Hot Heal Care Stocks To Watch Right Now

Hot Heal Care Stocks To Watch 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 Company's Single-family Guarantee segment, it purchases single-family mortgage loans originated by the Company's 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 Company's 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 Company's 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 re! sidential 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 part! icipates 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 Company's Investments segment, it invests principally in mortgage-related securities and single-family performing mortga ge loans, which are funded by other debt issuances and hedged using derivatives. In the Company's Investments segment, it also provides funding and hedging management services to the Single-family Guarantee and Multifamily segments. The Company's 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 Company's PCs are an integral part of its mortgage purchase program. The Company's 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 Com! pany's ! multifamily segment issues Other Structured Securities, but does not issue REMIC securities. The Company multifamily s egment also enters into other guarantee commitments for mult! ifamily H! FA 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 Anna Prior]

  MGIC Investment Corp.(MTG) and Radian Group Inc.(RDN) criticized proposed standards for private-mortgage insurers seeking to do business with Fannie Mae (FNMA) and Freddie Mac (FMCC), claiming the level of liquid assets insurers would need to hold is excessive. MGIC shares slumped 13% to $8.00 premarket, while Radian shares fell 6.5% to $13.60.

• [By Dan Caplinger]

  3. Potential changes in the mortgage market present new risks.
  Wells Fargo notes its mortgage business is a key part of its overall success, and to a large extent, it relies on government-sponsored enterprises Fannie Mae (NASDAQOTCBB: FNMA  ) and Freddie Mac (NASDAQOTCBB: FMCC  ) to repurchase most of the loans it extends to customers. As the largest mortgage originator and servicer in the U.S., Wells Fargo is particularly sensitive to changes in the mortgage market, and government efforts to wind down Fannie Mae and Freddie Mac could potentially transform the industry in a way that would require a swift and strong response from the bank.

• [By Patrick Morris]

  Warren Buffett at Berkshire Hathaway has once again provided a unique and critical insight into what he believes is best for government-sponsored mortgage enterprises Fannie Mae  (NASDAQOTCBB: FNMA  )  and Freddie ! Mac  (NA! SDAQOTCBB: FMCC  ) . 

source from Top Stocks For 2015:http://www.topstocksblog.com/hot-heal-care-stocks-to-watch-right-now-2.html