Latest news for Federal Home Loan (OTC:FMCCL) Stock

Federal Home Loan

Federal Home Loan Mortgage Corp is a US based government-sponsored enterprise. The company invests in mortgage loans and mortgage-related securities. It operates in the following segments: Single-family, Multifamily. Its Single-family segment provides liquidity and support to the single-family mortgage market through a variety of activities that include the purchase, securitization, and guarantee of single-family loans originated by lenders. The company purchases multifamily loans for aggregation and then securitization through the issuance of multifamily K Certificates as well as issues and guarantees other securitization products. Majority of the revenue is earned from single family segment.

Variable Rate NonCumulative Preferred Stock

Analyst Color

Long Ideas

Politics

Analyst Ratings

Trading Ideas

General

FMCC

FMCCG

FMCCI

FMCCL

FMCCM

FMCCN

FNMA

FNMAL

FNMAO

FNMFM

Fannie Mae, Freddie Mac Preferred Shareholders Could See Huge Upside From Conversion Process

Federal Home Loan Mortgage Corp

Dodge & Cox Balanced Fund Q2 2024 Shareholder Letter

Dodge & Cox Income Fund Q2 2024 Commentary

Dodge & Cox Global Bond Fund Q2 2024 Commentary

Undercovered Dozen: United Natural Foods, Procter & Gamble, Archer Aviation, Embraer +

Tracking Bill Ackman's Pershing Square 13F Portfolio - Q2 2024 Update

Tracking Bruce Berkowitz's Fairholme Portfolio - Q2 2024 Update

Tracking John Paulson's Paulson & Company Portfolio - Q2 2024 Update

Get Your Winners To Pay For Your Losers With Chris DeMuth And Kirk Spano

BlackRock Advantage CoreAlpha Bond Fund Q3 2024 Commentary

Franklin Managed Income Fund Q3 2024 Commentary

AAPL

ABBV

ACHR

ALDX

ALNY

BACRP

BAYRY

BAYZF

BSIG

BTAFF

CHTR

COHR

EHAB

ETHE

FBTC

FMCCH

FMCCJ

FMCCK

FMCCO

FMCCP

FMCCS

FMCCT

FMCKI

FMCKJ

FMCKK

FMCKL

FMCKM

FMCKN

FMCKO

FMCKP

FNMAG

FNMAH

FNMAI

FNMAJ

FNMAK

FNMAM

FNMAN

FNMAP

FNMAS

FNMAT

FNMFN

FNMFO

FREGP

FREJN

FREJO

FREJP

GILD

GLAXF

GLPG

GLPGF

GMAB

GNMSF

GOOG

GOOGL

HBCYF

HSBC

IBIT

IMBBF

IMBBY

IMOS

IPMLF

KRKNF

MCHP

MDGL

MSTLW

NEEXU

PDLB

PPTA

PROSF

PROSY

PSHZF

RBKB

SCHW

SNYNF

SOJC

SOJD

SOJE

TCANF

TCENF

TCEYF

TCNCF

THRY

THWWW

TIAIY

TIAJF

TIAOF

TIIAY

TNCAF

TRPPF

TRPRF

UMGNF

UNFI

UNVGY

WFCNP

WLFC

Federal National Mortgage Association (OTC:<a class="ticker" href="/stock/FNMA#OTC">FNMA</a>) and Federal Home Loan Mortgage Corp (OTC:<a class="ticker" href="/stock/FMCC#OTC">FMCC</a>) investors got some good news this week when the Treasury Department and the Federal Housing Finance Agency announced that Fannie Mae and Freddie Mac will be allowed to retain $3 billion of income each in Q4 to start building up a capital cushion.
Now that capital retention is confirmed, Height Securities analyst Edwin Groshans says potential upside for Fannie and Freddie investors hinges on the details of the <a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/11/10852891/fannie-and-freddie-watch-the-latest-news-out-of-washing">housing finance</a> reform bill that is expected out <a href="https://www.housingwire.com/blogs/1-rewired/post/41888-housings-biggest-questions-going-into-2018">in January</a>.
<h3>
	Devil&#39;s In The Details</h3>
&ldquo;GSE capital retention and a legislative vehicle that leads to privatization are positive developments for Fannie Mae and Freddie Mac; however, the potential upside for junior preferred shareholders will be determined by the value allocated to the class in the transition plan, which we expect Treasury and FHFA to develop,&rdquo; Groshans wrote Friday.
He recently sat down and crunched the numbers on how much upside Fannie and Freddie junior preferred shares could deliver if they&#39;re converted to common shares at par value of $50 and $25 at conversion rates of 100 percent, 75 percent and 50 percent.
<h3>
	Path To Upside</h3>
To arrive at his estimates, Groshans divided the par value of the preferred shares by the closing price of the common shares as of Dec. 21 ($2.83 for Fannie Mae and $2.67 for Freddie Mac). Groshans then estimated that the value of those common shares will decline by 35 percent after the conversion process.
If the preferred shares are converted at a 100 percent rate, Height estimates 130 percent average upside for Freddie preferred shares and 117 percent average upside for Fannie preferred shares. Even at a 50 percent conversion rate, Groshans sees an average of 15 percent upside for Feddie preferreds and 8 percent upside for Fannie preferreds.
<h3>
	How To Play It</h3>
Groshans sees the most potential upside for Freddie Mac variable rate series B, G, L, M, and N preferred shares, which he estimates could each more than triple in value if converted at a 100 percent rate. Among Fannie Mae preferred shares, Groshans estimates the most potential upside (at least 160 percent) for series E, M, and G shares.
Here is a rundown of the tickers of the junior preferred shares mentioned above:
<ul>
	<li>
		FED HOME LOAN MTG (OTC:<a class="ticker" href="/stock/FMCCI#OTC">FMCCI</a>)</li>
	<li>
		FED HOME LOAN MTG (OTC:<a class="ticker" href="/stock/FMCCG#OTC">FMCCG</a>)</li>
	<li>
		FED HOME LOAN MTG (OTC:<a class="ticker" href="/stock/FMCCL#OTC">FMCCL</a>)</li>
	<li>
		FED HOME LOAN MTG (OTC:<a class="ticker" href="/stock/FMCCM#OTC">FMCCM</a>)</li>
	<li>
		FED HOME LOAN MTG (OTC:<a class="ticker" href="/stock/FMCCN#OTC">FMCCN</a>)</li>
	<li>
		FED NATL MORT ASSC (OTC:<a class="ticker" href="/stock/FNMFM#OTC">FNMFM</a>)</li>
	<li>
		FED NATL MORT ASSC (OTC:<a class="ticker" href="/stock/FNMAL#OTC">FNMAL</a>)</li>
	<li>
		FED NATL MORT ASSC (OTC:<a class="ticker" href="/stock/FNMAO#OTC">FNMAO</a>)</li>
</ul>
Related Links:
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/12/10945568/a-sea-change-underway-fannie-mae-freddie-mac-to-retain-">&#39;A Sea Change Underway&#39;: Fannie Mae, Freddie Mac To Retain Capital Again</a>
<a href="https://www.benzinga.com/analyst-ratings/analyst-color/17/12/10886250/why-fannie-and-freddie-have-a-path-to-survival">Why Fannie And Freddie Have A Path To Survival</a>
Image Credit: Carol M. Highsmith [Public domain], via <a href="https://commons.wikimedia.org/wiki/File:Federal_National_Mortgage_Association,_or_%22Fannie_Mae,%22_headquarters_building_in_Washington,_D.C_LCCN2011632166.tif">Wikimedia Commons</a>

Comments

Federal Home Loan

News

Latest news for Federal Home Loan (OTC:FMCCL) Stock

Friday, December 22, 2017

Popular Channels

Tools & Features

Partners & Contributors

About Benzinga