Freddie Mac's Green Bond Program Expands with Single-Family Green Bond Framework and Second Party Opinion

Rhea-AI Summary

Freddie Mac (FMCC) has introduced its Single-Family Green Bond Framework, reinforcing its commitment to sustainable housing and long-term stakeholder value. The program has received a Light Green Second Opinion rating from CICERO Shades of Green. Since April 2021, Freddie Mac has issued over $600 million in Single-Family Green MBS, primarily financing energy-efficient improvements, including solar panel installations. The framework now broadens eligible mortgages, promoting green construction and energy efficiency. Additionally, Freddie Mac has issued $4.56 billion in Multifamily Green Bonds, designed to enhance water and energy efficiency.

Positive

• Freddie Mac issued over $600 million in Single-Family Green MBS since April 2021.
• The Single-Family Green Bond Framework received a Light Green Second Opinion from CICERO Shades of Green.
• The framework broadens the criteria for eligible mortgages, promoting green construction.

Negative

• None.

MCLEAN, Va., Jan. 03, 2022 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today announced its Single-Family Green Bond Framework under its Single-Family Green Bond Program, supporting the company’s commitment to promote environmentally sustainable single-family housing to help reduce climate-related risks and increase affordability. Freddie Mac’s Single-Family Green Bond Framework recently received a Light Green Second Opinion rating from CICERO Shades of Green. CICERO provides second opinions on institutions’ frameworks and independent reviews of green bonds. Freddie Mac’s Single-Family Green Bond Framework and associated CICERO Second Opinion are available at FreddieMac.com.

“Freddie Mac’s sustainability strategy strengthens our commitment to our mission, helps us drive long-term stakeholder value and makes a difference in communities nationwide,” said Mark Hanson, senior vice president of securitization for Freddie Mac. “Through our Single-Family Green MBS, we’re financing energy-efficient homes and home improvements to help more families achieve and maintain affordable homeownership while reducing the housing sector’s environmental impact.”

Freddie Mac has issued more than $600 million in Single-Family Green MBS since the first bond was issued in April 2021. Each Single-Family Green MBS issued to-date is backed by Freddie Mac GreenCHOICE Mortgages^®, where borrowers used refinance proceeds to finance energy efficient home improvements. Specifically, a portion of the proceeds from each refinanced mortgage backing these Single-Family Green MBS paid off existing debt that was used to finance the purchase and installation of solar panels as a renewable energy source. Currently, Freddie Mac reviews appraisal reports to confirm the presence of solar panels on properties securing each mortgage included in our Single-Family Green MBS issuances.

Freddie Mac’s Single-Family Green Bond Framework broadens the criteria of eligible mortgages available for securitization into Single-Family Green MBS. Mortgages backed by newly constructed homes with a renewable energy source and mortgages backed by newly constructed homes with a Home Energy Rating System Index Score of 60 or less, now meet Freddie Mac’s requirements for the Single-Family Green MBS program. This expansion of eligible energy efficient mortgages will help encourage green construction and energy efficiency home improvements. The company plans to issue Single-Family Green MBS with additional eligible collateral, as defined by the Framework, in the coming months.

In addition to the Single-Family Green Bond program, Freddie Mac has issued $4.56 billion of Multifamily Green Bonds to date, backed by Green Up and Green Up Plus^® loans. The loans are designed to support water and/or energy efficiency improvements in workforce housing, helping the environment while lowering monthly expenses for tenants and borrowers. Freddie Mac’s 2020 Impact Bonds Report further explains the impacts of the Multifamily Green Bonds. Multifamily Green Bonds received a Light Green Second Opinion from CICERO Shades of Green and are issued in accordance with the Freddie Mac Multifamily Green Bonds Framework. The framework is aligned with the four core components of the International Capital Market Association's Green Bond Principles.

Visit the Single-Family Green Bonds page at FreddieMac.com for details on Freddie Mac’s Single-Family Green MBS program.

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 announcement and in the documents that may be accessed through this announcement 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 announcement.

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

INVESTOR CONTACT: Laurie Garthune
571-382-4732

FAQ

What is Freddie Mac's Single-Family Green Bond Framework?

It is a program aimed at promoting environmentally sustainable single-family housing and increasing affordability.

How much has Freddie Mac issued in Single-Family Green MBS?

Freddie Mac has issued over $600 million in Single-Family Green MBS since April 2021.

What rating did the Single-Family Green Bond Framework receive?

The framework received a Light Green Second Opinion rating from CICERO Shades of Green.

What types of mortgages are eligible under the new framework?

Mortgages backed by newly constructed homes with renewable energy sources or a Home Energy Rating System Index Score of 60 or less are now eligible.

How much has Freddie Mac issued in Multifamily Green Bonds?

Freddie Mac has issued $4.56 billion in Multifamily Green Bonds to date.