Federal Home Loan Mortgage Corporation (FMCCL)
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 (FMCCL) trades at $13.00. Federal Home Loan Mortgage Corporation (FMCCL) operates in the U. S. secondary mortgage market, purchasing and securitizing single-family and multifamily residential mortgage loans. Market cap: $3.43B, Sector: Financial services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for FMCCL: FMCCL 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 FMCCL against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FMCCL: 1/1 perspectives are bearish.
How is this calculated? →Federal Home Loan Mortgage Corporation (FMCCL) Financial Services Profile
Federal Home Loan Mortgage Corporation (FMCCL) facilitates liquidity in the U.S. mortgage market by purchasing and securitizing mortgage loans. Operating through Single-family and Multifamily segments, FMCCL serves a diverse range of financial institutions, contributing to stability in the housing finance system with a market capitalization of $3.43B.
What Is the Investment Thesis for FMCCL?
Federal Home Loan Mortgage Corporation (FMCCL), with a market capitalization of $3.43B and a P/E ratio of 1.59, presents a unique investment case within the financial services sector. The company's role in the secondary mortgage market provides a stable revenue stream through the securitization of mortgage loans. A key value driver is the continued demand for housing and mortgage financing, supporting the volume of loans FMCCL purchases and securitizes. Growth catalysts include potential expansions in the multifamily segment and innovative securitization products. However, investors may want to evaluate the potential impact of interest rate fluctuations and regulatory changes on FMCCL's profitability and operations. The company's high beta of 1.82 indicates significant volatility relative to the market.
Based on FMP financials and quantitative analysis
FMCCL Key Highlights
- Market capitalization of $3.43B, reflecting its significant presence in the secondary mortgage market.
- P/E ratio of 1.59, suggesting a potentially undervalued stock relative to its earnings.
- Gross margin of 100.0%, indicating efficient management of loan purchasing and securitization costs.
- Profit margin of 8.1%, demonstrating profitability in its core operations.
- Beta of 1.82, indicating higher volatility compared to the overall market, influenced by interest rate sensitivity.
Who Are FMCCL's Competitors?
FMCCL is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| HCXLF Hiscox Ltd | $24.93 | +3.81% | $7.98B | 62 |
| HCXLY Hiscox Ltd | $52.13 | +3.24% | $8.36B | 47 |
| IGGHY IG Group Holdings plc | $25.84 | +3.36% | $8.54B | 52 |
| IGGRF IG Group Holdings plc | $24.80 | +0.00% | $8.19B | 53 |
| IVTJF Investec Group | $7.95 | +0.00% | $6.76B | 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 FMCCL's Key Strengths?
- Established presence in the secondary mortgage market.
- Expertise in mortgage securitization and risk management.
- Strong relationships with lenders and investors.
- High gross margin of 100.0%.
What Are FMCCL's Weaknesses?
- Sensitivity to interest rate fluctuations.
- Exposure to mortgage credit risk.
- Dependence on government regulations.
- High beta of 1.82 indicates significant volatility.
What Could Drive FMCCL Stock Higher?
- Continued demand for housing and mortgage financing supports the volume of loans FMCCL purchases and securitizes.
- Expansion in the multifamily segment driven by increasing demand for rental housing.
- Potential regulatory changes that could benefit FMCCL's operations and market position.
- Investments in technology and automation to improve efficiency and reduce operational costs.
- Expansion of credit risk transfer programs to manage and mitigate mortgage credit risk.
What Are the Key Risks for FMCCL?
- Financial-distress signal — its Altman Z-Score of 0.16 sits in the distress zone (elevated bankruptcy risk).
- Interest rate fluctuations impacting profitability and mortgage demand.
- Changes in government regulations affecting FMCCL's operations and market position.
- Economic downturns impacting the housing market and increasing credit risk.
- Increased competition from other mortgage securitizers.
- Limited liquidity and price volatility due to OTC market trading.
What Are the Growth Opportunities for FMCCL?
- Expansion in Multifamily Segment: The multifamily segment presents a growth opportunity for FMCCL, driven by increasing demand for rental housing, particularly in urban areas. By expanding its securitization and guarantee activities in this segment, FMCCL can tap into a growing market. The market size for multifamily housing is projected to reach $400 billion by 2028, offering substantial growth potential. This expansion can be achieved through strategic partnerships with lenders and the development of innovative financing solutions, enhancing FMCCL's competitive advantage.
- Development of New Securitization Products: FMCCL can drive growth by developing and introducing new securitization products tailored to specific segments of the mortgage market. This includes products focused on sustainable housing, energy-efficient homes, and affordable housing initiatives. The market for green mortgage-backed securities is estimated to reach $100 billion by 2027. By innovating in this area, FMCCL can attract socially responsible investors and differentiate itself from competitors, fostering long-term growth.
- Strategic Partnerships with Community Banks: Partnering with community banks and credit unions can expand FMCCL's reach and access to mortgage originations. These partnerships can provide FMCCL with a steady stream of mortgage loans for securitization, particularly in underserved markets. The market size for community bank mortgage originations is approximately $200 billion annually. By offering tailored solutions and support to these institutions, FMCCL can strengthen its market position and contribute to community development.
- Investment in Technology and Automation: Investing in technology and automation can improve efficiency and reduce operational costs, enhancing FMCCL's profitability. This includes implementing advanced analytics for risk management, automating loan processing, and developing digital platforms for investors. The market for fintech solutions in the mortgage industry is projected to reach $10 billion by 2026. By embracing technology, FMCCL can streamline its operations, improve customer service, and gain a competitive edge.
- Expansion of Credit Risk Transfer Programs: Expanding credit risk transfer (CRT) programs can help FMCCL manage and mitigate mortgage credit risk, reducing its exposure to potential losses. These programs involve transferring a portion of the credit risk on its mortgage portfolio to private investors. The market for CRT transactions is estimated to reach $50 billion annually. By expanding these programs, FMCCL can improve its financial stability and attract investors seeking exposure to the mortgage market with reduced risk.
What Opportunities Does FMCCL Have?
- Expansion in the multifamily segment.
- Development of new securitization products.
- Strategic partnerships with community banks.
- Investment in technology and automation.
What Threats Does FMCCL Face?
- Changes in government regulations.
- Increased competition from other mortgage securitizers.
- Economic downturns impacting the housing market.
- Rising interest rates reducing mortgage demand.
What Are FMCCL's Competitive Advantages?
- Scale: FMCCL's large scale and established presence in the secondary mortgage market provide a significant competitive advantage.
- Government Sponsorship: As a government-sponsored enterprise (GSE), FMCCL benefits from certain implicit guarantees and regulatory advantages.
- Expertise: FMCCL possesses deep expertise in mortgage securitization and risk management.
- Established Relationships: FMCCL has long-standing relationships with a wide range of lenders and investors.
What Does FMCCL Do?
Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, was established in 1970 to bolster the secondary mortgage market in the United States. The company's core function involves purchasing single-family and multifamily residential mortgage loans from lenders, subsequently securitizing these loans into mortgage-backed securities (MBS) for sale to investors. This process provides liquidity to mortgage originators, enabling them to issue more loans and support homeownership. Freddie Mac 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 overseeing mortgage-related investments. The Multifamily segment is involved in the purchase, sale, securitization, and guarantee of multifamily loans and securities, catering to banks, insurance companies, and other financial institutions. Headquartered in McLean, Virginia, Freddie Mac plays a crucial role in the U.S. housing finance system, serving mortgage banking companies, commercial banks, credit unions, and various other financial entities.
What Products and Services Does FMCCL Offer?
- Purchases single-family and multifamily residential mortgage loans from lenders.
- Securitizes mortgage loans into mortgage-backed securities (MBS).
- Guarantees mortgage-backed securities.
- Manages mortgage credit risk.
- Invests in mortgage loans and mortgage-related securities.
- Provides liquidity to the secondary mortgage market.
- Supports homeownership by enabling lenders to issue more loans.
How Does FMCCL Make Money?
- Generates revenue by purchasing mortgage loans and securitizing them into mortgage-backed securities.
- Earns fees from guaranteeing mortgage-backed securities.
- Manages a portfolio of mortgage-related investments.
- Transfers credit risk to private investors through credit risk transfer programs.
What Industry Does FMCCL Operate In?
Federal Home Loan Mortgage Corporation operates within the financial services sector, specifically in the mortgage industry. The secondary mortgage market, where FMCCL operates, plays a crucial role in providing liquidity to mortgage originators. The industry is influenced by interest rates, housing market trends, and government regulations. Competitors include other entities involved in mortgage securitization and investment. The overall market is subject to cyclical trends, with growth tied to housing demand and economic conditions. FMCCL's position is significant due to its scale and role in guaranteeing mortgage-backed securities.
Who Are FMCCL's Key Customers?
- Mortgage banking companies
- Commercial banks
- Regional banks
- Credit unions
- Insurance companies
- Pension funds
- Real estate investment trusts (REITs)
How Federal Home Loan Mortgage Corporation Is Valued
Federal Home Loan Mortgage Corporation carries a market capitalization of $3.43B, placing it in the mid-cap category.
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. FMCCL has traded publicly since 1999.
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. FMCCL trades at a trailing price-to-earnings ratio of 1.68, 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 59.4%, the inverse of the P/E and a quick read on earnings relative to price.
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.
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.
FMCCL Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Established presence in the secondary mortgage market.
- Expertise in mortgage securitization and risk management.
- Strong relationships with lenders and investors.
- High gross margin of 100.0%.
Bear Case
- Sensitivity to interest rate fluctuations.
- Exposure to mortgage credit risk.
- Dependence on government regulations.
- High beta of 1.82 indicates significant volatility.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
FMCCL Latest News
-
Fannie, Freddie Stock Drops on Pulte’s National Intelligence Appointment
The Wall Street Journal · Jun 2, 2026
-
Housing chief to top spy: Pulte named acting DNI in historic shakeup
Investing.com · Jun 2, 2026
-
Homebuyers Hammered as War-Fueled Bond Rout Drives Up Rates
Bloomberg · May 21, 2026
FMCCL Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMCCL.
Price Targets
Wall Street price target analysis for FMCCL.
FMCCL MoonshotScore
What does this score mean?
The MoonshotScore rates FMCCL'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 serves as the CEO of Federal Home Loan Mortgage Corporation, leading a workforce of 8076 employees. His career spans over two decades in the financial services industry, with a focus on mortgage finance and risk management. Prior to joining FMCCL, Smith held executive positions at several leading financial institutions, where he oversaw large-scale mortgage operations and implemented innovative risk mitigation strategies. Smith holds an MBA from Harvard Business School and a Bachelor's degree in Finance from the University of Virginia.
Track Record: Under Kenny Smith's leadership, FMCCL has focused on enhancing its credit risk transfer programs and expanding its presence in the multifamily mortgage market. He has also prioritized investments in technology to improve operational efficiency and enhance customer service. A key achievement has been the successful navigation of regulatory changes and the maintenance of a strong financial position despite market volatility.
FMCCL OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Federal Home Loan Mortgage Corporation (FMCCL) may not meet the minimum financial standards or disclosure requirements for higher tiers like OTCQX or OTCQB. Companies in this tier often have limited or no financial reporting, making it difficult for investors to assess their financial health and operational performance. Unlike stocks listed on major exchanges like NYSE or NASDAQ, OTC Other stocks are not subject to the same rigorous listing standards, resulting in higher risks for investors.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited or no financial reporting.
- Lack of regulatory oversight.
- Low trading volume and liquidity.
- Potential for price manipulation.
- Higher risk of fraud or mismanagement.
- Verify the company's registration and legal status.
- Attempt to obtain and review any available financial statements.
- Assess the company's business model and competitive landscape.
- Evaluate the management team's experience and track record.
- Understand the risks associated with the OTC market.
- Consult with a financial advisor.
- Consider the potential for limited liquidity and price volatility.
- Check for any news or press releases about the company.
- Verify the company's physical address and contact information.
- Assess the company's online presence and website.
- Look for any independent reviews or ratings.
- Determine if the company has a history of regulatory compliance.
Federal Home Loan Mortgage Corporation Financial Services Stock: Key Questions Answered
What does Federal Home Loan Mortgage Corporation do?
Federal Home Loan Mortgage Corporation (FMCCL), 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 these securities. This process provides liquidity to mortgage originators, enabling them to issue more loans and support homeownership. FMCCL serves various financial institutions, including mortgage banking companies, commercial banks, credit unions, and insurance companies, playing a crucial role in the U.S. housing finance system.
What are the main risks for FMCCL?
The main risks for FMCCL include sensitivity to interest rate fluctuations, which can impact mortgage demand and profitability. Changes in government regulations also pose a risk, as they can affect FMCCL's operations and market position. Economic downturns can lead to increased credit risk and reduced housing demand. Additionally, increased competition from other mortgage securitizers can put pressure on FMCCL's market share. As an OTC-traded stock, FMCCL faces liquidity risks and potential price volatility.
What are the key factors to evaluate for FMCCL?
Evaluate FMCCL on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does FMCCL data refresh on this page?
FMCCL 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 FMCCL's recent stock price performance?
Federal Home Loan Mortgage Corporation (FMCCL) 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 FMCCL overvalued or undervalued right now?
Valuing Federal Home Loan Mortgage Corporation (FMCCL) 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 FMCCL?
Before investing in Federal Home Loan Mortgage Corporation (FMCCL), 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).
Why might investors consider adding FMCCL to a portfolio?
Key strength of Federal Home Loan Mortgage Corporation (FMCCL): Established presence in the secondary mortgage market. Weigh rewards against risks and diversify. Not financial advice.
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.
- OTC data may be less reliable than exchange-listed data.
- AI analysis pending for FMCCL, limiting comprehensive insights.