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    Small-Cap Stock Spotlight: Freddie Mac (FMCC)

    Small-Cap Stock Spotlight: Freddie Mac (FMCC)

    Shares of Freddie Mac (OTC: FMCC) jumped as much 20% to reach an intraday high of $0.36 Thursday, extending gains into a third day on above-average volume of about 8.03 million shares.  Shares in the government-chartered company have gained 38.3% in the last five days and 39.5% in the last month.  Year-to-date, the stock is down 56.3%.

    Based in McLean, Virginia, Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation’s residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders.

    Freddie Mac has been under conservatorship, with the Federal Housing Finance Agency (FHFA) acting as conservator, since September 6, 2008.

    In its latest monthly summary report, Freddie Mac reported that its total mortgage portfolio decreased at an annualized rate of 10.0% in December. Single-family refinance-loan purchase and guarantee volume was $23.3 billion in December, representing 76% of total mortgage portfolio purchases and issuances. The company’s total number of loan modifications were 5,591 for the month and 109,174 for the twelve months ended December 31, 2011.

    The aggregate unpaid principal balance (UPB) of its mortgage-related investments portfolio decreased by about $10.0 billion in December.  Meanwhile, Freddie Mac mortgage-related securities and other guarantee commitments decreased at an annualized rate of 14.8% in December.

    The company’s single-family seriously delinquent rate increased from 3.57% in November to 3.58% in December, while multifamily delinquency rate decreased from 0.28% in November to 0.22% in December.

    The measure of the company’s exposure to changes in portfolio market value (PMVS-L) averaged $302 million in December.

    Freddie Mac on Thursday released the results of its Primary Mortgage Market Survey (PMMS), showing most average mortgage rates inching higher on January’s positive employment data. The 30-year fixed remained unchanged and at its all-time record low. One year ago at this time, the 30-year fixed averaged 5.05%.

    Also this week, the company announced its sixth offering of Structured Pass-Through Certificates (K Certificates) backed exclusively by multifamily mortgages with a 7-year term.  The company expects to offer approximately $1.0 billion in K Certificates (K-706 Certificates), which are expected to price the week of February 6, 2012, and settle on or about February 28, 2012.  This is Freddie Mac’s second K Certificate offering this year.

    FMCC shares added $0.03, or 9.58%, to close trade at $0.33.  The stock has so far reached a 52-week high of $0.80, its 52-week low being $0.18. Market capitalization currently stands at 1.05 billion and it has 3.22 billion outstanding shares.

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