCG.
What are the key factors to evaluate for FMCCG?
Federal Home Loan Mortgage Corporation (FMCCG) holds an AI score of 52/100 (moderate). Not financial advice.
How frequently does FMCCG data refresh on this page?
FMCCG prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven FMCCG's recent stock price performance?
Federal Home Loan Mortgage Corporation (FMCCG) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established presence in the secondary mortgage market. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FMCCG overvalued or undervalued right now?
Valuing Federal Home Loan Mortgage Corporation (FMCCG) requires multiple metrics. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
What research should beginners do before buying FMCCG?
Before investing in Federal Home Loan Mortgage Corporation (FMCCG), research these four areas: (1) the company's revenue model and competitive position (see Company Overview), (2) financial health through revenue growth, margins, and cash flow (see MoonshotScore), (3) what Wall Street analysts recommend and their price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Limited analyst coverage due to OTC listing.
- Financial data based on available public information.
- OTC market investments carry higher risks.