According to Freddie Mac’s 2023 Green MBS Impact Report, the company issued $1.85 billion of Single-Family Green Mortgage-Backed Securities (MBS) for the 2023 calendar 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% 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, VP 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 it’s green MBS issuances:
- 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.
Since it’s inception in 2021 to the end of the calendar year 2023, Freddie Mac’s Single-Family Green MBS issuances have now totalled 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 since the beginning in 2023 loans backed by newly constructed homes with some sort of 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.
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