In 2022, the national federally sponsored secondary mortgage market Freddie Mac, launched its Single-Family Green Mortgage-Backed Securities (Green MBS) program. The program provides financial incentives to mortgage lenders who sell home mortgages to the company of homes with a RESNET HERS Index Score of 60 or below. The recently released Freddie Mac 2023 Green MBS Impact Report stated that the company issued $1.85 billion of Single-Family Green Mortgage-Backed Securities (MBS) for the year. This represented more than a 35% increase over the program’s volume in 2022 “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.” For more information on the Freddie Mac Green MBS program click on Freddie Mac Green MBS Freddie Mac is a publicly traded, government-sponsored enterprise, headquartered in Tysons Corner, Virginia. Freddie Mac was created in 1970 to expand the secondary market for mortgages in the US. The secondary mortgage market buys mortgages, pools them, and sells them as a mortgage-backed security (MBS) to private investors on the open market. This secondary mortgage market increases the supply of money available for mortgage lending and increases the money available for new home purchases.
