Freddie Mac (FMCC) Stock Price & How to Invest
Last updated October 2026
Short answer
Freddie Mac (FMCC) is a government-sponsored enterprise that guarantees and securitizes US home and apartment loans, and you can buy its OTC-traded common shares at most major brokers. It is a profitable business wrapped in a highly speculative stock: Treasury owns a senior preferred stake with a ~$146.6 billion liquidation preference plus warrants for ~79.9% of the common, so the shares mostly trade on conservatorship-exit politics.
FMCC stock price
As of 2026-10-23, Freddie Mac (FMCC) last closed at $3.66, down 67.8% over the past year. Over the past 52 weeks it has traded between $2.92 and $11.36.
Prices are daily closing prices from Yahoo Finance and may be delayed. For the live quote, check your broker or Freddie Mac's investor relations page. Walnut is informational, not investment advice.
What does Freddie Mac (FMCC) do?
Freddie Mac, formally the Federal Home Loan Mortgage Corporation, is one of the two government-sponsored enterprises (GSEs) that keep the US mortgage market liquid. It does not lend to homebuyers directly. Instead it buys conforming loans from banks and mortgage companies, pools them into mortgage-backed securities, and guarantees investors timely payment of principal and interest in exchange for a guarantee fee. It also runs a large multifamily business that finances apartment buildings. Its total mortgage portfolio is roughly $3.7 trillion, and it has been in federal conservatorship, overseen by the Federal Housing Finance Agency (FHFA), since September 2008.
The operating business is solid. Freddie Mac earned about $10.7 billion in 2025 on roughly $23.3 billion of net revenue, then posted ~$3.6 billion of net income in Q1 2026 (up 27% from a year earlier) and ~$3.8 billion in Q2 2026 (up 61%), helped by credit reserve releases and net interest income growth of about 13%. Net worth reached ~$77.8 billion at June 30, 2026, up from ~$64.8 billion a year earlier, because the company has been allowed to retain its earnings rather than send them to Treasury. Even so, that is well short of the ~$161 billion of total capital its regulator requires. Third-quarter results are expected around October 29, 2026.
The stock is a very different story from the business. FMCC rallied to about $15 in September 2025 on hopes that the Trump administration would release the GSEs and sell shares in a public offering, then fell roughly 67% in 2026 as the plan stalled, a January directive had the GSEs buy mortgage bonds to push rates down, analysts cut their odds of privatization, and Michael Burry said he had sold his common shares for junior preferred. By mid-October 2026 the shares traded in the mid-$3 range, a market value of only ~$2.2 billion to ~$2.5 billion. Every dollar of that value depends on how Treasury's ~$146.6 billion senior preferred claim and its warrants are resolved, which is a policy decision, not an earnings outcome.
What's driving Freddie Mac (FMCC)?
1. Conservatorship exit and a public offering
The single biggest driver of FMCC is whether, when and how Freddie Mac leaves conservatorship. FHFA Director Bill Pulte said in 2025 the administration was evaluating a public offering, possibly as early as late 2025, and the stock ran from roughly $1 to about $15 on that prospect. That timeline slipped. In mid-2026 the President said there was no rush, and Pulte took on a second role as acting director of national intelligence, which analysts read as a sign of lower priority. An offering at around 1x to 1.25x book value, the range bulls have cited, would still require Treasury to decide how much of its stake to convert or cancel, which determines what the existing ~650 million common shares are worth.
2. Retained earnings and the capital gap
Since 2019 Freddie Mac has been allowed to keep its profits, and net worth has climbed from almost nothing to ~$77.8 billion at mid-2026, growing about 20% a year. That is the raw material for any release. The problem is the target: FHFA's capital framework required about $161 billion of total capital at June 30, 2026, including roughly $60 billion of buffers, so the gap is still near $80 billion or more. At a run rate of ~$13 billion to ~$15 billion of annual net income, closing it organically would take five years or longer, unless the rule is loosened or new equity is raised from outside investors, which would dilute current shareholders.
3. Guarantee fees, credit and the housing cycle
Underneath the politics, Freddie Mac is a credit-guarantee business. Net revenue of ~$6 billion a quarter comes mostly from net interest income on guarantee fees and its investment portfolio, which rose ~10% to ~$5.6 billion in Q1 2026. Credit has been benign: the company released ~$320 million of reserves in Q1 and ~$880 million in Q2 2026. Results are sensitive to home prices, unemployment and mortgage rates, which affect delinquencies, refinancing volume and the size of the guarantee book. A housing downturn would reverse reserve releases into builds, as happened in 2025 when higher provisions helped cut full-year net income by about 10%.
4. Policy directives and the mortgage bond purchases
Because the government controls the company, policy goals can override shareholder economics. In January 2026 the President directed Fannie Mae and Freddie Mac to buy about $200 billion of mortgage-backed securities to help lower mortgage rates. Their combined retained portfolios had already grown to about $278 billion, against a cap of $250 billion each under the Treasury agreements. Larger portfolios can lift net interest income but add interest-rate and spread risk, and analysts said the directive signalled that the GSEs were being used as policy tools, which pushed privatization further out. Similar directives on guarantee fees, credit standards or affordable-housing goals could change profitability with little notice.
What are the risks to Freddie Mac (FMCC)?
The core risk is that FMCC common sits at the bottom of a capital structure controlled by its largest creditor. Treasury's senior preferred stock carries a liquidation preference of ~$146.6 billion at June 30, 2026, rising to ~$150.4 billion at September 30 and growing with every quarter of retained earnings, which is nearly double the company's entire net worth. Treasury also holds warrants to buy ~79.9% of the common at a nominal price. Any recapitalization could leave existing common holders with a small slice, or almost nothing, depending on choices made in Washington. Timing risk is also real: KBW cut its odds of privatization to about 30% and its price target to $3.50, and some analysts expect the uncertainty to last years. Litigation cuts both ways: a D.C. Circuit decision in July 2026 upheld a ~$612 million jury verdict for shareholders over the 2012 net worth sweep, while a legacy securities suit by the Ohio Public Employees Retirement System, which Freddie Mac won at summary judgment in 2025, is on appeal. The shares trade OTC with large daily swings (an ~11.7% drop on October 12, 2026 alone), and headlines from officials or prominent investors can move them sharply in either direction.
What is the Freddie Mac (FMCC) forecast?
4 analysts publish price targets on FMCC, averaging $10.88 against a $3.93 price as of October 2026, or +176.8%. The published targets run from $3.50 to $24.00, a wide spread, and the ratings split 2 buy, 2 hold, 1 sell. Over the last six months there have been 0 raises and 1 cut among the published actions. A price target is what an analyst published on a date, not a prediction, and sell-side ratings skew positive across the whole market.
Read the full FMCC forecast and price target for the target table, the recent rating actions by firm, and how the consensus has shifted.
Is FMCC a buy or a sell?
We give no verdict on Freddie Mac. Both cases are real, which is why the question is contested at all, so here is the strongest version of each.
The case for buying. Conservatorship exit and a public offering. The single biggest driver of FMCC is whether, when and how Freddie Mac leaves conservatorship. The most optimistic published target, $24.00, assumes this works close to its best case.
The case against. The core risk is that FMCC common sits at the bottom of a capital structure controlled by its largest creditor. The most pessimistic target, $3.50, is roughly what FMCC is worth if this bites instead.
Read the full bull and bear case on FMCC, including what would have to change to break either one. Walnut is not an investment adviser.
How is Freddie Mac (FMCC) valued? (approximate, October 2026)
A simple financial snapshot. These are approximations and refresh quarterly; for current figures see Freddie Mac's investor relations page or your broker.
- Net revenue (TTM): ~$23.7 billion (FY2025 ~$23.3B; Q2 2026 ~$6.0B)
- Net income (TTM): ~$12.9 billion (Q1 2026 ~$3.6B, Q2 2026 ~$3.8B)
- Net worth: ~$77.8 billion at June 30, 2026, up ~20% YoY
- Treasury senior preferred: ~$146.6B liquidation preference, rising to ~$150.4B (Sep 30, 2026)
- Treasury warrant stake: ~79.9% of common stock
- Market cap: ~$2.5 billion (OTC, shares near ~$3.90 in late October 2026)
Normal valuation metrics break down for FMCC. Freddie Mac earned roughly $12.9 billion over the trailing year and holds ~$77.8 billion of net worth, yet the common stock is valued at only ~$2.2 billion to ~$2.5 billion, a fraction of one year's profit. The reason is that common shareholders currently have no claim on those earnings: Treasury's senior preferred liquidation preference exceeds net worth, and its warrants cover ~79.9% of the common. The market cap is best read as the price of an option on a favorable conservatorship exit, and the drop from a peak near $15 in September 2025 shows the market now assigns that outcome much lower odds. Q3 2026 results are expected around October 29.
Who competes with Freddie Mac (FMCC)?
The other GSE
Fannie Mae (FNMA) is Freddie Mac's direct twin, with a larger ~$4 trillion guaranty book, ~$112.7 billion of net worth and the same conservatorship, Treasury stake and political overhang. Both issue the same Uniform Mortgage-Backed Security, so they compete loan by loan for lender volume on guarantee fees, pricing and service, and their stocks tend to move together.
Government-insured lending
Ginnie Mae securities backed by FHA, VA and USDA loans offer an explicit full-faith-and-credit guarantee and serve first-time and lower-down-payment borrowers. When FHA premiums fall or conforming standards tighten, volume shifts between the government channel and the GSEs, so policy at HUD and FHFA directly shapes Freddie Mac's market share.
Private capital and bank balance sheets
Large banks such as JPMorgan Chase, Wells Fargo and Bank of America can hold jumbo and non-conforming loans on their own balance sheets, while private-label securitizers and the Federal Home Loan Banks offer other funding routes. Private mortgage insurers like MGIC, Essent, Radian and Enact are partners as well as alternatives, sharing credit risk alongside Freddie Mac.
What stocks are similar to Freddie Mac (FMCC)?
Other names that sit close to FMCC: same theme, named as a direct competitor, or held beside it in the same funds. Each entry says which. Worth a look if you are thinking about diversification within a thesis rather than concentration on one ticker.
How to invest in Freddie Mac (FMCC)
There are three common ways to get FMCC exposure. Buy shares (or fractional shares) directly at any major broker. Hold an ETF that includes it, which spreads the position across many companies. Or build it into a focused thematic portfolio, so FMCC sits alongside other stocks that express the same thesis.
Walnut takes the portfolio route. Describe a thesis where FMCC fits (for example “AI infrastructure” or “dividend-growth large-caps”) and the AI proposes 5 to 6 constituents with target weights. You review the plan and fund it through your own broker when you're ready.
New to this? Start with how to invest in stocks, see how to analyze a stock with AI, or compare the best AI stock analyzers.
The bottom line on Freddie Mac (FMCC)
Freddie Mac earns roughly $13 billion a year, but the common stock is a political option on a conservatorship exit, and with Treasury's claims ahead of it, that option has lost ~67% in 2026.
More on Freddie Mac (FMCC)
Whether FMCC is worth buying today depends more on your time horizon and what you already hold than on any single call. We walk through valuation, what would have to go right, and the risks in is FMCC a buy or a sell?, and where the stock could go from here in the FMCC stock forecast.
For income investors, whether FMCC pays a dividend and how the payout looks is covered in does FMCC pay a dividend? And to weigh FMCC against a peer, read the full side-by-side comparisons: FMCC vs FNMA and FMCC vs JPM.
Wondering how FMCC fits the portfolio you already own? Walnut is an AI investing app that connects your brokerage read-only and answers questions like that about your actual holdings: overlap, concentration, and how each position tracks the S&P 500. Compare the best AI portfolio analyzers or see the best AI investing apps in 2026.
Investing in Freddie Mac with AI
Connect the broker you already use and ask Walnut's AI how FMCC fits what you actually hold: whether you own it already through a fund, what it would do to your concentration, and how it has tracked the S&P 500. Read-only by default, and you approve anything before it reaches your broker.
FAQ
What does Freddie Mac actually do?
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Freddie Mac buys conforming mortgages from lenders, bundles them into mortgage-backed securities and guarantees that investors in those securities receive principal and interest even if borrowers default. In return it earns a guarantee fee, typically a fraction of a percentage point of the loan balance each year, and it earns interest on loans and securities it holds in its retained portfolio. It runs two main businesses: single-family, which covers most US home loans it backs, and multifamily, which finances apartment buildings and has been shifting toward fully guaranteed securitizations. Its total mortgage portfolio is about $3.7 trillion. By standing behind the credit risk, Freddie Mac lets lenders recycle capital and makes the 30-year fixed-rate mortgage widely available at lower rates than private markets alone would offer.
Why is Freddie Mac in conservatorship?
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In September 2008, during the financial crisis, rising mortgage defaults threatened to overwhelm Freddie Mac's thin capital. The government placed it and Fannie Mae into conservatorship under the newly created FHFA, and Treasury agreed to inject capital in exchange for senior preferred stock and warrants for ~79.9% of each company's common. Freddie Mac drew about $71 billion. In 2012 the agreements were changed to a net worth sweep that sent nearly all profits to Treasury, which shareholders challenged in court for years. Since 2019 the companies have been allowed to retain earnings to rebuild capital, but each retained dollar has also been added to Treasury's liquidation preference, which is why that claim, ~$146.6 billion at mid-2026, keeps growing.
How profitable is Freddie Mac right now?
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Freddie Mac is consistently profitable. It earned about $10.7 billion in 2025, down roughly 10% from 2024 as non-interest income weakened and credit loss provisions rose to about $1.3 billion. 2026 has been stronger: net income was ~$3.6 billion in Q1 and ~$3.8 billion in Q2, the latter up 61% year over year, helped by an ~$880 million credit reserve release and ~13% growth in net interest income. Net revenue has held near $6 billion per quarter. Over the trailing twelve months, that adds up to roughly $12.9 billion of net income. None of it is paid out to common shareholders, because the company is retaining earnings to build capital and Treasury's claims rank ahead of the common.
Why did FMCC stock fall so much in 2026?
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FMCC rose to about $15 in September 2025 on expectations of a near-term release from conservatorship and a public offering. In 2026 those expectations faded. A January directive had the GSEs buy about $200 billion of mortgage bonds to lower rates, which analysts read as the government using them as policy tools rather than preparing them for sale. Public statements suggested no rush on an offering, the FHFA director took on a second government role, and KBW cut its privatization odds to about 30%. In October, Michael Burry said he had sold his common shares for junior preferred, and the stock fell about 21% in three trading days before a partial rebound. By mid-October it was down ~67% year to date.
How is FMCC different from Fannie Mae (FNMA)?
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The two companies do nearly the same thing under the same conservatorship, and their stocks usually move together. Fannie Mae is larger, with a guaranty book of about $4 trillion and net worth of about $112.7 billion, versus Freddie Mac's ~$3.7 trillion portfolio and ~$77.8 billion of net worth. Historically Fannie Mae has bought more loans from large banks while Freddie Mac has served many smaller lenders, though the gap has narrowed since both began issuing the same Uniform Mortgage-Backed Security in 2019. Each has its own Treasury senior preferred claim and warrant stake, so the terms of any release could differ, and the market sometimes prices one ahead of the other on news specific to its capital position.
How can I get exposure to Freddie Mac?
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FMCC common trades over the counter, so it is available at most major US brokers, often with fractional shares, though spreads and volatility are higher than for exchange-listed stocks. Freddie Mac also has many series of junior preferred stock trading OTC, which rank ahead of the common and which some investors prefer as a way to express the same thesis with a different payoff. Mortgage-focused ETFs generally hold Freddie Mac's mortgage-backed securities rather than its stock, which is a bet on mortgage bonds, not on the company. Some investors hold FMCC as a small position within a broader housing or financials basket. Walnut is not an investment adviser, and this is a description of the options, not a recommendation.
Walnut is informational, not investment advice. Financial figures on this page are approximations; always verify current numbers with Freddie Mac's investor relations page or your broker before making investment decisions.