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2023 

 

 

 

2023 SCORECARD FOR FANNIE MAE, 

FREDDIE MAC, AND COMMON 

SECURITIZATION SOLUTIONS 

December 2022 
 

 

 

 

 

 

2023 Scorecard 

2023 SCORECARD FOR FANNIE MAE, FREDDIE MAC, AND 

COMMON SECURITIZATION SOLUTIONS 

For all Scorecard items, Fannie Mae and Freddie Mac (the Enterprises) and Common 

Securitization Solutions, LLC (CSS) will be assessed based on the following criteria: 

Assessment Criteria 

• Each Enterprise’s products and programs foster liquid, competitive, efficient, and 

resilient housing finance markets that support affordable, sustainable, and equitable 

access to homeownership and rental housing. 

• Each Enterprise conducts business in a safe and sound manner. 

• Each Enterprise meets expectations under all FHFA requirements, including those 

pertaining to capital, liquidity, and credit risk transfer. 

• Each Enterprise continues to manage operations while in conservatorship in a manner 

that preserves and conserves assets through the prudent stewardship of Enterprise 

resources. 

• Each Enterprise cooperates and collaborates with FHFA to meet the Conservator’s 

priorities and guidance throughout the course of the year. 

• Each Enterprise delivers work products that are high quality, thorough, creative, 

effective, and timely, and that consider effects on homeowners, multifamily property 

owners, and renters, the Enterprises, the industry, and other stakeholders. 

• Each Enterprise ensures that diversity, equity, and inclusion remain top priorities in 

strategic planning, operations, and business development. 

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Promote Equitable Access to Affordable and Sustainable Housing (50%) 

Conduct business and undertake initiatives that support affordable, sustainable, and equitable 

access to homeownership and rental housing, and fulfill all statutory mandates. 

Take significant actions to ensure that all borrowers and renters have equitable access to 

sustainable long-term affordable housing opportunities, including efforts that further 

energy efficiency, resiliency, and cost savings in the mortgage process. Develop and 

implement strategies to support and advance the following: 

• Sustainable homeownership and affordable rental housing 

o Explore options to expand energy efficiency and to improve resiliency 

product offerings and policy guidelines. 

o Explore the feasibility of expanding tenant protections in properties financed 

by the Enterprises. 

o Identify strategies and activities to facilitate greater affordable housing supply 

within the limits of charter authorities. 

o Plan for implementation of the approved credit score models, informed by 

stakeholder outreach. 

• Equitable access to housing 

o Take meaningful actions to achieve the goals and objectives of the 

Enterprises’ Equitable Housing Finance Plans. 

o Continue efforts to minimize single-family appraisal bias and improve 

valuation equity, including by supporting FHFA's implementation of the 

Property and Valuation Equity (PAVE) action plan. 

• Efficiency in the mortgage market 

o Continue modernization of single-family appraisal processes and practices. 

o Leverage data, technology, and other innovations to promote efficiency and 

cost savings in mortgage processes. 

• Climate risks 

o Identify and pursue measures to enhance consumer awareness of climate risks 

in housing. 

o Continue research to identify at-risk borrowers, properties, and communities 

to inform policy and improve climate-resiliency efforts. 

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Manage new multifamily purchases to remain within the multifamily cap requirements, 

including an expanded focus on workforce/moderate income housing. 

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2023 Scorecard 

Operate the Business in a Safe and Sound Manner (50%) 

Operate with heightened focus on safety and soundness and with a prudent risk profile 

consistent with continued support for housing finance markets throughout the economic cycle, 

while minimizing the risk of requiring a draw against the Treasury commitment. 

Ensure that the Enterprise is resilient to operational, market, credit, counterparty, 

economic, and climate risks. 

• Address examination and supervision findings promptly. 

• Maintain effective risk management systems appropriate for entities that need to 

minimize risk to capital as they rebuild their capital buffers. 

• Take appropriate action to address risk exposure and enhance Enterprise counterparty 

risk controls. 

• Strengthen risk management capabilities in identifying, assessing, controlling, 

monitoring, and reporting on climate risk and incorporating these capabilities into the 

overall Enterprise risk framework. 

• Maintain ability to respond to operational events without significant disruption to the 

primary or secondary mortgage market. 

• Maintain liquidity at levels required by FHFA and sufficient to sustain Enterprise 

operations through severe stress events. 

• Continue to develop the pricing framework to maintain support for core mission singlefamily borrowers, ensure a level playing field for small and large sellers, foster capital 

accumulation, and achieve viable returns on capital. 

Transfer a meaningful amount of credit risk to private investors in a commercially 

reasonable and safe and sound manner, reducing risk to taxpayers. 

Ensure CSS operates in a safe and sound manner in support of Enterprise securitization 

activities. 

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2023 Scorecard 

APPENDIX A: MULTIFAMILY DEFINITIONS 

1. Market share target and review of market size 

The 2023 Scorecard establishes a $75 billion cap on the multifamily purchase volume of each 

Enterprise, for a total of $150 billion and applicable for calendar year 2023. Within this cap, 

certain loans in affordable and underserved market segments are considered “mission-driven.” 

The 2023 Scorecard requires that a minimum of 50 percent of Enterprise multifamily loan 

purchases be mission-driven in accordance with the definitions herein. FHFA anticipates the $75 

billion cap to be appropriate given current market forecasts; however, FHFA will continue to 

review its estimates of market size and mission-driven minimum requirements throughout the 

year. To prevent market disruption, if FHFA determines that the actual size of the 2023 market is 

smaller than was initially projected, FHFA will not reduce the caps. 

The following sections explain how FHFA will treat mission-driven loans for purposes of the 

2023 Scorecard. 

2. Loans on targeted affordable housing properties 

Targeted affordable housing loans are loans to properties encumbered by a regulatory agreement 

or a recorded use restriction under which all or a portion of the units are restricted for occupancy 

by tenants with limited incomes and which restrict the rents that can be charged for those units. 

FHFA will classify as mission-driven a proportionate amount of the loan for properties in the 

targeted affordable category, depending on the percentage of units that are restricted by a 

regulatory agreement or recorded use restriction. FHFA will classify as mission-driven 50 

percent of the loan amount if the percentage of restricted units is less than 50 percent of the total 

units in a project, and 100 percent of the loan amount if the percentage of restricted units is equal 

to or more than 50 percent. 

The following are examples of loans on targeted affordable housing properties that FHFA will 

classify as mission-driven: 

• Loans on properties subsidized by the Low-Income Housing Tax Credit (LIHTC) program, 

which limits tenant incomes at 60 percent of area median income (AMI) or below; 

• Loans on properties developed under state or local inclusionary zoning, real estate tax 

abatement, loan or similar programs, where the property owner has agreed to: a) restrict a 

portion of the units for occupancy by tenants with limited incomes in accordance with the 

requirements of the state or local program and restrict the rents that can be charged for those 

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2023 Scorecard 

units at rents affordable to those tenants; and b) enforce these restrictions through a 

regulatory agreement or recorded use restriction; 

• Loans on properties covered by a Section 8 Housing Assistance Payment contract where the 

contract limits tenant incomes to 80 percent of AMI or below. FHFA will not consider a unit 

that is occupied by a Section 8 certificate or voucher holder as a targeted affordable housing 

unit unless there is also a contract, a regulatory agreement, or a recorded use restriction; and 

• Loans on properties where a Public Housing Authority (PHA), or a nonprofit development 

affiliate of a PHA, is the borrower, and where the regulatory agreement or recorded use 

restriction restricts all or a portion of the units for occupancy by tenants with limited incomes 

and/or restricts the rents that can be charged for those units. 

On a case-by-case basis, FHFA will consider Enterprise requests to classify other loans as 

mission-driven that meet affordable housing and mission goals but do not meet the exact 

definition of targeted affordable housing. Requests may be submitted for consideration only after 

meeting with FHFA to discuss the request. 

3. Loans to preserve affordability at workforce housing properties 

Loans to preserve affordability at workforce housing properties may be classified as missiondriven if the property has units that are subject to either rent or income restrictions codified in 

loan agreements. FHFA will classify as mission-driven units where the loan agreements require a 

sponsor to preserve affordability at the “other affordable” market levels outlined below or that 

adhere to the standard of a state or local housing affordability initiative, for at least 10 years or 

the term of the loan. FHFA will classify as mission-driven 50 percent of the loan amount if the 

percentage of restricted units is less than 50 percent of the total units in a project, and 100 

percent of the loan amount if the percentage of restricted units is equal to or more than 50 

percent. 

4. Loans on other affordable units 

FHFA will classify as mission-driven units whose rents are affordable to tenants at various 

income thresholds but that are not subject to a regulatory agreement or recorded use restriction in 

market-rate properties, 5-50 unit properties (small multifamily properties), and seniors housing. 

FHFA will count as mission-driven, the pro rata portion of the loan amount based on the 

percentage of units with affordable, unsubsidized/market rents, as described below. 

a. Loans on affordable units in standard markets 

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Standard markets are those that are not located in designated cost-burdened or very costburdened renter markets. For properties located in these markets, the income threshold 

for affordability is 80 percent of AMI or below. 

b. Loans on affordable units in cost-burdened or very cost-burdened renter markets

In cost-burdened renter markets as designated by FHFA, the income threshold for

affordability is 100 percent of AMI or below. In very cost-burdened renter markets as

designated by FHFA, the income threshold for affordability is 120 percent of AMI or

below.

5. Loans on properties located in rural areas 

Rural areas are those areas designated as such in the Duty to Serve regulation. FHFA will 

classify as mission-driven, the pro rata portion of the loan amount based on the percentage of 

units affordable at 100 percent of AMI or below. 

6. Manufactured housing community blanket loans

Loans to manufactured housing communities are blanket loans secured by the land and the rental 

pads. FHFA will classify as mission-driven the share of the loan amount of a manufactured 

housing community blanket loan that reflects the share that receives credit under the Duty to 

Serve regulation.1 

FHFA strongly encourages the adoption of tenant pad lease protections that meet or exceed those 

listed in the Duty to Serve regulation in all manufactured housing communities. 

7. Loans to finance energy or water efficiency improvements

Loans to finance energy or water efficiency improvements are loans funded by the Enterprises

under their own specialized financing programs for this purpose. For loans under the Fannie Mae

Green Rewards and Freddie Mac Green Up and Green Up Plus loan programs, 50 percent of the

loan amount will be classified as mission-driven if at least 20 percent but less than 50 percent of

1 Methodology for calculating manufactured housing community blanket loan mission-driven classification 

described in FHFA memo dated February 22, 2022: Revisions to March 18, 2021 Memorandum on Counting 

Methodology and Reporting Requirements for Manufactured Housing Communities with Tenant Pad Lease 

Protections. 

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the unit rents are affordable at or below 80 percent of AMI, and 100 percent of the loan amount 

if the percentage of affordable units is equal to or more than 50 percent. 

The renovations under the program (including subsequent program enhancements, as approved 

by FHFA) must project a minimum 15 percent reduction in annual whole property energy 

consumption and a minimum 15 percent reduction in annual whole property water and/or energy 

consumption. (Thus, a property projecting 30 percent energy consumption reduction would 

qualify for mission-driven credit, as would a property projecting 15 percent energy and 15 

percent water consumption reduction, or 20 percent energy and 10 percent water consumption 

reduction.) 

In addition, prior to Enterprise purchase, all Fannie Mae Green Rewards and Freddie Mac Green 

Up and Green Up Plus transactions must have a third-party data collection firm engaged for 

ongoing data collection for the life of the loan to receive mission-driven credit. This third-party 

firm can be funded by the borrower, the lender, or the Enterprise. FHFA will require specific 

data elements on all transactions where energy or water efficiency improvements are made for 

both Enterprises to determine the effectiveness of the programs in achieving policy outcomes, on 

an annual basis. 

For loans funded under the Fannie Mae Green Building Certification program or the Freddie 

Mac Green Certified program, FHFA will classify as mission-driven 50 percent of the loan 

amount if at least 20 percent but less than 50 percent of the unit rents are affordable at or below 

80 percent of AMI, and classify 100 percent of the loan amount if the percentage of affordable 

units is equal to or more than 50 percent. 

8. Other Scorecard requirements 

For purposes of reporting on loan and commitment activity under the 2023 caps, the Enterprises 

must: a) use the definitions for determining unit affordability of seniors housing assisted living 

units, co-op units, and shared living arrangements, including student housing, that are included in 

the housing goals regulation at 12 CFR 1282.1; b) use affordability data as of the loan 

acquisition date; c) report monthly to FHFA on their acquisition and commitment volumes using 

a reporting format defined by FHFA; and d) report quarterly on their acquisition volumes under 

the caps including detail on mission-driven loan purchases using a reporting format to be 

determined by FHFA. 

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