Federal Home Loan Mortgage Corporation

Federal Home Loan Mortgage Corporation, commonly known as Freddie Mac, operates in the secondary mortgage market in the United States. Its business is structured into two segments: Single-Family and Multifamily. The Single-Family segment purchases, securitizes, and guarantees single-family loans, managing mortgage credit and market risk, as well as mortgage-related investments and securitization activities. The Multifamily segment purchases, securitizes, and guarantees multifamily loans, including the issuance of multifamily K certificates. Freddie Mac serves a wide range of clients such as mortgage banking companies, commercial banks, credit unions, and insurance companies. The company was incorporated in 1970 and is headquartered in McLean, Virginia.

FMCCN is traded on the OTC Markets OTCQB exchange under the symbol FMCCN. The trading currency is the US Dollar (USD). As an over-the-counter security, it is not listed on major exchanges like the NYSE or Nasdaq, but it is still actively traded in the US over-the-counter market. Investors should be aware that OTC stocks may have different liquidity and reporting requirements compared to exchange-listed stocks.

Federal Home Loan Mortgage Corporation operates in the Financial Services sector, specifically within the Mortgage Finance industry. This means the company is primarily involved in providing financing for residential and commercial real estate mortgages. As a government-sponsored enterprise (GSE), it plays a key role in the US housing market by ensuring liquidity, stability, and affordability in the secondary mortgage market. Its activities include purchasing loans from lenders, securitizing them into mortgage-backed securities, and guaranteeing timely payment of principal and interest to investors.

Federal Home Loan Mortgage Corporation is headquartered in McLean, Virginia, United States. It serves the US secondary mortgage market, operating nationwide. The company works with a variety of financial institutions including mortgage banking companies, commercial banks, regional banks, community banks, credit unions, housing finance agencies (HFAs), savings institutions, and non-depository institutions. Additionally, its investor base includes insurance companies, money managers, central banks, pension funds, state and local governments, real estate investment trusts (REITs), and brokers and dealers. While its primary focus is the US market, its securities are held by investors globally.

Federal Home Loan Mortgage Corporation generates revenue primarily through its two business segments. In the Single-Family segment, it earns guarantee fees for assuming credit risk on mortgage loans it securitizes, as well as interest income from its mortgage-related investment portfolio. The Multifamily segment earns similar guarantee fees and interest income from multifamily loans and securities, including structured transactions like K certificates. Additionally, the company manages treasury functions and engages in securitization activities that generate fee income. By purchasing loans from lenders and packaging them into securities, Freddie Mac profits from the spread between the interest earned on loans and the cost of funding, along with guarantee fees for credit risk management.