Freddie Mac (FMCC, Financial) has disclosed the outcomes of its recent offer to buy back any and all STACR Notes. The Notes involved in this offer were originally issued by specific STACR trusts. With Freddie Mac holding the owner certificate for each trust, it stands as the sole beneficial owner. The tender offer has been conducted following the stipulations outlined in the Offer to Purchase document dated April 30, 2025, along with the Notice of Guaranteed Delivery released on the same date.
By 5:00 p.m. on May 6, 2025, around $1.7 billion in original principal amount of the Notes had been validly tendered without being withdrawn. Capitalized terms, unless otherwise defined, retain their meaning as provided in the Offer Documents.
FMCC Key Business Developments
Release Date: May 01, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Federal Home Loan Mortgage Corp (FMCC, Financial) reported a solid net income of $2.8 billion for the first quarter, increasing its net worth to $62 billion.
- The company supported 313,000 families in renting or refinancing homes, with 52% of single-family loan purchases aiding first-time homebuyers.
- Net interest income rose by 7% year-over-year to $5.1 billion, driven by mortgage portfolio growth and lower funding costs.
- The single-family segment saw a 16% increase in net income to $2.3 billion, with net revenues up by 10% year-over-year.
- Multifamily new business activity increased to $10 billion, with 66% of eligible rental units affordable to low-income families.
Negative Points
- Noninterest income declined by 25% year-over-year, primarily due to decreased net investment gains in the multifamily segment.
- The multifamily segment reported a 35% decrease in net income, driven by lower noninterest income and less favorable fair value changes.
- The provision for credit losses increased to $280 million, primarily due to credit reserve builds in the single-family segment.
- The multifamily delinquency rate increased to 46 basis points, driven by delinquencies in floating rate loans.
- The single-family serious delinquency rate rose by 7 basis points year-over-year, influenced by loans originated during and after 2022 and impacts from hurricanes.
