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Freddie Mac’s STACR NAIC 1 Wave Might Change The Case For Investing In FMCC

Simply Wall St · 5d ago
  • In late 2025, Freddie Mac announced that of 213 reviewed STACR Notes, 207 received the top NAIC 1 designation and 6 received NAIC 2 for the 2025 filing year.
  • This concentration of NAIC 1 ratings highlights regulators’ view of strong credit quality across most of Freddie Mac’s credit risk transfer structures, including its STACR REMIC and debt note programs.
  • We’ll now examine how this broad NAIC 1 recognition for STACR Notes may influence Freddie Mac’s investment narrative and perceived risk profile.

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What Is Federal Home Loan Mortgage's Investment Narrative?

For someone owning Freddie Mac, the big picture is believing the company can manage housing credit risk and regulation well enough to eventually turn its large revenue base of about US$22,506.0 million into sustainable profitability, despite current losses and forecasts that it stays unprofitable. The recent wave of board and CEO changes already put governance and FHFA conservatorship firmly at the center of the story, and the latest NAIC designations on STACR Notes fit into that. With 207 of 213 notes earning NAIC 1 and only 6 at NAIC 2, regulators are signaling confidence in most of Freddie Mac’s credit risk transfer structures, which may slightly ease near term concerns around capital and perceived credit quality. Given the stock’s sharp multi year run and recent volatility, this looks more like a supportive, but not transformational, catalyst for the equity narrative.

However, investors also need to weigh this against Freddie Mac’s ongoing unprofitability and governance risk under conservatorship. Federal Home Loan Mortgage's shares have been on the rise but are still potentially undervalued. Find out how large the opportunity might be.

Exploring Other Perspectives

FMCC 1-Year Stock Price Chart
FMCC 1-Year Stock Price Chart
Five Simply Wall St Community members place fair value for Freddie Mac between about US$11.94 and US$119.21, showing very wide dispersion. Set that against Freddie Mac’s continuing losses and heavy board turnover, and you can see why opinion is split on how those risks might influence future performance.

Explore 5 other fair value estimates on Federal Home Loan Mortgage - why the stock might be a potential multi-bagger!

Build Your Own Federal Home Loan Mortgage Narrative

Disagree with this assessment? Create your own narrative in under 3 minutes - extraordinary investment returns rarely come from following the herd.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.