Freddie Mac Reports Impact of Its Single-Family Green Mortgage-Backed Securities Issuance

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) released its 2021 Green MBS Impact Report, highlighting its Single-Family Green Bond Framework. The report showcases the impact of $617 million in Green MBS issuance, backed by 2,454 GreenCHOICE refinanced mortgages. This initiative contributed to powering 1,877 homes, avoided greenhouse gas emissions equivalent to 2,433 cars, and saved homeowners an average of $1,027 in annual utility costs. Freddie Mac aims to innovate in the green financing space while enhancing its sustainability efforts.

Positive

• Single-Family Green MBS issuance totaled $617 million in 2021.
• Estimated energy savings power 1,877 homes.
• Avoided greenhouse gas emissions equivalent to 2,433 cars off the road.
• Homeowners saved an average of $1,027 in annual utility costs.

Negative

• None.

MCLEAN, Va., Nov. 18, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released its Green MBS Impact Report for 2021, providing transparency under the enterprise’s Single-Family Green Bond Framework. In addition to reporting the impact of the Single-Family Green MBS Program’s 2021 issuance, the report provides an overview of Freddie Mac’s Corporate Environmental, Social and Governance focus areas and Single-Family Green Bond Framework.

“Freddie Mac’s sustainability focus strengthens our commitment to our mission and helps us drive long-term value for our stakeholders while making a difference in our communities,” said Freddie Mac’s Mark Hanson, Senior Vice President, Securitization. “This first Single-Family Impact Report covers the inaugural year of Green Mortgage-Backed Security issuance. But instead of a summary and conclusion, this report is just the beginning of our journey. We intend to innovate in this space and foster a market for these loans.”

According to the report, 2021 Freddie Mac Single-Family Green MBS Issuance totaled $617 million of bonds, backed by 2,454 Freddie Mac GreenCHOICE Mortgage® refinance loans. At least a portion of proceeds from each refinanced mortgage paid off existing debt that had been used to finance the purchase and installation of solar panels as a renewable energy source. Prior to MBS issuance, Freddie Mac confirmed the presence of a renewable energy source installed on the properties securing each of the mortgages included in the issuance.

To calculate the metrics described in the report, Freddie Mac developed a methodology in coordination with Earth Advantage®, Inc., a 501(c)(3) non-profit that is working to create an informed and humane residential real estate marketplace.

Based on the methodology, Freddie Mac estimates that its 2021 Single-Family Green MBS issuance:

• Netted enough energy to power 1,877 homes,
• Avoided greenhouse gas emissions the equivalent of taking 2,433 cars off the road for a year, and
• Saved an average of $1,027 in annual utility costs for each homeowner with a GreenCHOICE Mortgage included in a 2021 Freddie Mac Single-Family Green MBS.
  

For more information on how these figures were calculated and other benefits of Freddie Mac’s Single-Family Green MBS issuance and associated Single-Family Green Bond Framework, please see the report at FreddieMac.com.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we’ve made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, and taxpayers. Learn more at FreddieMac.com, Twitter @FreddieMac, and Freddie Mac’s blog FreddieMac.com/blog.

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 and in the documents that may be accessed through this news release speaks only as of the date of those documents. 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 those documents.

These materials 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 http://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 this news release.

MEDIA CONTACT: Fred Solomon
703-903-3861
Frederick_Solomon@freddiemac.com

FAQ

What does Freddie Mac's 2021 Green MBS Impact Report highlight?

The report highlights the impact of $617 million in Green MBS issuance backed by 2,454 GreenCHOICE refinanced mortgages.

How much energy did Freddie Mac's Green MBS issuance save?

The issuance netted enough energy to power 1,877 homes.

What are the environmental benefits of Freddie Mac's Green MBS?

It avoided greenhouse gas emissions equivalent to taking 2,433 cars off the road for a year.

How much did homeowners save through Freddie Mac's GreenCHOICE Mortgages?

Homeowners saved an average of $1,027 in annual utility costs.

What is Freddie Mac's goal with its Green Bond Framework?

Freddie Mac aims to innovate in green financing and enhance sustainability efforts.