Federal Home Loan Mortgage Corporation (FMCCN) Stock Analysis
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 (FMCCN) trades at $12.31. Federal Home Loan Mortgage Corporation (FMCCN), also known as Freddie Mac, operates in the U. S. secondary mortgage market. Market cap: $3.24B, Sector: Financial services.
Price as of Aug 21, 2026 · Last analyzed: Mar 16, 2026Analyst Coverage for FMCCN: FMCCN 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 FMCCN against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FMCCN: 1/3 scored disciplines lean bearish. Dominant signal: Ken Griffin bearish.
How is this calculated? →Federal Home Loan Mortgage Corporation (FMCCN) Financial Services Profile
Federal Home Loan Mortgage Corporation (FMCCN) facilitates liquidity in the U.S. mortgage market by purchasing and securitizing residential mortgages. Operating through single-family and multifamily segments, FMCCN supports lenders and investors, contributing to housing finance accessibility. With a high beta of 1.82, FMCCN exhibits significant market volatility.
What Is the Investment Thesis for FMCCN?
FMCCN presents a mixed investment thesis. The company's role in the secondary mortgage market provides a stable business model, evidenced by a gross margin of 100.0%. However, the high beta of 1.82 indicates significant volatility, making it sensitive to market fluctuations. With a P/E ratio of 1.59, the company appears undervalued relative to its earnings, but this may reflect underlying risks in the mortgage market. Growth catalysts include potential expansion in multifamily housing finance and innovative securitization products. Investors should closely monitor interest rate changes and regulatory developments, which could significantly impact FMCCN's profitability and market position. The absence of a dividend yield may deter income-focused investors.
Based on FMP financials and quantitative analysis
FMCCN Key Highlights
Market capitalization of $3.24B indicates substantial size and influence in the secondary mortgage market.
- P/E ratio of 1.59 suggests the company may be undervalued compared to its earnings.
- Gross margin of 100.0% reflects the company's efficient business model in securitizing and guaranteeing mortgages.
- Beta of 1.82 indicates high volatility relative to the overall market.
- Profit margin of 8.1% demonstrates profitability within the financial services sector.
Who Are FMCCN's Competitors?
FMCCN 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. | $45.84 | -0.35% | $6.50B | 50 |
| BKAHF Bank of Ayudhya Public Company Limited | $0.70 | -0.00% | $5.15B | 51 |
| IGGHY IG Group Holdings plc | $16.79 | +0.48% | $5.57B | 52 |
| IGGRF IG Group Holdings plc | $22.85 | +0.00% | $7.54B | 53 |
| IVTJF Investec Group | $9.18 | +0.00% | $7.81B | 53 |
| FMCCH Federal Home Loan Mortgage Corporation | $12.80 | +0.00% | $3.24B | 50 |
| FMCKO Federal Home Loan Mortgage Corporation | $7.95 | +0.00% | $3.19B | 52 |
| FMCKM Federal Home Loan Mortgage Corporation | $7.40 | -4.95% | $3.15B | 50 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are FMCCN's Key Strengths?
Established presence in the secondary mortgage market.
- Government-sponsored enterprise (GSE) status.
- Expertise in mortgage securitization and risk management.
- Strong relationships with lenders and investors.
What Are FMCCN's Weaknesses?
High sensitivity to interest rate fluctuations.
- Exposure to mortgage credit risk.
- Reliance on government support.
- Complex regulatory environment.
What Could Drive FMCCN Stock Higher?
Potential regulatory reforms in the housing finance market could positively impact FMCCN's business model.
- New product launches in the securitization space could drive revenue growth by Q4 2026.
- Expansion of affordable housing initiatives could increase demand for FMCCN's services.
- Potential partnerships with fintech companies to enhance operational efficiency by mid-2027.
What Are the Key Risks for FMCCN?
Financial-distress signal — its Altman Z-Score of 0.16 sits in the distress zone (elevated bankruptcy risk).
- Interest rate volatility could negatively impact FMCCN's profitability and mortgage demand.
- Economic downturns and housing market corrections could lead to increased credit losses.
- Regulatory changes and increased scrutiny could increase compliance costs and limit business activities.
- Increased competition from private mortgage insurers could erode market share.
- The OTC market carries inherent risks due to lack of regulation and transparency.
What Are the Growth Opportunities for FMCCN?
- Expansion in Multifamily Housing Finance: The demand for multifamily housing is increasing, driven by urbanization and demographic shifts. FMCCN can capitalize on this trend by expanding its multifamily loan purchase and securitization programs. This includes offering innovative financing solutions for affordable housing projects and sustainable building initiatives. The multifamily mortgage market is projected to reach $500 billion by 2028, presenting a significant growth opportunity for FMCCN.
- Development of Innovative Securitization Products: FMCCN can enhance its competitiveness by developing new securitization products that cater to evolving investor preferences and risk profiles. This includes creating green mortgage-backed securities (MBS) and social MBS that align with environmental, social, and governance (ESG) investing trends. These products can attract a wider range of investors and improve FMCCN's market position.
- Strategic Partnerships with Fintech Companies: Collaborating with fintech companies can enable FMCCN to streamline its operations, improve customer experience, and enhance its data analytics capabilities. This includes partnering with fintech firms specializing in mortgage origination, servicing, and risk management. These partnerships can help FMCCN reduce costs, improve efficiency, and gain a competitive edge. The fintech mortgage market is projected to grow at a CAGR of 15% over the next five years.
- Geographic Expansion into Underserved Markets: FMCCN can explore opportunities to expand its operations into underserved markets with high housing demand and limited access to mortgage financing. This includes focusing on rural areas and communities with a high proportion of first-time homebuyers. By providing mortgage financing in these markets, FMCCN can contribute to economic development and improve housing affordability. The underserved mortgage market is estimated to be worth $200 billion.
- Enhancing Credit Risk Transfer (CRT) Programs: FMCCN can further develop its CRT programs to reduce its exposure to mortgage credit risk and attract private capital. This includes issuing new CRT securities and expanding the scope of existing programs. By transferring credit risk to private investors, FMCCN can improve its financial stability and reduce its reliance on government support. The CRT market is expected to grow as investors seek higher yields and diversification opportunities.
What Are FMCCN's Competitive Advantages?
- Government-sponsored enterprise (GSE) status provides a competitive advantage in the mortgage market.
- Established relationships with a wide network of lenders and investors.
- Expertise in mortgage securitization and risk management.
- Scale and efficiency in purchasing and securitizing mortgage loans.
What Does FMCCN Do?
Founded in 1970 and headquartered in McLean, Virginia, Federal Home Loan Mortgage Corporation (FMCCN), commonly known as Freddie Mac, plays a crucial role in the U.S. secondary mortgage market. The company's primary function is to purchase single-family and multifamily residential mortgage loans from lenders, thereby providing them with liquidity and enabling them to originate more loans. FMCCN also invests in mortgage loans and mortgage-related securities. The company operates through two main segments: Single-family and Multifamily. The Single-family segment focuses on purchasing, securitizing, and guaranteeing single-family mortgage loans. It also manages single-family mortgage credit risk and oversees mortgage-related investments, securitization activities, and treasury functions. This segment serves a wide range of clients, including mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies, savings institutions, and non-depository financial institutions. The Multifamily segment is involved in the purchase, sale, securitization, and guarantee of multifamily loans and securities. It issues multifamily K and SB certificates, as well as other securitization products and credit risk transfer products. This segment serves banks, insurance companies, money managers, central banks, pension funds, state and local governments, real estate investment trusts, and brokers and dealers.
What Products and Services Does FMCCN 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 through various risk transfer mechanisms.
- Invests in mortgage loans and mortgage-related securities.
- Provides liquidity to the mortgage market, enabling lenders to originate more loans.
- Supports affordable housing initiatives through targeted financing programs.
How Does FMCCN Make Money?
- Generates revenue by charging guarantee fees on securitized mortgages.
- Earns income from investments in mortgage loans and mortgage-related securities.
- Manages credit risk through risk-sharing arrangements and credit enhancements.
- Purchases mortgages from lenders, providing them with capital to originate new loans.
What Industry Does FMCCN Operate In?
FMCCN operates within the financial services sector, specifically in the mortgage industry. The secondary mortgage market is crucial for maintaining liquidity and stability in the housing market. FMCCN competes with other government-sponsored enterprises (GSEs) and private entities involved in mortgage securitization. The industry is heavily influenced by interest rates, regulatory policies, and housing market trends. Growth in the mortgage market is tied to economic conditions and demographic shifts. The industry is also facing increasing competition from fintech companies offering alternative mortgage solutions.
Who Are FMCCN's Key Customers?
- Mortgage banking companies
- Commercial banks
- Regional and community banks
- Credit unions
- Housing finance agencies
- Savings institutions
- Non-depository financial institutions
- Investors in mortgage-backed securities
Forward Outlook
Wall Street analysts project Federal Home Loan Mortgage Corporation revenue of about $24.65B for fiscal 2026, with EPS near $4.07. The estimate reflects 4 contributing analysts.
FMCCN Valuation & Market Position
With a $3.24B market cap, Federal Home Loan Mortgage Corporation sits in the mid-cap segment of the market.
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. FMCCN 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.
Financial 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.
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. FMCCN has traded publicly since 2010.
FMCCN 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.
- Government-sponsored enterprise (GSE) status.
- Expertise in mortgage securitization and risk management.
- Strong relationships with lenders and investors.
Bear Case
- High sensitivity to interest rate fluctuations.
- Exposure to mortgage credit risk.
- Reliance on government support.
- Complex regulatory environment.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · August 2026
FMCCN Latest News
-
Mortgage Rates in US Increase to 6.69%, Highest Since July 2025
Bloomberg · Aug 6, 2026
FMCCN Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMCCN.
Price Targets
Wall Street price target analysis for FMCCN.
FMCCN MoonshotScore
What does this score mean?
The MoonshotScore rates FMCCN 0-100 on quantitative fundamentals — growth, financial health, valuation, momentum, and risk.
Leadership: Kenny Smith
CEO
Kenny Smith is the CEO of Federal Home Loan Mortgage Corporation. His career spans over two decades in the financial services industry, with a focus on mortgage finance and risk management. Prior to joining FMCCN, Smith held leadership positions at several major financial institutions, where he oversaw large-scale mortgage operations and developed innovative risk mitigation strategies. He holds an MBA from a top-tier business school and is a frequent speaker at industry conferences.
Track Record: Since assuming the role of CEO, Kenny Smith has focused on enhancing FMCCN's operational efficiency and strengthening its risk management framework. He has overseen the implementation of new technologies to streamline mortgage securitization processes and improve customer service. Under his leadership, FMCCN has expanded its presence in the multifamily housing market and launched several new credit risk transfer programs.
FMCCN OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that FMCCN may not meet the minimum financial standards or reporting requirements of higher tiers like OTCQX or OTCQB. Companies in this tier may have limited or no financial disclosure, making it difficult for investors to assess their financial health and operational performance. Investing in OTC Other stocks carries significant risks due to the lack of transparency and regulatory oversight compared to stocks listed on major exchanges like the NYSE or NASDAQ.
- OTC Tier: OTC Other
- Limited financial disclosure increases the risk of investing in FMCCN.
- Low trading volume and wide bid-ask spreads can lead to price volatility and difficulty in executing trades.
- Lack of regulatory oversight increases the potential for fraud and manipulation.
- The OTC Other tier designation indicates that FMCCN may not meet minimum financial standards.
- Potential for delisting or suspension from the OTC market.
- Verify the company's registration and compliance status with regulatory agencies.
- Review any available financial statements and disclosures.
- Assess the company's business model and competitive landscape.
- Evaluate the management team's experience and track record.
- Monitor trading volume and price volatility.
- Understand the risks associated with investing in OTC Other stocks.
- Consult with a financial advisor before making any investment decisions.
- The company has been operating since 1970.
- FMCCN plays a significant role in the U.S. secondary mortgage market.
- The company has a large employee base of 8076.
- FMCCN has a market capitalization of $3.24B.
- The company operates through two segments: Single-family and Multifamily.
What Investors Ask About Federal Home Loan Mortgage Corporation (FMCCN) — Financial Services
What does Federal Home Loan Mortgage Corporation do?
Federal Home Loan Mortgage Corporation (FMCCN), or Freddie Mac, operates in the secondary mortgage market in the United States. It 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.
What are the main risks for FMCCN?
FMCCN faces several key risks, including interest rate volatility, which can impact mortgage demand and profitability. Economic downturns and housing market corrections could lead to increased credit losses. Regulatory changes and increased scrutiny could increase compliance costs and limit business activities. Increased competition from private mortgage insurers could erode market share.
What are the key factors to evaluate for FMCCN?
Evaluate FMCCN on fundamentals, analyst consensus, and risk factors. FMCCN presents a mixed investment thesis. The company's role in the secondary mortgage market provides a stable business model, evidenced by a gross margin of 100.0%. Not financial advice.
How frequently does FMCCN data refresh on this page?
FMCCN's price was last updated on Aug 21, 2026 and refreshes on page view during U.S. market hours — it is not a real-time exchange feed. Fundamentals update after quarterly filings; the MoonshotScore recalculates nightly; news aggregates continuously.
What has driven FMCCN's recent stock price performance?
Federal Home Loan Mortgage Corporation (FMCCN) 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 FMCCN overvalued or undervalued right now?
Federal Home Loan Mortgage Corporation (FMCCN) has no trailing P/E available here, so lean on price-to-sales and cash flow in the Financials tab. Compare P/E, P/S, and EV/EBITDA against sector peers for a full view.
How do I research FMCCN before investing?
Before investing in Federal Home Loan Mortgage Corporation (FMCCN), 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) analyst consensus ratings and price targets (see Analyst tab), and (4) specific risk factors that could impact the stock (see Risk Factors section).
Why might investors consider adding FMCCN to a portfolio?
Key strength of Federal Home Loan Mortgage Corporation (FMCCN): 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.
- Limited analyst coverage due to OTC listing.
- Financial data based on available information and may be incomplete.
- OTC market investments carry significant risks.