Lance Drummond, a seasoned executive with substantial industry experience, is expected to assume the role of nonexecutive chair of Freddie Mac 's board in February 2024. The transition is in accordance with FMCC (OTC:FMCC) bylaws, which mandate the retirement of the current chair, Sara Mathew.
Drummond has been a member of the board since 2015, serving on various committees including the executive, audit, and operations and technology committees. He also helms the compensation and human capital committee. Prior to his tenure at Freddie Mac, Drummond held executive positions at Fiserv Inc (NYSE:FI)., Bank of America, Eastman Kodak Company, and TD Canada Trust where he managed operations such as personal and small business loan underwriting, funding, deposit operation, and fraud management.
Sara Mathew has been the non-executive chair since 2019 and has been instrumental in reinforcing Freddie Mac's commitment to affordable housing and financial stability since joining the board in 2013. In Q3 2023 alone, Freddie Mac financed 271,000 mortgages, many of which were affordable to low- to moderate-income families. This enabled 108,000 first-time homebuyers to enter the market.
Freddie Mac's single-family business's credit reserve release contributed to a net income of $2.7 billion in Q3 2023, marking a significant 104% year-over-year increase. The company also recorded net revenues of $5.7 billion during the same period.
Mathew's departure coincides with the search for a successor to CEO Michael DeVito. As she prepares for her retirement, Mathew has commended Drummond's understanding of Freddie Mac's operations and mission.
InvestingPro Insights
As Lance Drummond is set to assume the role of non-executive chair of Freddie Mac's board in February 2024, it's timely to consider some key InvestingPro Tips and data.
InvestingPro Tips suggest that Freddie Mac (FMCC) is a prominent player in the Financial Services industry, with liquid assets exceeding short-term obligations. Despite a declining trend in earnings per share, analysts predict the company will be profitable this year. The stock has shown a strong return over the last three months, and the company has seen a large price uptick over the last six months.
Turning to real-time InvestingPro Data, Freddie Mac has a market capitalization of $2130M. Its revenue as of Q3 2023 was a substantial $20.52B, with an operating income of $11.77B. The company's 3-month price total return as of the end of 2023 was an impressive 44.77%.
These insights could be particularly informative for those interested in Freddie Mac's future under Drummond's leadership. For more detailed information and tips, consider exploring InvestingPro's product offerings, which include an additional 7 tips specifically for FMCC.
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