Federal Home Loan Mortgage Corporation (FMCKO)
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 (FMCKO) trades at $7.97 with AI Score 52/100 (Grade B). Federal Home Loan Mortgage Corporation (FMCKO) operates in the U. S. secondary mortgage market, purchasing and securitizing residential mortgage loans. Market cap: $3.19B, Sector: Financial services.
Price live · AI analysis from Mar 16, 2026Analyst Coverage for FMCKO: FMCKO 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 FMCKO against Financial Services peers across nine fundamental dimensions and assigns a mixed fundamental profile based on the underlying data.
FMCKO: 3/7 perspectives are bullish. Dominant signal: Ken Griffin bearish.
How is this calculated? →Federal Home Loan Mortgage Corporation (FMCKO) Financial Services Profile
Federal Home Loan Mortgage Corporation (FMCKO) facilitates liquidity in the U.S. mortgage market by purchasing and securitizing single-family and multifamily loans. Operating through its Single-family and Multifamily segments, the company supports various lenders and investors, contributing to stability within the financial services sector. With a market capitalization of $3.19B, it plays a crucial role in housing finance.
What Is the Investment Thesis for FMCKO?
Federal Home Loan Mortgage Corporation (FMCKO) presents a compelling, albeit complex, investment case. The company's role in the secondary mortgage market is critical for maintaining liquidity and supporting housing finance. Key value drivers include the spread between mortgage rates and the yield on mortgage-backed securities, as well as the volume of mortgage originations. With a P/E ratio of 1.59, FMCKO appears undervalued relative to its earnings. Growth catalysts include potential regulatory reforms that could reduce capital requirements and increase profitability. However, investors must consider the risks associated with interest rate fluctuations and credit risk. The company's high beta of 1.82 indicates significant volatility. Successful navigation of these factors could lead to substantial returns, but careful monitoring is essential.
Based on FMP financials and quantitative analysis
FMCKO Key Highlights
- Market capitalization of $3.19B reflects its significant presence in the secondary mortgage market.
- P/E ratio of 1.59 suggests potential undervaluation relative to earnings.
- Gross margin of 100.0% indicates efficient management of interest income and expenses.
- Profit margin of 8.1% demonstrates profitability in its core operations.
- Beta of 1.82 indicates higher volatility compared to the overall market.
Who Are FMCKO's Competitors?
FMCKO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| EFGXY EFG International AG | $20.80 | +0.00% | $6.22B | 44 |
| 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 |
| 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 FMCKO's Key Strengths?
- Government sponsorship provides access to capital and regulatory support.
- Established infrastructure for mortgage securitization and risk management.
- Significant market share in the secondary mortgage market.
- Expertise in managing mortgage credit risk.
What Are FMCKO's Weaknesses?
- Exposure to interest rate risk and credit risk.
- Dependence on government policies and regulations.
- Potential for political interference in business operations.
- Complex and opaque financial structure.
What Could Drive FMCKO Stock Higher?
- Potential regulatory reforms that could reduce capital requirements and increase profitability.
- Expansion of credit risk transfer (CRT) programs to reduce risk exposure.
- Increased focus on affordable housing initiatives to capitalize on growing demand.
- Technological innovation in mortgage securitization to improve efficiency.
- Strategic partnerships with fintech companies to enhance capabilities.
What Are the Key Risks for FMCKO?
- Financial-distress signal — its Altman Z-Score of 0.02 sits in the distress zone (elevated bankruptcy risk).
- Changes in government policies and regulations could negatively impact FMCKO's business.
- Increased competition from private mortgage insurers could erode market share.
- Economic downturn and housing market decline could lead to increased credit losses.
- Rising interest rates and inflation could reduce demand for mortgages.
- Exposure to interest rate risk and credit risk.
What Are the Growth Opportunities for FMCKO?
- Expansion of Credit Risk Transfer (CRT) Programs: FMCKO can further expand its CRT programs to transfer mortgage credit risk to private investors. This reduces the company's risk exposure and frees up capital for additional mortgage purchases. The market for CRT securities is growing, driven by investor demand for mortgage-related assets with varying risk profiles. By increasing the volume and diversity of CRT offerings, FMCKO can attract a broader range of investors and optimize its capital structure. Timeline: Ongoing.
- Increased Focus on Affordable Housing: FMCKO can capitalize on the growing demand for affordable housing by expanding its programs that support the financing of affordable rental and homeownership opportunities. This includes partnering with community development financial institutions (CDFIs) and other organizations to provide financing for underserved communities. The market for affordable housing is substantial and growing, driven by demographic trends and income inequality. Timeline: Ongoing.
- Technological Innovation in Mortgage Securitization: FMCKO can leverage technology to streamline the mortgage securitization process, reducing costs and improving efficiency. This includes using blockchain technology to create more transparent and secure mortgage-backed securities. The adoption of technology in the mortgage industry is accelerating, driven by the need to reduce costs and improve customer experience. By embracing innovation, FMCKO can maintain its competitive edge and attract new investors. Timeline: Ongoing.
- Strategic Partnerships with Fintech Companies: FMCKO can form strategic partnerships with fintech companies to enhance its capabilities in areas such as mortgage origination, servicing, and risk management. This includes partnering with companies that offer innovative solutions for automating the mortgage process and improving customer engagement. The fintech industry is rapidly evolving, and partnerships with fintech companies can help FMCKO stay ahead of the curve. Timeline: Ongoing.
- Expansion into New Geographic Markets: FMCKO can explore opportunities to expand its operations into new geographic markets, both domestically and internationally. This includes partnering with local lenders and investors to provide financing for housing projects in underserved areas. The global market for mortgage finance is substantial, and expansion into new markets can provide FMCKO with new sources of revenue and growth. Timeline: Ongoing.
What Opportunities Does FMCKO Have?
- Expansion of credit risk transfer programs.
- Increased focus on affordable housing initiatives.
- Technological innovation in mortgage securitization.
- Strategic partnerships with fintech companies.
What Threats Does FMCKO Face?
- Changes in government policies and regulations.
- Increased competition from private mortgage insurers.
- Economic downturn and housing market decline.
- Rising interest rates and inflation.
What Are FMCKO's Competitive Advantages?
- Government sponsorship 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.
- Significant scale and market share in the secondary mortgage market.
What Does FMCKO Do?
Founded in 1970 and headquartered in McLean, Virginia, Federal Home Loan Mortgage Corporation (FMCKO), commonly known as Freddie Mac, operates in the secondary mortgage market of 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 enhances liquidity in the mortgage market, enabling lenders to originate more loans. FMCKO operates through two primary 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 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 includes the issuance of multifamily K and SB certificates, other securitization products, credit risk transfer products, and mortgage-related guarantees. Its clients include banks, depository institutions, insurance companies, money managers, central banks, pension funds, state and local governments, real estate investment trusts, brokers, dealers, and various lenders. FMCKO's activities support housing affordability and stability by providing a consistent source of funding for mortgage lenders.
What Products and Services Does FMCKO 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 financing for affordable housing initiatives.
- Supports liquidity and stability in the U.S. mortgage market.
How Does FMCKO Make Money?
- Generates revenue from the spread between the interest earned on mortgage loans and the interest paid on MBS.
- Earns fees for guaranteeing the payment of principal and interest on MBS.
- Manages credit risk and mitigates losses through risk transfer programs.
- Invests in mortgage-related assets to generate additional income.
What Industry Does FMCKO Operate In?
Federal Home Loan Mortgage Corporation operates within the financial services sector, specifically in the mortgage industry. The secondary mortgage market, where FMCKO operates, plays a vital role in providing liquidity to mortgage lenders and promoting housing affordability. The industry is influenced by macroeconomic factors such as interest rates, economic growth, and housing market conditions. Key trends include the increasing use of technology in mortgage origination and servicing, as well as evolving regulatory requirements. The competitive landscape includes other government-sponsored enterprises (GSEs) and private mortgage insurers. FMCKO's position is unique due to its government backing and focus on both single-family and multifamily mortgages.
Who Are FMCKO's Key Customers?
- Mortgage banking companies
- Commercial banks
- Regional banks
- Credit unions
- Insurance companies
- Pension funds
- Real estate investment trusts (REITs)
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. FMCKO has traded publicly since 2010.
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 0.02 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. FMCKO 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.
FMCKO Valuation & Market Position
With a $3.19B market cap, Federal Home Loan Mortgage Corporation sits in the mid-cap segment of the market. Relative to its peer group, FMCKO's quantitative score of 52/100 is roughly in line with the peer average of 52/100.
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.
FMCKO 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 FMCKO's future performance, indicating that executives believe in the company's growth potential.
- Community sentiment has shifted positively, with discussions highlighting the stability of FMCKO amidst economic uncertainties.
- Analysts are noting a favorable outlook on housing market recovery, which could benefit FMCKO's business model significantly.
- The company's strategic initiatives to enhance liquidity and risk management are being well-received by investors.
Bear Case
- There are concerns about the potential impact of rising interest rates on FMCKO's mortgage portfolio, leading to uncertainty in profitability.
- Social sentiment reflects caution, as some investors worry about the long-term effects of regulatory changes in the housing finance sector.
- Negative community chatter has emerged regarding the company's ability to adapt to a rapidly changing economic environment.
- Recent market developments have raised questions about the sustainability of FMCKO's current business model in a competitive landscape.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
FMCKO 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
FMCKO Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMCKO.
Price Targets
Wall Street price target analysis for FMCKO.
FMCKO MoonshotScore
What does this score mean?
The MoonshotScore rates FMCKO'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 Chief Executive Officer of Federal Home Loan Mortgage Corporation. His career spans several decades in the financial services industry, with a focus on mortgage finance and risk management. Prior to joining FMCKO, Smith held leadership positions at major financial institutions, where he oversaw large-scale mortgage operations and developed 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 strengthening FMCKO's risk management framework and improving its operational efficiency. He has overseen the expansion of the company's credit risk transfer programs and has implemented new technologies to streamline the mortgage securitization process. Under his leadership, FMCKO has maintained its position as a leading player in the secondary mortgage market.
FMCKO OTC Market Information
The OTC Other tier represents the lowest tier of over-the-counter (OTC) markets. Unlike stocks listed on major exchanges like the NYSE or NASDAQ, companies on the OTC Other tier often have limited financial disclosure and may not meet minimum listing requirements. This tier typically includes companies that are distressed, in bankruptcy, or have chosen not to comply with exchange listing standards. Investing in OTC Other stocks carries significant risks due to the lack of regulation and transparency compared to listed securities.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure increases the risk of investing in FMCKO.
- Lower trading volume and wider bid-ask spreads can lead to illiquidity.
- Potential for price manipulation and fraud is higher on the OTC market.
- OTC stocks are subject to less regulatory oversight than exchange-listed stocks.
- FMCKO's OTC listing may indicate financial distress or non-compliance with listing standards.
- Verify FMCKO's financial statements and SEC filings (if any).
- Research the company's management team and their track record.
- Assess the company's business model and competitive landscape.
- Evaluate the company's capital structure and debt levels.
- Monitor trading volume and price fluctuations.
- Consult with a financial advisor before investing.
- Understand the risks associated with investing in OTC stocks.
- FMCKO's history as a government-sponsored enterprise (GSE) provides some level of credibility.
- The company's role in the secondary mortgage market is well-established.
- FMCKO's financial performance can be tracked through publicly available data.
- The company is subject to regulatory oversight by the Federal Housing Finance Agency (FHFA).
- FMCKO's management team has experience in the financial services industry.
Common Questions About FMCKO (Financial Services)
What does Federal Home Loan Mortgage Corporation do?
Federal Home Loan Mortgage Corporation (FMCKO) operates in the secondary mortgage market, purchasing mortgage loans from lenders and securitizing them into mortgage-backed securities (MBS). This process provides liquidity to the mortgage market, enabling lenders to originate more loans. FMCKO's primary goal is to stabilize the housing finance system and make homeownership more accessible. The company operates through its Single-family and Multifamily segments, serving a wide range of financial institutions and investors. By guaranteeing the timely payment of principal and interest on MBS, FMCKO reduces risk for investors and promotes investment in the mortgage market.
What are the main risks for FMCKO?
The main risks for Federal Home Loan Mortgage Corporation (FMCKO) include changes in government policies and regulations, increased competition from private mortgage insurers, economic downturn and housing market decline, and rising interest rates and inflation. Changes in government policies could impact FMCKO's capital requirements and business operations. Increased competition could erode market share and profitability. An economic downturn could lead to increased credit losses and reduced demand for mortgages. Rising interest rates could reduce affordability and slow down the housing market. Investors should carefully consider these risks before investing in FMCKO.
What are the key factors to evaluate for FMCKO?
Federal Home Loan Mortgage Corporation (FMCKO) holds an AI score of 52/100 (moderate). Not financial advice.
How frequently does FMCKO data refresh on this page?
FMCKO 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 FMCKO's recent stock price performance?
Federal Home Loan Mortgage Corporation (FMCKO) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Government sponsorship provides access to capital and regulatory support. See the News tab for the latest drivers. Past performance does not predict future results.
Should investors consider FMCKO overvalued or undervalued right now?
Valuing Federal Home Loan Mortgage Corporation (FMCKO) 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 FMCKO?
Before investing in Federal Home Loan Mortgage Corporation (FMCKO), 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 FMCKO to a portfolio?
Key strength of Federal Home Loan Mortgage Corporation (FMCKO): Government sponsorship provides access to capital and regulatory support. 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 market data may be less reliable than exchange-listed data.
- AI analysis is pending for FMCKO.