Freddie Mac Releases Updated Single-Family Social Bond Framework
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New Mission-Centered MBS and Retooled Disclosures to Support Underserved Borrowers
MCLEAN, Va., Jan. 23, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced its updated Single-Family Social MBS and Corporate Debt Bonds Framework, which includes updates to its mortgage-backed securities (MBS) disclosures. The updates are designed to further support underserved borrowers’ access to credit and affordable housing as part of the company’s mission and goals.
“Freddie Mac puts its affordable housing finance mission at the center of its work, and the new social bond framework reflects that emphasis,” said Freddie Mac Vice President Barbara Pak, Head of Single-Family Securitization. “The framework is an evolution of our effort to provide MBS investors with actionable information and mission-driven investment opportunities. By helping investors meet their socially responsible investing goals, we’re better positioned to make home possible for underserved borrowers across the country.”
As part of the framework updates, Freddie Mac and Fannie Mae (the Enterprises) will rename their existing Social Index as the “Mission Index” in February 2024 and update the formulation of the index in May 2024 and February 2024, respectively. The renamed and reformulated Mission Index will begin to apply to pools issued by Freddie Mac beginning in June 2024 and for Fannie Mae beginning in March 2024.
The updated framework sets forth the criteria for Freddie Mac mortgage collateral that is eligible to be pooled, issued and labeled as “Social MBS” beginning with June 2024 issuances. The label will be applied to an MBS when its underlying pool exceeds a certain score in the Mission Index.
Freddie Mac obtained a second party opinion from ratings and data firm Sustainalytics that the framework is credible and impactful and aligns with the four core components of the International Capital Market Association’s Social Bond Principles 2023.
Freddie Mac also plans to provide Social MBS impact reporting annually beginning in 2025, which will help market participants understand the effects of the loans underlying their Social MBS investment.
The updated framework is being rolled out in alignment with Fannie Mae and in cooperation with FHFA.
More information on the Freddie Mac Single-Family Social MBS and Corporate Debt Bonds Framework and Mission Index is available on Freddie Mac’s website, and via the following resources:
- Freddie Mac and Fannie Mae “Mission in Focus” Commentary
- Freddie Mac Single-Family Social Bonds
- Sustainalytics Second Party Opinion
- UMBS and MBS Offering Circular
Freddie Mac’s mission is to make home possible for families across the nation. We promote liquidity, stability, affordability and equity in the housing market throughout all economic cycles. Since 1970, we have helped tens of millions of families buy, rent or keep their home. Learn More: Website | Consumers | LinkedIn | Facebook | Instagram | YouTube
This is not an offer to buy or sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC); all other reports Freddie Mac files with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act), excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information “furnished” to the SEC on Form 8-K.
The financial and other information contained in this news release speaks only as of the date of the news release. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in this news release.
The financial and other information contained in this news release is not incorporated by reference into, or a part of, any offering documents or any security. The information does not constitute a sufficient basis for making a decision with respect to the purchase and sale of any security and is directed only at, and is intended for distribution to and use by, qualified persons or entities in jurisdictions where such distribution and use is permitted and would not be contrary to law or regulation. All information regarding or relating to Freddie Mac securities is qualified in its entirety by the relevant offering circular and any related supplements. You should review the relevant offering circular and any related supplements before making a decision with respect to the purchase or sale of any security. In addition, before purchasing any security, please consult your legal and financial advisors for information about and analysis of the security, its risks and its suitability as an investment in your particular circumstances.
This news release may contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management’s expectations for the company’s future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s most recent Annual Report on Form 10-K, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at www.FreddieMac.com/investors and the SEC's website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of news release.
MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@FreddieMac.com
FAQ
What is the purpose of the updated Single-Family Social MBS and Corporate Debt Bonds Framework announced by Freddie Mac?
What is the Mission Index and how is it being updated?
What are the criteria for Freddie Mac mortgage collateral to be eligible for pooling, issuance, and labeling as 'Social MBS'?
What impact reporting does Freddie Mac plan to provide and from when?
