Federal Home Loan Mortgage Corporation (FMCCO)
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 (FMCCO) trades at $15.50. Federal Home Loan Mortgage Corporation (FMCCO) operates in the U. S. secondary mortgage market, purchasing and securitizing single-family and multifamily residential mortgage loans. Market cap: $3.73B, Sector: Financial services.
Price live · AI analysis from Mar 18, 2026Analyst Coverage for FMCCO: FMCCO 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 FMCCO against Financial Services peers across nine fundamental dimensions and assigns an underweight signal based on the underlying data.
FMCCO: 1/1 perspectives are bearish.
How is this calculated? →Federal Home Loan Mortgage Corporation (FMCCO) Financial Services Profile
Federal Home Loan Mortgage Corporation (FMCCO) operates within the U.S. secondary mortgage market, focusing on purchasing, securitizing, and guaranteeing residential mortgage loans. With segments serving diverse financial institutions, FMCCO plays a pivotal role in managing mortgage credit risk and facilitating mortgage-related investments, contributing significantly to the stability of the housing finance system.
What Is the Investment Thesis for FMCCO?
Federal Home Loan Mortgage Corporation presents a complex investment case. With a low P/E ratio of 1.45, the company appears undervalued, potentially indicating an opportunity for investors. The company's role in the secondary mortgage market and its 8.1% profit margin suggest a stable business model. However, the company's OTC listing introduces additional risks and liquidity concerns. Growth catalysts include potential expansions in its securitization activities and increased demand for mortgage-related securities. Key risks involve regulatory changes and fluctuations in interest rates, which could impact the demand for mortgage loans and securities. Investors should carefully weigh these factors, considering the company's financial stability and the inherent risks associated with OTC-listed securities, before making investment decisions.
Based on FMP financials and quantitative analysis
FMCCO Key Highlights
- Market capitalization of $3.73B indicates a substantial presence in the secondary mortgage market.
- P/E ratio of 1.45 suggests potential undervaluation relative to earnings.
- Profit margin of 8.1% demonstrates the company's ability to generate profit from its operations.
- Gross margin of 100.0% reflects the nature of the business model, primarily involving securitization and guarantees.
- Beta of 1.82 indicates higher volatility compared to the overall market, potentially due to its sensitivity to interest rate changes and economic conditions.
Who Are FMCCO's Competitors?
FMCCO is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| CCRDF Yokohama Financial Group, Inc. | $10.35 | +0.00% | $11.50B | 56 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| EFGXY EFG International AG | $20.80 | +0.00% | $6.22B | 44 |
| IGGHY IG Group Holdings plc | $25.84 | +3.36% | $8.54B | 52 |
| ITCFY Investec Group | $15.83 | +3.67% | $6.73B | 56 |
| 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 FMCCO'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 FMCCO's Weaknesses?
- Sensitivity to interest rate fluctuations
- Exposure to mortgage credit risk
- Reliance on government support
- OTC listing introduces additional risks
What Could Drive FMCCO Stock Higher?
- Potential regulatory changes that could benefit GSEs.
- Continued demand for mortgage-backed securities.
- Expansion of affordable housing initiatives.
- Implementation of new technologies to improve efficiency.
What Are the Key Risks for FMCCO?
- Financial-distress signal — its Altman Z-Score of 0.16 sits in the distress zone (elevated bankruptcy risk).
- Regulatory changes that could negatively impact GSEs.
- Economic downturn leading to increased mortgage defaults.
- Interest rate fluctuations impacting mortgage demand.
- Competition from other financial institutions in the mortgage market.
- OTC market risks including liquidity and transparency concerns.
What Are the Growth Opportunities for FMCCO?
- Expansion of Multifamily Securitization: FMCCO can capitalize on the growing demand for affordable housing by expanding its multifamily securitization activities. The U.S. multifamily housing market is projected to reach $2.5 trillion by 2028, presenting a significant opportunity for FMCCO to increase its market share through innovative securitization products and partnerships with lenders and developers. This expansion could involve issuing more multifamily K and SB certificates, attracting a broader range of investors and driving revenue growth.
- Increased Adoption of Credit Risk Transfer (CRT) Products: FMCCO can further develop and promote its credit risk transfer (CRT) products to mitigate risks associated with mortgage loans. The CRT market is expected to grow as lenders seek to reduce their exposure to potential losses. By offering a wider range of CRT products and expanding its investor base, FMCCO can enhance its risk management capabilities and attract more capital to the mortgage market. This strategy aligns with regulatory efforts to promote a more resilient and diversified housing finance system.
- Leveraging Technology for Enhanced Efficiency: FMCCO can invest in technology to streamline its operations, improve efficiency, and reduce costs. This includes implementing advanced data analytics tools to better assess mortgage risk, automating loan processing workflows, and enhancing its online platforms for lenders and investors. By embracing digital transformation, FMCCO can gain a competitive edge, improve customer satisfaction, and drive long-term growth. The fintech market is rapidly evolving, and FMCCO's ability to adapt and innovate will be crucial for its success.
- Strategic Partnerships with Community Banks and Credit Unions: FMCCO can forge strategic partnerships with community banks and credit unions to expand its reach and access new markets. These partnerships can involve offering tailored securitization solutions, providing technical assistance, and co-investing in affordable housing projects. By collaborating with local financial institutions, FMCCO can support community development, promote financial inclusion, and strengthen its relationships with key stakeholders. This approach can also help FMCCO diversify its loan portfolio and reduce its reliance on larger national lenders.
- Expansion into New Mortgage-Related Services: FMCCO can explore opportunities to offer new mortgage-related services, such as mortgage servicing rights (MSR) valuation, loan portfolio analytics, and risk management consulting. These services can generate additional revenue streams and enhance FMCCO's value proposition to lenders and investors. By leveraging its expertise in the mortgage market, FMCCO can become a trusted advisor and partner to financial institutions, further solidifying its position as a leading player in the industry. The market for mortgage-related services is expected to grow as lenders seek to optimize their operations and manage risk more effectively.
What Opportunities Does FMCCO Have?
- Expansion of multifamily securitization activities
- Increased adoption of credit risk transfer (CRT) products
- Leveraging technology for enhanced efficiency
- Strategic partnerships with community banks and credit unions
What Threats Does FMCCO Face?
- Regulatory changes
- Economic downturn
- Increased competition from other financial institutions
- Potential for housing market instability
What Are FMCCO's Competitive Advantages?
- Established presence in the secondary mortgage market with decades of experience.
- Strong relationships with lenders and investors.
- Expertise in mortgage securitization and risk management.
- Government-sponsored enterprise (GSE) status provides certain advantages.
What Does FMCCO Do?
Founded in 1970 and headquartered in McLean, Virginia, Federal Home Loan Mortgage Corporation (FMCCO), also known as Freddie Mac, operates in the secondary mortgage market in the United States. The company's core function involves purchasing single-family and multifamily residential mortgage loans originated by lenders. These loans are then securitized and sold to investors, providing liquidity to the mortgage market and enabling lenders to originate more loans. FMCCO also invests directly in mortgage loans and mortgage-related securities. 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. It also manages single-family mortgage credit risk, overseeing mortgage-related investments, securitization activities, and treasury functions. This segment serves a broad 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, along with other securitization products and credit risk transfer products. 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. FMCCO plays a crucial role in the U.S. housing market by providing stability and affordability through its activities in the secondary mortgage market.
What Products and Services Does FMCCO 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.
- Serves mortgage banking companies, commercial banks, credit unions, and other financial institutions.
How Does FMCCO Make Money?
- Generates revenue by charging guarantee fees on securitized mortgage loans.
- Earns income from investments in mortgage loans and mortgage-related securities.
- Profits from the difference between the purchase price of mortgage loans and the proceeds from securitization.
- Manages risk through credit risk transfer products and hedging strategies.
What Industry Does FMCCO Operate In?
Federal Home Loan Mortgage Corporation operates within the financial services sector, specifically in the mortgage industry. The company plays a critical role in the secondary mortgage market, which is essential for providing liquidity to mortgage lenders and supporting the housing market. The industry is influenced by macroeconomic factors such as interest rates, inflation, and economic growth. Competitors include other financial institutions involved in mortgage securitization and investment. The mortgage industry is currently facing challenges related to rising interest rates and potential economic slowdown, which could impact the demand for mortgage loans and securities.
Who Are FMCCO'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. FMCCO has traded publicly since 2001.
How Federal Home Loan Mortgage Corporation Is Valued
Federal Home Loan Mortgage Corporation carries a market capitalization of $3.73B, placing it in the mid-cap category.
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. FMCCO 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.
FMCCO 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
- Government-sponsored enterprise (GSE) status
Bear Case
- Sensitivity to interest rate fluctuations
- Exposure to mortgage credit risk
- Reliance on government support
- OTC listing introduces additional risks
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · July 2026
FMCCO 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
FMCCO Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for FMCCO.
Price Targets
Wall Street price target analysis for FMCCO.
FMCCO MoonshotScore
What does this score mean?
The MoonshotScore rates FMCCO'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, leading a team of 8076 employees. His background includes extensive experience in the financial services industry, with a focus on mortgage finance and risk management. Prior to joining FMCCO, Smith held leadership positions at various financial institutions, where he oversaw mortgage lending, securitization, and investment activities. He holds an MBA from a top-tier business school and has been recognized for his contributions to the housing finance industry.
Track Record: Under Kenny Smith's leadership, FMCCO has focused on strengthening its risk management capabilities and expanding its presence in the multifamily mortgage market. He has overseen the implementation of new technologies to improve efficiency and reduce costs. Smith has also emphasized the importance of strategic partnerships with community banks and credit unions to expand FMCCO's reach and support affordable housing initiatives.
FMCCO 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 listing requirements of higher tiers like OTCQX or OTCQB. Companies in this tier often have limited financial disclosure and may not be subject to the same regulatory oversight as companies listed on major exchanges like the NYSE or NASDAQ. Investing in companies on the OTC Other tier carries significantly higher risks due to the lack of transparency and potential for fraud or manipulation. The OTC Other tier differs significantly from major exchanges, which have stringent listing requirements, including minimum financial standards and corporate governance practices.
- OTC Tier: OTC Other
- Disclosure Status: Unknown
- Limited financial disclosure and transparency
- Potential for fraud or manipulation
- Low trading volume and liquidity
- Wider bid-ask spreads
- Higher price volatility
- Verify the company's financial statements and reporting practices.
- Research the company's management team and their track record.
- Assess the company's business model and competitive landscape.
- Evaluate the company's regulatory compliance.
- Understand the risks associated with investing in OTC-listed securities.
- Consult with a financial advisor.
- Check for any legal or regulatory actions against the company.
- Established presence in the secondary mortgage market
- Government-sponsored enterprise (GSE) status
- Long operating history
- Relationships with reputable lenders and investors
Common Questions About FMCCO (Financial Services)
What does Federal Home Loan Mortgage Corporation do?
Federal Home Loan Mortgage Corporation (FMCCO) operates in the secondary mortgage market, purchasing mortgage loans from lenders, securitizing them into mortgage-backed securities (MBS), and guaranteeing the timely payment of principal and interest to investors. This process provides liquidity to the mortgage market, enabling lenders to originate more loans and supporting homeownership. FMCCO also invests in mortgage loans and mortgage-related securities, contributing to the stability and affordability of the housing finance system. The company serves a wide range of financial institutions, including banks, credit unions, and insurance companies.
What are the main risks for FMCCO?
The main risks for FMCCO include regulatory changes that could impact its operations and profitability, economic downturns that could lead to increased mortgage defaults, and interest rate fluctuations that could affect the demand for mortgage loans and securities. Additionally, the company faces competition from other financial institutions in the mortgage market. As an OTC-listed company, FMCCO is also subject to liquidity and transparency concerns, which could increase price volatility and make it more difficult to buy or sell shares. These risks should be carefully considered by potential investors.
What are the key factors to evaluate for FMCCO?
Evaluate FMCCO on fundamentals, analyst consensus, and risk factors. Not financial advice.
How frequently does FMCCO data refresh on this page?
FMCCO 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 FMCCO's recent stock price performance?
Federal Home Loan Mortgage Corporation (FMCCO) 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 FMCCO overvalued or undervalued right now?
Valuing Federal Home Loan Mortgage Corporation (FMCCO) 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 FMCCO?
Before investing in Federal Home Loan Mortgage Corporation (FMCCO), 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 FMCCO to a portfolio?
Key strength of Federal Home Loan Mortgage Corporation (FMCCO): 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 FMCCO, limiting comprehensive insights.