Top 5 Sliver Stocks To Own Right Now

Top 5 Sliver Stocks To Own Right Now: Federal Home Loan Mortgage Corp (FMCC)

Federal Home Loan Mortgage Corporation (Freddie Mac) conducts business in the United States residential mortgage market and the global securities market. The Company operates in three segments: Single-family Guarantee, Investments, and Multifamily. The Single-family Guarantee segment reflects results from the Company's single-family credit guarantee activities. The Investments segment reflects results from the Company's investment, funding and hedging activities. The Multifamily segment reflects results from the Company's investment (both purchases and sales), securitization, and guarantee activities in multifamily mortgage loans and securities. The Company conducts its operations in the United States and its territories.

Single-Family Guarantee Segment

In the Companys Single-family Guarantee segment, it purchases single-family mortgage loans originated by the Companys seller/servicers in the primary mortgage market. The Company uses the mo rtgage securitization process to package the purchased mortgage loans into guaranteed mortgage-related securities. The Company guarantees the payment of principal and interest on the mortgage-related security in exchange for management and guarantee fees. The Companys customers are lenders in the primary mortgage market that originate mortgages for homeowners. These lenders include mortgage banking companies, commercial banks, savings banks, community banks, credit unions, Housing Finance Agency (HFAs), and savings and loan associations. The Companys customers also service loans in its single-family credit guarantee portfolio.

Mortgage securitization is a process, by which the Company purchase mortgage loans that lenders originate, and pool these loans into mortgage securities that are sold in global capital markets. The United States residential mortgage market consists of a primary mortgage market that links homebuyers and lenders and a! secondary mortga ge market that links lenders and investors. The Company participates in the secondary mortgage market by purchasing mortgage loans and mortgage-related securities for investment and by issuing guaranteed mortgage-related securities. In the Single-family Guarantee segment, it purchase and securitize single-family mortgages, which are mortgages that are secured by one- to four-family properties. The types of mortgage-related securities it issue and guarantee include PCs, REMICs and Other Structured Securities and Other Guarantee Transactions. The Company also issue mortgage-related securities to third parties in exchange for non-Freddie Mac mortgage-related securities. The non-Freddie Mac mortgage-related securities are transferred to trusts that were specifically created for the purpose of issuing securities, or certificates, in the Other Guarantee Transactions.

Investments Segment

In the Companys Investments segment, it invests principally in mor tgage-related securities and single-family performing mortgage loans, which are funded by other debt issuances and hedged using derivatives. In the Companys Investments segment, it also provides funding and hedging management services to the Single-family Guarantee and Multifamily segments. The Companys customers for its debt securities predominantly include insurance companies, money managers, central banks, depository institutions, and pension funds. The Company funds its investment activities by issuing short-term and long-term debt. The Companys PCs are an integral part of its mortgage purchase program. The Companys Single-family Guarantee segment purchases many of its mortgages by issuing PCs in exchange for those mortgage loans in guarantor swap transactions. The Company also issue PCs backed by mortgage loans that it purchased for cash.

Multifamily Segment

The Companys multifamily segment issues Other Structured Securities, bu t does not issue REMIC securities. The Company multifam! ily segme! nt also enters into other guarantee commitments for multifamily HFA bonds and housing revenue bonds held by third parties. The Company acquires a portion of its multifamily mortgage loans from several large seller/servicers.

The Company competes with Federal National Mortgage Association (Fannie Mae), Government National Mortgage Association (Ginnie Mae), Mae Federal Housing Administration/the United States Department of Veteran Affairs (FHA/VA) and Federal Home Loan Bank (FHLB).

Advisors' Opinion:

• [By Matt Koppenheffer]

  In the following video, Motley Fool financial analyst Matt Koppenheffer takes a question from a Fool reader on Facebook, who asks, "What is actually going on with Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) ?"

• [By Shayndi Raice]

  The Department of Justice and Bank of America(BAC) will go head-to-head Tuesday morning as the government attempts to hold the bank liable for allegedly misrepresenting the quality of loans sold to mortgage-finance firms Fannie Mae(FNMA) and Freddie Mac(FMCC).

source from Top Stocks To Buy For 2015:http://www.topstocksforum.com/top-5-sliver-stocks-to-own-right-now-2.html