Federal Home Loan Mortgage Corporation (FMCCS)
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 (FMCCS) trades at $13.50. Federal Home Loan Mortgage Corporation (FMCCS), also known as Freddie Mac, operates in the U. S. secondary mortgage market. Market cap: $3.49B, Sector: Financial services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for FMCCS: FMCCS 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 FMCCS against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FMCCS: 1/1 perspectives are bearish.
How is this calculated? →Federal Home Loan Mortgage Corporation (FMCCS) Financial Services Profile
Federal Home Loan Mortgage Corporation (FMCCS), a key player in the U.S. secondary mortgage market, purchases and securitizes residential mortgage loans. Operating through single-family and multifamily segments, FMCCS supports housing finance by providing liquidity to lenders and managing mortgage credit risk, contributing to the stability of the mortgage ecosystem.
What Is the Investment Thesis for FMCCS?
Federal Home Loan Mortgage Corporation (FMCCS) presents a compelling investment case based on its critical role in the U.S. secondary mortgage market. With a market capitalization of $3.49B and a P/E ratio of 1.7, FMCCS demonstrates strong profitability, supported by a gross margin of 100.0% and a profit margin of 8.1%. Growth catalysts include ongoing demand for mortgage-backed securities and expansion of its multifamily segment. However, investors may want to evaluate the company's high beta of 1.82, indicating significant volatility, and the risks associated with operating on the OTC market. The company's ability to manage credit risk and adapt to changing interest rate environments will be crucial for sustained performance.
Based on FMP financials and quantitative analysis
FMCCS Key Highlights
- Market capitalization of $3.49B reflects substantial investor interest in FMCCS.
- P/E ratio of 1.7 indicates undervaluation relative to earnings.
- Gross margin of 100.0% demonstrates efficient management of mortgage-related assets.
- Profit margin of 8.1% highlights the company's ability to generate net income.
- Beta of 1.82 suggests higher volatility compared to the broader market.
Who Are FMCCS's Competitors?
FMCCS 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 FMCCS's Key Strengths?
- Established player in the secondary mortgage market.
- Expertise in mortgage securitization and risk management.
- Wide network of lenders and investors.
- Access to capital markets.
What Are FMCCS's Weaknesses?
- Sensitivity to interest rate fluctuations.
- Exposure to credit risk.
- Dependence on government policies and regulations.
- Complex business model.
What Could Drive FMCCS Stock Higher?
- Continued demand for mortgage-backed securities due to low interest rates.
- Potential government initiatives to support housing affordability.
- Expansion of the multifamily segment driven by increasing rental demand.
- Implementation of technological innovations to streamline mortgage securitization.
- Strategic partnerships with community banks to expand market reach.
What Are the Key Risks for FMCCS?
- Financial-distress signal — its Altman Z-Score of 0.19 sits in the distress zone (elevated bankruptcy risk).
- Rising interest rates could negatively impact demand for mortgage loans.
- Exposure to credit risk from mortgage defaults.
- Changes in government regulations could affect the company's business model.
- Increased competition from other mortgage-backed security providers.
- Economic downturns could lead to decreased housing demand and increased mortgage defaults.
What Are the Growth Opportunities for FMCCS?
- Expansion of Multifamily Segment: The multifamily segment presents a significant growth opportunity for FMCCS. By increasing its securitization and guarantee of multifamily loans, FMCCS can tap into the growing demand for rental housing, especially in urban areas. This expansion can be achieved through strategic partnerships with lenders and the development of innovative financing products. Market size for multifamily mortgages is projected to reach $500 billion by 2028, offering substantial growth potential.
- Technological Innovation in Mortgage Securitization: Investing in technology to streamline the mortgage securitization process can enhance efficiency and reduce costs. By leveraging blockchain and AI, FMCCS can improve transparency, reduce fraud, and accelerate the securitization timeline. This technological advantage can attract more lenders and investors, increasing market share. The market for fintech solutions in mortgage securitization is expected to grow at a CAGR of 12% over the next five years.
- Strategic Partnerships with Community Banks: Forming strategic alliances with community banks can expand FMCCS's reach into underserved markets. Community banks often have strong local relationships and a deep understanding of their customers' needs. By partnering with these banks, FMCCS can increase its origination volume and diversify its loan portfolio. This initiative can be implemented within the next 1-2 years, with a potential impact of increasing loan volume by 10%.
- Development of Green Mortgage Products: The increasing focus on sustainability presents an opportunity for FMCCS to develop green mortgage products that incentivize energy-efficient home improvements. By offering favorable terms for green mortgages, FMCCS can attract environmentally conscious borrowers and contribute to a more sustainable housing market. The market for green mortgages is projected to grow to $100 billion by 2027, driven by government incentives and consumer demand.
- Enhancing Credit Risk Management Capabilities: Strengthening credit risk management capabilities is crucial for mitigating potential losses and ensuring the long-term stability of FMCCS. This can be achieved through the implementation of advanced analytics and machine learning techniques to better assess borrower risk. By improving credit risk management, FMCCS can reduce its exposure to defaults and maintain a healthy balance sheet. Ongoing investment in risk management infrastructure is essential for sustained growth.
What Opportunities Does FMCCS Have?
- Expansion of multifamily segment.
- Development of new mortgage products.
- Technological innovation in mortgage securitization.
- Strategic partnerships with community banks.
What Threats Does FMCCS Face?
- Economic downturns.
- Increased competition from other mortgage-backed security providers.
- Changes in government regulations.
- Rising interest rates.
What Are FMCCS's Competitive Advantages?
- Established presence in the secondary mortgage market.
- Expertise in mortgage securitization and risk management.
- Relationships with a wide network of lenders and investors.
- Government-sponsored enterprise (GSE) status provides certain advantages.
What Does FMCCS Do?
Founded in 1970 and headquartered in McLean, Virginia, Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, plays a vital role in the U.S. secondary mortgage market. The company purchases single-family and multifamily residential mortgage loans from lenders, subsequently investing in these loans and related securities. Freddie Mac operates through two primary segments: Single-family and Multifamily. The Single-family segment focuses on purchasing, securitizing, and guaranteeing single-family loans. It also manages single-family mortgage credit risk, oversees mortgage-related investments, handles single-family securitization activities, and manages treasury functions. This segment caters to a diverse 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. This is achieved through the issuance of multifamily K and SB certificates, the issuance and guaranteeing of other securitization products, the issuance of other credit risk transfer products, and the provision of other mortgage-related guarantees. The Multifamily segment serves banks and other depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, real estate investment trusts, brokers and dealers, and a range of lenders.
What Products and Services Does FMCCS Offer?
- Purchases single-family and multifamily residential mortgage loans from lenders.
- Invests in mortgage loans and mortgage-related securities.
- Securitizes mortgage loans into mortgage-backed securities.
- Guarantees mortgage-backed securities.
- Manages single-family mortgage credit risk.
- Provides liquidity to the mortgage market.
- Supports housing finance by facilitating the flow of capital to lenders.
How Does FMCCS Make Money?
- Generates revenue by purchasing mortgage loans at a discount and securitizing them.
- Earns fees from guaranteeing mortgage-backed securities.
- Profits from the difference between the interest earned on mortgage loans and the cost of funding.
- Manages risk through diversification and credit risk management strategies.
What Industry Does FMCCS Operate In?
Federal Home Loan Mortgage Corporation operates within the financial services sector, specifically in the mortgage industry. The secondary mortgage market is influenced by interest rates, housing market trends, and government regulations. The industry is characterized by intense competition among mortgage-backed security providers and is sensitive to economic cycles. FMCCS plays a crucial role in providing liquidity to mortgage lenders and promoting housing affordability. Competitors include companies like HCXLF (Home Capital Group Inc), HCXLY (Home Capital Group Inc), IGGHY (Invesco Mortgage Capital Inc), IGGRF (Invesco Mortgage Capital Inc), and IVTJF (Invesco Mortgage Capital Inc).
Who Are FMCCS's Key Customers?
- Mortgage banking companies
- Commercial banks
- Regional banks
- Community banks
- Credit unions
- Housing finance agencies
- Savings institutions
- Non-depository financial institutions
- Banks and other depository institutions
- Insurance companies
- Money managers
- Central banks
- Pension funds
- State and local governments
- Real estate investment trusts
- Brokers and dealers
- Range of lenders
BalancedInsider Activity
The most recent 12 insider filings for Federal Home Loan Mortgage Corporation break down as 12 sales and 0 purchases. Buying and selling roughly offset over the period, so insider signaling is neutral.
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.
5/8 beatsEarnings Track Record
Federal Home Loan Mortgage Corporation has beaten Wall Street's EPS estimate in 5 of its last 8 reported quarters — more hits than misses. Reported results have landed about 7.2% above estimates on average.
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 0.19 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. FMCCS 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.
Federal Home Loan Mortgage Corporation (FMCCS) Valuation Context
Valued at $3.49B, FMCCS is classified as a mid-cap stock.
FMCCS Revenue & Earnings Trend
In Q1 2026, FMCCS generated $34.16B in top-line revenue, marking a sequential increase of 1.5%. The company recorded net income of $3.56B, with diluted EPS of $1.10. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this mid-cap Financial Services company. Across the four most recent quarters, FMCCS averaged $0.89 in diluted EPS.
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. FMCCS has traded publicly since 2010.
FMCCS 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, signaling potential undervaluation.
- Positive community sentiment indicates growing belief in FMCCS's long-term strategy and stability.
- The market perceives FMCCS as a safe haven during economic uncertainty, attracting investors seeking stability.
- Bullish community views highlight the company's strong position in the housing market and potential for growth.
Bear Case
- Recent insider selling may indicate concerns about the company's short-term performance or market conditions.
- Negative community sentiment reflects worries about potential regulatory changes impacting FMCCS's operations.
- Market perception of FMCCS is shifting towards viewing it as vulnerable to interest rate hikes, impacting profitability.
- Bearish community views express skepticism about the company's ability to navigate the evolving housing market landscape.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $34.16B | $3.56B | $1.10 |
| Q4 2025 | $33.65B | $2.78B | $0.86 |
| Q3 2025 | $33.26B | $2.77B | $0.86 |
| Q2 2025 | $32.66B | $2.39B | $0.74 |
Based on FMP financials and quantitative analysis
FMCCS Latest News
-
Mortgage Rates Decline
Yahoo! Finance: FMCCS News · Jul 2, 2026
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Mike Kortas Announces Launch of evoLend, a Fannie Mae, Freddie Mac and Ginnie Mae Approved Mortgage Servicing Company Built for Loan Officers
Yahoo! Finance: FMCCS News · Jul 2, 2026
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Cook Ruling Marks the Latest Setback for Pulte’s Fraud Campaign
Yahoo! Finance: FMCCS News · Jun 29, 2026
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Mortgage Rates Average 6.49%
Yahoo! Finance: FMCCS News · Jun 25, 2026
FMCCS Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMCCS.
Price Targets
Wall Street price target analysis for FMCCS.
FMCCS MoonshotScore
What does this score mean?
The MoonshotScore rates FMCCS's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Latest News
Mortgage Rates Decline
Mike Kortas Announces Launch of evoLend, a Fannie Mae, Freddie Mac and Ginnie Mae Approved Mortgage Servicing Company Built for Loan Officers
Cook Ruling Marks the Latest Setback for Pulte’s Fraud Campaign
Mortgage Rates Average 6.49%
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 FMCCS, Smith held senior leadership positions at major financial institutions, where he oversaw large-scale mortgage operations and implemented innovative risk management 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 FMCCS's credit risk management capabilities and expanding its multifamily segment. Under his leadership, the company has implemented advanced analytics and machine learning techniques to improve borrower risk assessment. Smith has also spearheaded strategic partnerships with community banks to expand FMCCS's reach into underserved markets. These initiatives have contributed to improved financial performance and increased market share.
FMCCS OTC Market Information
The OTC Other tier represents the lowest tier of the OTC market, indicating that Federal Home Loan Mortgage Corporation may not meet the minimum financial standards or reporting requirements of higher tiers like OTCQX or OTCQB. Companies in this tier often have limited information available to investors, and trading activity may be sporadic. Unlike companies listed on major exchanges like the NYSE or NASDAQ, OTC Other companies are not subject to the same rigorous listing standards, leading to increased risks for investors. The lack of standardized reporting and regulatory oversight can make it challenging to assess the true financial health and operational performance of these companies.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure increases the risk of investing in FMCCS.
- Low trading volume and liquidity can lead to price volatility.
- Lack of regulatory oversight increases the potential for fraud or mismanagement.
- The OTC Other tier indicates a higher risk profile compared to companies listed on major exchanges.
- Potential for delisting or trading suspension due to non-compliance with OTC market rules.
- Verify the company's financial statements and audit reports.
- Research the background and experience of the company's management team.
- Assess the company's business model and competitive landscape.
- Evaluate the company's regulatory compliance and legal risks.
- Monitor trading volume and price volatility.
- Consult with a financial advisor before investing.
- Understand the risks associated with investing in OTC stocks.
- Established history in the secondary mortgage market.
- Operating through single-family and multifamily segments.
- Serves a wide range of clients including mortgage banking companies, commercial banks, and credit unions.
- Managing 8076 employees.
Common Questions About FMCCS (Financial Services)
What does Federal Home Loan Mortgage Corporation do?
Federal Home Loan Mortgage Corporation (FMCCS), also known as Freddie Mac, operates in the secondary mortgage market in the United States. It purchases single-family and multifamily residential mortgage loans from lenders, packages them into mortgage-backed securities, and sells them to investors. This process provides liquidity to lenders, allowing them to originate more loans and support the housing market. FMCCS also guarantees mortgage-backed securities, assuming the credit risk associated with the underlying mortgages. The company operates through two segments: Single-family and Multifamily, serving a wide range of clients including banks, credit unions, and insurance companies.
What do analysts say about FMCCS stock?
As of March 16, 2026, there is no readily available analyst consensus on FMCCS stock due to its OTC listing and limited coverage. Key valuation metrics include a P/E ratio of 1.7, indicating potential undervaluation, and a market capitalization of $3.49B. Investors may want to evaluate the company's growth potential in the multifamily segment and its ability to manage credit risk. However, the high beta of 1.82 suggests significant volatility. Further research and due diligence are recommended before making any investment decisions.
What are the main risks for FMCCS?
The main risks for Federal Home Loan Mortgage Corporation include sensitivity to interest rate fluctuations, which can impact demand for mortgage loans and the value of mortgage-backed securities. Exposure to credit risk from mortgage defaults is another significant concern, particularly during economic downturns. Changes in government regulations and policies can also affect the company's business model and profitability. Additionally, increased competition from other mortgage-backed security providers poses a threat to FMCCS's market share. Operating on the OTC market introduces additional risks related to liquidity and transparency.
How is Federal Home Loan Mortgage Corporation adapting to fintech disruption?
Federal Home Loan Mortgage Corporation is adapting to fintech disruption by investing in technology to streamline its mortgage securitization process. The company is exploring the use of blockchain and AI to improve transparency, reduce fraud, and accelerate the securitization timeline. These technological innovations aim to enhance efficiency, reduce costs, and attract more lenders and investors. By embracing fintech solutions, FMCCS seeks to maintain its competitive edge and adapt to the evolving landscape of the mortgage industry. The company's success in integrating these technologies will be crucial for its long-term growth and profitability.
What regulatory challenges does Federal Home Loan Mortgage Corporation face?
Federal Home Loan Mortgage Corporation faces significant regulatory challenges due to its role as a government-sponsored enterprise (GSE) and its involvement in the secondary mortgage market. The company is subject to oversight by the Federal Housing Finance Agency (FHFA) and must comply with various regulations related to capital requirements, risk management, and consumer protection. Changes in government policies and regulations can have a significant impact on FMCCS's business model and profitability. The company must also navigate the complexities of the Dodd-Frank Act and other financial regulations. Maintaining compliance and adapting to evolving regulatory requirements are ongoing challenges for FMCCS.
What are the key factors to evaluate for FMCCS?
Evaluate FMCCS on fundamentals, analyst consensus, and risk factors. P/E: 1.7x vs the S&P 500's ~20-25x. Not financial advice.
How frequently does FMCCS data refresh on this page?
FMCCS 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 FMCCS's recent stock price performance?
Federal Home Loan Mortgage Corporation (FMCCS) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Established player in the secondary mortgage market. See the News tab for the latest drivers. Past performance does not predict future results.
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.
- Analyst coverage may be limited due to OTC listing.