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. It does not originate mortgages directly but instead purchases, securitizes, and guarantees mortgage loans made by other lenders. The company operates through two segments: Single-Family and Multifamily. The Single-Family segment focuses on single-family loans, managing mortgage credit and market risk, and handling mortgage-related investments and securitization. The Multifamily segment purchases, securitizes, and guarantees multifamily loans, and issues multifamily K certificates. By providing liquidity, stability, and affordability to the mortgage market, Freddie Mac helps banks and other lenders continue offering home loans to borrowers.

Federal Home Loan Mortgage Corporation is traded on the OTC Markets OTCQB exchange under the ticker symbol FMCCT. Its financials are reported in US Dollars (USD), reflecting its operations in the United States. The OTCQB is a venture market for early-stage and developing U.S. and international companies, providing transparent trading for investors. As a U.S.-based company, all its transactions, assets, and liabilities are denominated in USD.

Federal Home Loan Mortgage Corporation operates in the Financial Services sector, specifically within the Mortgage Finance industry. This industry includes companies that provide financing for real estate by originating, purchasing, securitizing, and guaranteeing mortgage loans. As a government-sponsored enterprise (GSE), Freddie Mac plays a key role in the U.S. housing finance system by ensuring a steady flow of funds to mortgage lenders, thereby supporting homeownership and rental housing. Its activities are closely tied to the health of the housing market and interest rate trends.

Federal Home Loan Mortgage Corporation is headquartered in McLean, Virginia, United States. It serves the entire U.S. secondary mortgage market, working with a wide range 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. Its customers also include insurance companies, money managers, central banks, pension funds, state and local governments, real estate investment trusts (REITs), and brokers and dealers. By purchasing loans from these lenders, Freddie Mac provides them with capital to originate new mortgages, thereby supporting the U.S. housing market nationwide.

Federal Home Loan Mortgage Corporation generates revenue primarily through its two business segments. In the Single-Family segment, it earns guarantee fees for assuming the credit risk on mortgage loans it securitizes into mortgage-backed securities (MBS). It also earns interest income from its retained mortgage-related investments portfolio and from treasury functions. In the Multifamily segment, it similarly earns guarantee fees and interest income from multifamily loans and securities, including K certificates. Additionally, Freddie Mac may earn income from managing its investment portfolio, which includes mortgage-related securities and other investments. Its business model relies on the spread between the interest earned on assets and the cost of funding, as well as fee income from guaranteeing and securitizing loans.