Freddie Mac Single-Family Green Mortgage-Backed Securities Approached $1.9 Billion in 2023

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) reported issuing $1.85 billion in Single-Family Green Mortgage-Backed Securities (MBS) in 2023, marking a 35% increase from 2022, despite a general market decline. This issuance now represents a core business segment, doubling its share of Freddie Mac's total MBS issuance.

The 2023 Green MBS program has significant impacts, including energy savings equating to powering 2,000 homes annually, avoiding greenhouse gas emissions akin to removing 2,700 cars, and saving homeowners nearly $700 on yearly utility costs.

From 2021 through 2023, the program's total issuance reached $3.8 billion, covering over 10,000 mortgages. The 2024 plans include refining energy efficiency criteria, streamlining offerings, and establishing standards for continued growth.

Updated reports for 2021 and 2022 reflect corrected energy savings and emissions reduction estimates. The mission of Freddie Mac is to ensure housing market liquidity, stability, affordability, and equity.

Positive

• Freddie Mac issued $1.85 billion in Green MBS in 2023, a 35% increase over 2022.
• Green MBS now represents a core part of Freddie Mac's business, doubling its share of total MBS issuance.
• Significant environmental impact: equivalent to powering 2,000 homes and removing 2,700 cars from the road annually.
• Homeowners saved nearly $700 annually on utility costs due to the 2023 Green MBS program.
• The total issuance from 2021 to 2023 reached $3.8 billion, covering over 10,000 mortgages.
• Future plans include refining energy efficiency standards and streamlining offerings for program growth.

Negative

• The overall MBS market volume declined in 2023.
• Updated reports corrected previously reported savings and emission reductions, indicating initial data inaccuracies.

Freddie Mac 2023 Green MBS Impact Report Now Available

MCLEAN, Va., June 11, 2024 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today released its 2023 Green MBS Impact Report showing the company issued $1.85 billion of Single-Family Green Mortgage-Backed Securities (MBS) for the year. The report highlights the estimated impact of the Single-Family Green MBS program and provides an overview of Freddie Mac’s Sustainability Strategy and Single-Family Green Bond Framework.

“Freddie Mac’s 2023 Green MBS issuance increased by more than 35 percent over 2022, even as overall MBS market volume declined. Green MBS doubled as a portion of overall Freddie Mac MBS issuance, with securitization of Green MBS transitioning from a fledgling program to a core part of our business,” said Freddie Mac’s Barbara Pak, Vice President of Single-Family Securitization. “In 2024, we’re planning to lay the groundwork for further maturation and expansion of our Green MBS program, with refined energy efficiency requirements, streamlined offerings and establishment of standards designed to facilitate the long-term growth of our offerings and the overall market.”

Freddie Mac estimates that the collateral in its 2023 Single-Family Green MBS issuance:

• Saved enough energy to power more than 2,000 homes for a year,
• Avoided greenhouse gas emissions the equivalent of taking more than 2,700 cars off the road for a year, and
• Saved an estimated average of nearly $700 in annual utility costs for each homeowner with a mortgage included in a 2023 Freddie Mac Single-Family Green MBS.
  

From its inception in 2021 to year-end 2023 Freddie Mac Single-Family Green MBS Issuance totaled nearly $3.8 billion original unpaid principal balance of bonds. The securities were backed by more than 10,000 qualifying Freddie Mac mortgages. These included mortgages for newly constructed homes with a qualifying HERS rating; GreenCHOICE Mortgages^® where the proceeds paid off existing debt used to finance the purchase and installation of solar panels; and beginning in 2023 loans backed by newly constructed homes with a renewable energy source.

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 and associated data supplement at FreddieMac.com.

Previously reported estimates for energy savings, greenhouse gas emissions reductions and utility cost savings have been updated to reflect the correct inputs to the calculation of these estimates in Freddie Mac’s Single-Family Green MBS reports for 2021 and 2022 and related data supplements, also posted today.

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 | X | 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 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 is the total issuance value of Freddie Mac's Green MBS in 2023?

Freddie Mac issued $1.85 billion in Single-Family Green Mortgage-Backed Securities in 2023.

How much did Freddie Mac's Green MBS issuance increase in 2023 compared to 2022?

Freddie Mac's Green MBS issuance increased by more than 35 percent in 2023 compared to 2022.

What is the environmental impact of Freddie Mac's 2023 Green MBS issuance?

The 2023 Green MBS issuance saved energy equivalent to powering 2,000 homes and avoided emissions equivalent to removing 2,700 cars from the road annually.

How much did homeowners save on utility costs with Freddie Mac's 2023 Green MBS?

Homeowners saved an estimated average of nearly $700 in annual utility costs with Freddie Mac's 2023 Green MBS.

What are Freddie Mac's plans for the Green MBS program in 2024?

Freddie Mac plans to refine energy efficiency requirements, streamline offerings, and establish standards for long-term growth of the Green MBS program in 2024.