Freddie Mac has released its 2022 Green MBS Impact Report [1] showing that the company issued $1.372 billion in Single-Family Green Mortgage-Backed Securities (MBS) for 2022. The report [1] provides an overview of Freddie Mac’s Sustainability Strategy and Single-Family Green Bond Framework, and highlights the estimated impact of the enterprise’s Single-Family Green MBS program.
“Freddie Mac has joined a growing movement of investors and other capital markets participants who are building a more robust market for environmentally focused investments,” said Freddie Mac’s Mark Hanson, SVP of Securitization [2]. “The size of our Green MBS issuance doubled from 2021 to 2022, reflecting market demand for this type of product and the expansion of eligible collateral to include loans backed by homes with a qualifying Home Energy Rating System (HERS) score. By meeting the needs of green investors in this way, we are making home possible for more individuals and families.”
From its inception in 2021 to year-end 2022, Freddie Mac Single-Family Green MBS Issuance totaled nearly $2 billion unpaid principal balance of bonds. The bonds were backed by more than 6,400 Freddie Mac mortgages secured by newly constructed homes with a qualifying HERS rating, or GreenCHOICE Mortgages [3] where the proceeds or portion thereof from each refinanced mortgage paid off existing debt that was used to finance the purchase and installation of solar panels.
Freddie Mac estimates that the collateral in its 2022 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 nearly 3,800 cars off the road for a year
- Saved an estimated average of $722 in annual utility costs for each homeowner with a mortgage included in a 2022 Freddie Mac Single-Family Green MBS.