Equitable Housing Finance Plan

FREDDIE MAC

Our Commitment to Making Home Possible Equitably

April 2023
SECTION 1: Introduction ���������������������������������������������������������������������������������������������������������������1

SECTION 2: Plan Overview����������������������������������������������������������������������������������������������������������� 2

SECTION 3: Special Purpose Credit Programs ��������������������������������������������������������������������������������� 4

3.1: Purchase Mortgages Through Special Purpose Credit Programs (SPCPs) .............................................................. 5

3.2: Pricing: Single-Family Loan-Level Price Adjustments.......................................................................................... 6

3.3: Mortgage Insurance Cost Reduction ............................................................................................................... 6

3.4: Title Insurance Cost Reduction ....................................................................................................................... 6

3.5: Reserve Funds .............................................................................................................................. 7

3.6: Servicing for Sustainability (Single-Family) ....................................................................................................... 8

SECTION 4: Targeted Outreach and Interventions ��������������������������������������������������������������������������� 9

4.1: Promote Down Payment Assistance Tools with Industry Partners Serving Black and Latino Communities ..................10

4.2: Fair Servicing Analysis .............................................................................................................................. 11

4.3: Finance Housing for Persons with Disabilities ..................................................................................................12

4.4: Provide Liquidity to Permanent Supportive Housing for Persons Who Formerly Experienced Homelessness ............13

4.5: Improve the Quality of Single-Family Homes in Traditionally Underserved Black and Latino Communities ...............13

4.6: Expand the Develop the Developer Academy Program ....................................................................................15

4.7: Social Bond Issuance (Single-Family) ..............................................................................................................16

4.8: Increase Opportunities for Diverse and Emerging Multifamily Borrowers ............................................................17

4.9: Affirmative Outreach and Insights ..................................................................................................................18

SECTION 5: Broad Interventions To Address Systemic Barriers To Equitable Housing Conclusion�����������19

5.1: Improve Fairness in Credit Assessment .......................................................................................................... 20

5.2: Improve Fairness in Underwriting ..................................................................................................................21

Table of Contents

Implementation of the activities and objectives 

in Freddie Mac’s Equitable Housing Finance 

Plan may be subject to change based on 

factors including FHFA review for compliance 

with Freddie Mac’s statutory charter, specific 

FHFA approval requirements and safety 

and soundness standards, FHFA guidance 

and directives, regulatory requirements, 

Senior Preferred Stock Purchase Agreement 

obligations and adverse market or economic 

conditions, as applicable.

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE
5.3: Valuation Modernization and Equity ............................................................................................................. 22

5.4: Provide Capital for Very Small Multifamily Properties by Expanding “Linked Loan” Parameters ............................. 25

5.5: Support Renter Resource Organizations ........................................................................................................ 26

5.6: Develop Multifamily Correspondent Lender Program for Community Development Financial Institutions,

Minority Depository Institutions and Small Lenders ......................................................................................... 27

5.7: Leverage Forward Commitments to Facilitate Ground-Up Construction and Adaptive Reuse of Affordable and

Workforce Rental Housing for Individuals and Families ................................................................................... 28

5.8: Rehabilitate Affordable Rental Housing ......................................................................................................... 28

5.9: Explore and Implement Methods to Preserve At-Risk Affordable Housing through Freddie Mac

Affordability Restrictions ............................................................................................................................. 30

5.10: Analyze Low-Income Housing Tax Credit Properties at Risk of Lost Affordability..................................................31

5.11: Financial Empowerment for Renters: Credit Building, CreditSmart® and Opportunity Building Features ................ 32

5.12: Identify Opportunities to Support Market Adoption of Enhanced Baseline Tenant Protections ............................ 33

5.13: Analyze Housing Choice Voucher Availability, Efficacy and Acceptance for Renters and Homeowners ................. 34

5.14: Reform the Single-Family Rental Market with a Focus on Equity, Affordability and Sustainability ........................... 35

SECTION 6: Conclusion�������������������������������������������������������������������������������������������������������������� 36

SECTION 7: Appendix ��������������������������������������������������������������������������������������������������������������� 38

7.1: Consumer Research Interviews & Surveys ....................................................................................................... 39

7.2: 2023 Updates to 2022 Equitable Housing Finance Plan (EHFP) ........................................................................ 39

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE
SEC TION 1

Introduction

In 2022, Freddie Mac unveiled its first Equitable Housing Finance Plan (Plan), an 

ambitious set of initiatives to help advance equity, affordability and sustainability for more 

families in traditionally underserved communities. The Plan was designed to underscore 

the company’s commitment to work across the industry to create opportunities for all 

families to access quality affordable housing and achieve the American Dream.

Since that time, we have made meaningful progress in implementing the Plan, as we 

describe in our 2022 Equitable Housing Finance Plan Performance Report. 

For example:

• We launched programs that helped renters and borrowers improve their credit 

scores and factor a history of on-time rent payments into our loan purchase decisions.

• We are using Special Purpose Credit Programs to make homeownership possible for 

those looking to buy in underserved communities. 

• We introduced innovations to reach those who may not have qualified for 

homeownership with traditional underwriting, such as assessments of bank data that 

quickly identify assets, income, employment and a history of positive monthly cash 

flow activity. 

• We took meaningful action to develop, expand and enhance products that help 

increase the supply of affordable homes and rentals.

• And, we launched multiple initiatives to increase diversity across the housing

finance industry. 

All of this helped us finance approximately one million home purchases, with more than 

half of the owner-occupied homes affordable to low- and moderate-income families. 

We made home possible for 440,000 first-time homebuyers. We also financed tens 

of thousands of loans through our Home Possible program, which helps low-income 

– Michael J. DeVito, CE

homebuyers by requiring a down payment as low as three percent. Nearly 30 percent of 

Home Possible loans we purchased last year supported majority-minority communities. 

We also financed 695,000 rental units, 96 percent of which were affordable to low- and 

moderate-income families.

While we have made important progress, we know there is much more to do. Through 

our 2023 Equitable Housing Finance Plan actions, we seek to expand the work we 

started last year to give families in all communities the chance to have a quality, affordable 

and sustainable place to call “home.” We are committed to addressing disparities in 

homeownership and increasing generational wealth building for communities of color. 

We remain focused on removing barriers and driving change through education, 

mortgage products and other business solutions. 

Our Equitable Housing Finance Plan is only one part of a comprehensive and everevolving strategy for Freddie Mac to bring greater access to homeownership and 

affordable rental housing. We put our mission at the center of everything we do. That 

includes continuing to promote equity across all markets and dimensions, including race, 

ethnicity, sexual orientation and accessibility. 

We will continually strive to deliver on our Plan and our broader efforts to help make 

home possible for all families. We look forward to reporting back on our progress in

early 2024.

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 1
SECTION 2

Plan Overview In our Equitable Housing Finance Plan, we take both a direct 

approach, through targeted business initiatives, including special 

purpose credit programs, and a systemic approach, through broader 

efforts such as helping to address the affordable housing supply 

shortage and creating opportunities for renters. We must pursue 

both approaches to effectively address housing cost burden and 

limitations in housing choice and opportunity disproportionately 

experienced by Black and Latino renters and homeowners. 
Plan Overview

Address the Homeownership Gap

Freddie Mac will address the homeownership 

gap for Black and Latino families through 

responsible and impactful initiatives that 

expand access to credit.

1 Address Systemic Underinvestment 

within Formerly Redlined Areas

We will strengthen support for underserved 

renters and borrowers by expanding financing 

for affordable housing developers and helping 

Community Development Financial Institutions 

(CDFI), minority depository institutions (MDI) and 

smaller banks with improved access to capital.

2 Increase and Improve Quality of

Affordable Housing Supply

Freddie Mac plans to leverage private, global 

investments to create and preserve vital affordable 

housing. These efforts will consider the need to 

preserve—and not displace—the communities 

intended to benefit from new investments.

3

Increase Opportunities for Renters

Freddie Mac will increase opportunities for renters 

at multifamily properties and from within renters’ 

communities. Efforts will focus on mainstreaming 

financial empowerment, wealth building opportunities, 

tenant protections and resident services for renters 

within Freddie Mac-financed rental communities and 

ultimately the multifamily industry at large.

4 Reduce Disparities in the Black and

Latino Community Experience 

We commit to (re)building trust in the housing ecosystem 

by inviting the experiences of Black and Latino communities 

into our approach and demonstrating our commitment 

through action. For example, we will increase opportunities 

and access to capital for diverse and emerging multifamily 

developers in order to increase wealth-building 

opportunities and enhance the ability for people to invest 

in and grow their communities. We will continue to set 

standards in both renter support and renter protections.

5

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 3
SECTION 3

Special Purpose 

Credit Programs

This section demonstrates our targeted approach through special 

purpose credit programs that are necessary to address mortgage 

lending barriers and eliminate disparities facing Black and Latino 

homebuyers and homeowners.
3.1: Purchase Mortgages Through Special Purpose 

Credit Programs (SPCPs)

Freddie Mac is actively pursuing the purchase of loans originated through SPCPs, both 

lender SPCPs and Freddie Mac’s own designed SPCPs. In addition to purchasing SPCP 

loans and designing our own SPCP program, we commit to partnering with lenders and 

community organizations through targeted marketing and outreach to ensure that SPCPs 

successfully increase homeownership for Black and Latino families.

Action 1: Purchase Loans Originated Through Lenders’ SPCPs 

There is a growing interest among lenders in originating loans under their own SPCPs 

and selling the loans to Freddie Mac. We plan to purchase loans originated through 

these lender SPCPs beginning in 2023 and have instituted a review and approval process 

to ensure these programs meet our established credit standards.

Action 2: Offer Freddie Mac SPCP 

Freddie Mac launched our first SPCP in 2022 to address the greatest barrier to 

homeownership: gathering sufficient funds to close a mortgage transaction. We will 

continue to develop and implement SPCPs that offer some or all the following benefits: 

(a) down payment assistance, (b) improved pricing/reduced fees, (c) expanded 

underwriting, (d) reserve funds for borrower hardship and (e) expanded loan servicing 

support to an identified class of borrowers with special social needs. 

Period Goals 

Year 1 – 2022 • Stand up a framework for SPCPs that will include policy development, 

analytics, market outreach, internal and external governance and 

publication of Single-Family Seller/Servicer Guide (Guide) updates,

if necessary.

• Develop (and launch) robust marketing plan to support any Guide 

updates for the SPCP in 2022.

• Develop robust training resources for Sellers to support Guide updates 

for the SPCP in 2022.

• Develop baseline projection of SPCP purchase volume

for 2023.

Year 2 – 2023 • Provide liquidity for SPCP loans originated by at least 10 lenders, with a 

commitment to purchase up to 10,000 loans originated in 2023.*

o Promote adoption of Freddie Mac’s designed SPCP among lenders.

o Purchase loans originated through lenders’ SPCPs.

• Explore new product offerings and/or SPCP expansion based on 

lessons learned. 

*SPCP loan originations in 2023 under this commitment could be 

delivered to Freddie Mac in 2024.

Year 3 – 2024 • Provide liquidity for SPCP loans through purchasing SPCP loans 

originated by at least 10 lenders.

o Purchase loans originated through lenders’ SPCPs.

o Promote adoption of Freddie Mac’s designed SPCP among lenders.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Increase and Improve Quality of 

Affordable Housing Supply

Reduce Disparities in the Black and

Latino Community Experience 

Increase Opportunities 

for Renters

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 5
3.2: Pricing: Single-Family Loan-Level Price Adjustments 

Freddie Mac evaluated changes to our loan-level price adjustment (LLPA) structure, 

resulting in the elimination of LLPAs for certain borrowers and affordable mortgage 

products, to help us achieve our equity objectives while ensuring we operate in a safe 

and sound manner.1

3.3: Mortgage Insurance Cost Reduction

Freddie Mac will continue working with mortgage insurers, their trade association and 

other industry stakeholders to look for ways to lower mortgage costs.

3.4: Title Insurance Cost Reduction

Freddie Mac will continue working with title insurers, their trade association and other 

industry stakeholders to look for ways to lower mortgage costs. 

1 As announced in Single-Family Seller/Servicer Guide Bulletins 2022-22 and 2023-1.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Increase and Improve Quality of 

Affordable Housing Supply

Reduce Disparities in the Black and

Latino Community Experience 

Increase Opportunities 

for Renters

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 6
3.5: Reserve Funds

Access to funds (e.g., reserve funds or alternative access to liquidity) may support 

borrower financial stability and credit preservation during liquidity shocks, mitigate 

mortgage default and/or enable servicer intervention before a missed payment. 

Freddie Mac is assessing different reserve fund structures and funding alternatives to 

provide borrowers access to liquidity to help them sustain homeownership through 

qualified borrower liquidity shocks. Under this effort, we may also assess the feasibility of 

leveraging reserve funds or alternative access to liquidity to address hardships related to 

climate-induced and/or climate-resiliency property repair and maintenance expenses. 

We may consider providing this funding alternative through an SPCP or other Freddie 

Mac offerings.

Period  Goals  

Year 1 – 2022 • Establish a viable framework for a reserve fund(s).

Year 2 – 2023 • Complete preliminary assessment of implementation feasibility by

year end.

Year 3 – 2024 • Begin implementation, pending approval in Year 2. 

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Increase and Improve Quality of 

Affordable Housing Supply

Reduce Disparities in the Black and

Latino Community Experience 

Increase Opportunities 

for Renters

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 7
Action 2: Loss Mitigation Borrower Outreach, Education and Counseling

Freddie Mac plans to analyze its servicing policies to help improve outcomes for loans 

originated to underserved communities through potential policy changes, expanded 

outreach and counseling, educational materials, borrower education and other servicingrelated activities.

Period  Goals  

Year 1 – 2022  • Identify tangible servicing improvements for potential implementation 

through Special Servicing Framework. This includes working with a 

single servicer to build borrower rapport and reach out to borrowers 

within 10 days of missed payment to proactively find a resolution.

• Complete analysis to understand automatic payment deferral benefits 

for defined eligible population.

• Finalize decision on viability for Special Servicing Framework and 

automatic payment deferral approach.

Year 2 – 2023  • Launch at least two test-and-learns on loan populations within the 

Special Servicing Framework to test the approach and identify 

opportunities for improved performance.

• Continue development of potential borrower counseling strategies.

• Provide at least three enhancements to borrower-facing educational 

materials on FreddieMac.com to provide additional help for borrowers 

experiencing hardship and seeking loss mitigation options.

• Contribute to internal working group setup to examine alternatives 

to FICO credit scoring, including those related to loss-mitigation 

evaluations.

Year 3 – 2024  • Continue to identify opportunities to improve the Special Servicing 

Framework and to integrate it into future equitable housing offerings. 

3.6: Servicing for Sustainability (Single-Family) 

Freddie Mac is reevaluating its servicing policies to improve borrower outcomes, 

particularly for Black and Latino homeowners.

Action 1: Special Servicing Framework

Freddie Mac developed a Special Servicing Framework, a strategy that applies a hightouch servicing and monitoring approach to reduce expected default rates for certain 

targeted loan populations within our portfolio. It includes oversight of loan servicing, 

collections, call center and default management operations, all designed to help 

borrowers successfully meet their loan obligations and sustain homeownership. This 

framework was developed for use with future offerings, including SPCPs, to optimize 

homeownership retention.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Increase and Improve Quality of 

Affordable Housing Supply

Reduce Disparities in the Black and

Latino Community Experience 

Increase Opportunities 

for Renters

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 8
SECTION 4

Targeted 

Outreach and 

Interventions 

This section demonstrates our targeted outreach and intervention solutions 

that address the homeownership gap, increase and improve the quality of 

affordable housing supply for Black and Latino homeowners and renters 

and address systemic underinvestment within formerly redlined areas. 
4.1: Promote Down Payment Assistance Tools with 

Industry Partners Serving Black and Latino Communities

Freddie Mac is addressing the need for down payment assistance (DPA) for underserved 

Black and Latino borrowers by developing a digital-platform DPA tool—DPA OneSM—to 

maximize down payment assistance program utilization nationwide and to increase 

incremental originations by seamlessly connecting and matching down payment 

assistance programs, lenders, counselors and borrowers. The tool helps us continue 

efforts to drive down payment assistance utilization, standardization and funding. 

We continue to promote DPA One with industry partners serving Black and Latino 

communities—affinity trade associations, nonprofit housing organizations, housing 

counselors, housing advocates and consumer groups.

Period Goals

Year 1 – 2022 • Incorporate 45 state Housing Finance Agencies’ down payment 

assistance programs into the tool.

• Incorporate 20 select high-volume local and municipal nationwide 

down payment assistance provider programs into the tool.

• Launch loan officer and down payment assistance provider functionality 

in market by year-end 2022.

• Raise awareness of the tool to 15 national organizations that serve Black 

and Latino communities. 

Year 2 – 2023 • Expand utilization of DPA One by at least 10 housing counseling 

agencies that serve targeted communities. 

• Continue to expand standardized subordinate lien documents and 

standardized data for 19 states.

• Actively explore market opportunity for a DPA common offering 

through consultation with at least 12 industry organizations, including 

lenders, counseling agencies and housing finance agencies, and 

develop a recommendation on the viability of a common offering.

Year 3 – 2024 • Expand utilization of DPA One by at least 10 additional housing 

counseling agencies. 

• Pending 2023 recommendation to proceed, begin development of 

common DPA offering.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Increase and Improve Quality of 

Affordable Housing Supply

Reduce Disparities in the Black and

Latino Community Experience 

Increase Opportunities 

for Renters

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 10
4.2: Fair Servicing Analysis

Freddie Mac has established a routine analytics process to monitor loss mitigation 

outcomes. Insights derived from this fair servicing analysis may inform the design of our 

special servicing strategy. Our fair servicing analysis will assess whether and to what 

extent there exist disparities or gaps in loss mitigation outcomes after controlling for 

appropriate factors. We began this work in 2022 by identifying metrics and establishing 

an initial template for fair servicing monitoring.

Period Goals 

Year 1 – 2022 • None (to begin in Year 2).

Year 2 – 2023 • Execute fair servicing monitoring and analysis quarterly.

• Begin to develop strategies to address any identified gaps.

Year 3 – 2024 • Continue execution of fair servicing monitoring.

• As applicable, continue to develop and implement strategies to 

address identified gaps. 

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 11
4.3: Finance Housing for Persons with Disabilities 

Freddie Mac will provide additional liquidity for loans that support access to housing 

for persons with Intellectual and Developmental Disabilities (IDD) and other disabilities. 

Through this work, we will seek out viable and scalable development model innovations, 

including those with disability-inclusive design standards. 

Freddie Mac has a demonstrated history of providing liquidity to support housing for 

persons with disabilities, including a focus on community-based, small-group living 

environments called HIDD (Housing for IDD). We will build on these efforts with a 

focus on recent innovations like mixed-ability apartment communities that can provide 

supportive housing with intentional design features to persons with a wider range

of disabilities.

Period Goals

Year 1 – 2022 • Complete at least one transaction. 

Year 2 – 2023 • Complete at least two transactions.

Year 3 – 2024 • Complete at least three transactions. 

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 12
4.4: Provide Liquidity to Permanent Supportive Housing 

for Persons Who Formerly Experienced Homelessness

Freddie Mac will work in phases to scale nonprofit-based models that provide supportive 

affordable and workforce housing for persons who formerly experienced homelessness. 

Our research identified 10 nonprofit organizations with innovative programs and key 

markets with need for additional permanent supportive housing units. These nonprofits 

are positioned throughout the country, including in California, Texas, New York, 

Washington and Florida. Each offers a different model that integrates housing with 

supportive services for target populations, leveraging a combination of public and 

private funding sources.

Leveraging that research, Freddie Mac will work with nonprofit organizations to craft 

market-adoptable engagement parameters that would encourage multifamily property 

owners to advance supportive housing. Based on these exploratory results, Freddie Mac 

will seek to roll out parameters that can be used in conjunction with loan offerings. 

Freddie Mac has worked with localities to provide financing for long-term housing 

with rental assistance and services supporting persons who formerly experienced 

homelessness (Permanent Supportive Housing) in markets across the country. We have 

also had success investing Low Income Housing Tax Credit (LIHTC) equity in supportive 

housing properties. Through this work, we determined that supportive housing-focused 

nonprofits have a unique opportunity to provide solutions for persons who formerly 

experienced homelessness due to their direct connections with communities and 

residents, coupled with their ability to engage with affordable-housing developers.

Period Goals

Year 1 – 2022 • Conduct market research to identify collaboration opportunities. 

Year 2 – 2023 • Identify standards for engagement between nonprofits and borrowers.

Year 3 – 2024 • Depending on prior year’s exploration, roll out engagement parameters 

that can be leveraged with Freddie Mac loan offerings.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 13
4.5: Improve the Quality of Single-Family Homes in 

Traditionally Underserved Black and Latino Communities

Affordable financing options and technical assistance can help Black and Latino 

homeowners renovate and remain in their homes. However, growing competition over 

limited housing supply has impeded many Black and Latino households from accessing 

homeownership. We will leverage Freddie Mac’s leadership position in the industry to 

create financial tools that empower nonprofits and mission-driven developers to increase 

renovation and redevelopment activity in Black and Latino communities. Specifically, 

we will explore the growing use of the New Market Tax Credits as a source of financing 

toward the rehabilitation and creation of new affordable single-family housing supply.

Period Goals

Year 1 – 2022 • Complete a qualitative housing stock assessment and identify 

renovation needs and types of property improvements that can help 

improve the quality of housing in historically underserved Black and 

Latino communities.

• Establish new partnership with two to five landbanks. 

• Develop product enhancement recommendations based on the 

qualitative housing stock assessment.

Year 2 – 2023 • Evaluate the feasibility of establishing a New Market Tax Credit equity 

platform to purchase New Market Tax Credits tied to the creation of 

for-sale affordable housing. 

• Collaborate with selected vacant property stewards to support the 

redevelopment of 75 vacant properties as affordable and/or resilient 

housing stock, proactively targeting formerly redlined areas in 

historically underserved Black and Latino communities.

Year 3 – 2024 • Support the redevelopment of additional vacant properties as 

affordable homeownership units in Black and Latino communities. 

• Monitor and report.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 14
4.6: Expand the Develop the Developer Academy 

Program

Freddie Mac will extend its Develop the DeveloperSM Academy (DTDA) curriculum to

5+-unit buildings in traditionally underserved and minority communities, including those 

that continue to be impacted by the long-term effects of redlining. Launched in 2020 

for 1- to 4-unit properties, DTDA provides education and financing opportunities for 

emerging and traditionally underserved developers, including Black, indigenous,

people of color and female developers whose focus is on building wealth in their

home communities.

We will select one target market per year to provide localized emerging developer 

education and support in collaboration with industry professionals who can provide 

funding opportunities and advice.

Period Goals

Year 1 – 2022 • Expand curriculum to include 5+-unit properties.

• Identify initial market to roll out expanded multifamily program.

Year 2 – 2023 • Identify and launch in a new market. 

• Enroll 30 developers in the DTDA. 

Year 3 – 2024 • Identify and launch in a new market. 

• Enroll 45 developers in the DTDA.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 15
4.7: Social Bond Issuance (Single-Family)

Freddie Mac seeks to meet rising market demand for mortgage-backed securities (MBS) 

that satisfy investor mandates for social investing, particularly in underserved markets. 

We began with issuance based on current affordable products that have embedded 

borrower benefits and for which securities disclosures are available. Following the 

social bond principles of the widely used International Capital Market Association 

(ICMA) standards, Freddie Mac published our Single-Family Social MBS and Corporate 

Social Debt Bonds Framework and Sustainalytics Second Party Opinion in preparation 

for the transition from issuing Affordable Bonds to social bonds in 2023, which will be 

accompanied by social index disclosures.

Longer-Term Vision

Freddie Mac’s longer-term vision to drive additional borrower benefit is to build the 

market through demand from social bond investors. Market demand can incentivize 

lenders to originate more loans that meet investors’ social bond needs. We would expect 

to leverage any additional Freddie Mac origination products with embedded benefits for 

underserved borrowers.

Period Goals

Year 1 – 2022 • Transition from issuing Affordable Bonds to issuing social bonds. 

• Issue $3 billion in affordable housing bonds.

Year 2 – 2023 • Work with FHFA and Fannie Mae on Social Bond Request for 

Information (RFI) and implement market feedback, as appropriate, 

including new disclosure, social bond definitions and a plan for issuing 

labeled social bonds.

Year 3 – 2024 • Commence planning for single-family social bond impact report 

(covering 2023 issuance).

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 16
4.8: Increase Opportunities for Diverse and Emerging 

Multifamily Borrowers

Through intentional outreach, including surveys and targeted conversations, Freddie 

Mac has developed a three-pronged approach to increase opportunities for diverse and 

emerging multifamily borrowers: 

1. Help close the knowledge gap by expanding our Develop the Developer 

Academy and developing and publishing resources that increase borrowers’ 

understanding of how to best engage with Freddie Mac and its network of 

lenders. 

2. Help close the relationship gap by (a) co-hosting networking events and 

opportunities for knowledge sharing, and (b) establishing and implementing 

an approach that sets expectations for lenders and creates a stronger path for 

engagement with diverse and emerging borrowers. 

3. Help close the financing gap by developing a correspondent lender program, 

expanding current products that are most likely to be used by diverse and 

emerging borrowers and evaluating and establishing standards for credit 

enhancement and guarantors to enable borrowers and their partners to close 

the net worth and liquidity gaps.

Period Goals

Year 1 – 2022 Closing the Knowledge Gap

• Enhance our website to improve guidance for borrowers (particularly 

emerging and diverse borrowers) on how to best engage with Freddie 

Mac and its lenders.

• See Develop the Developer Academy goals above.

Closing the Relationship Gap

• Host at least two networking events to promote partnership and 

connections. 

Closing the Financing Gap

• See Expanding Linked Loan Parameters and

Reform the Single-Family Rental Market goals.

• See Develop Multifamily Correspondent Lender Program goals.

Year 2 – 2023 Closing the Knowledge Gap

• Continue to build upon prior year’s work by enhancing online resources 

and tools for diverse and emerging borrowers.

• See Develop the Developer Academy goals above.

Closing the Relationship Gap

• Host at least two networking events to promote partnership and 

connections. 

Closing the Financing Gap

• See Develop Multifamily Correspondent Lender Program and

Reform the Single-Family Rental Market goals.

• Identify credit enhancement and guarantor standards.

Year 3 – 2024 Closing the Knowledge Gap

• See Develop the Developer Academy goals above. 

Closing the Relationship Gap

• Host at least two networking events to promote partnership and 

connections. 

Closing the Financing Gap

• Implement standards identified in 2023.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 17
4.9: Affirmative Outreach and Insights

Our three-year affirmative outreach and insights strategy is designed to help advance 

equity in housing finance and help decrease barriers to sustainable housing opportunities 

for renters, buyers and homeowners. Freddie Mac plans to raise awareness, increase 

understanding and educate consumers through financial capability tools and marketing 

of our products and services. We will promote product offerings to industry partners and 

align with strategic clients and community organizations to promote insights, data and 

subject matter expertise.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

Period Goals

Year 1 – 2022 • Continue outreach campaigns on housing equity.

• Launch consumer-engagement and education programs, events and

resources.

• Measure those campaigns via uniform reporting.

Year 2 – 2023 • Reach 21 million Black and Latino renters, buyers and owners via paid 

media throughout the year to educate and engage consumers on 

financial education, the homebuying process and available tools to 

help them succeed.

• Educate mortgage loan officers on how to better connect with 

underserved minority borrowers by launching and promoting our loan 

officer training, A Seat at the Closing Table, with expected reach of 3 

million impressions. 

• Integrate sustainability and climate impact content into Freddie Mac’s 

borrower and renter-facing educational offerings, training programs 

and other consumer-facing materials.

• Launch Freddie Mac CreditSmart® financial literacy curriculum in 

Spanish, accompanied by in-language awareness and engagement 

marketing tactics to reach a larger portion of the Latino market.

• Promote Freddie Mac products, programs and offerings that support 

Black, Latino and other minority communities through podcasts, 

sponsored content, social media and paid advertising.

• Partner with various industry associations, housing advocacy groups, 

community groups, Historically Black Colleges and Universities 

(HBCUs), faith-based groups, etc., to engage and educate 

underserved communities on how to obtain and sustain 

homeownership.

Year 3 – 2024 • Further refine marketing outreach in alignment with key focus areas and 

tactics outlined in this plan.

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 18
SECTION 5

Broad Interventions to 

Address Systemic Barriers 

to Equitable Housing

This section outlines our approach to broadly addressing systemic 

barriers to equitable housing. It focuses on solutions that address the 

homeownership gap and systemic underinvestment in formerly redlined 

areas, increase and improve the quality of affordable housing supply and 

increase opportunities for renters.
5.1: Improve Fairness in Credit Assessment

Freddie Mac continues to make meaningful enhancements to Loan Product Advisor®

(LPASM), our automated underwriting system (AUS), to offer more predictive LPA model 

versions to help identify creditworthy borrowers that prior model versions might have 

missed. We believe that better, more sophisticated LPA models are central to a successful 

equitable housing finance strategy. Freddie Mac has been evaluating the potential to 

expand access to credit for historically underserved borrowers through use of alternative 

credit scores, as well as using alternative data (e.g., rent payment history) for credit 

assessments. This is especially meaningful for Black and Latino consumers, who are more 

likely to have thin credit files or no credit score at all.2

2 https://www.fdic.gov/analysis/household-survey/index.html

Period Goals

Year 1 – 2022 • Reduce disparities through implementation of a newer AUS version 

leveraging more advanced modeling techniques.

Year 2 – 2023 • Evaluate, analyze and implement an elimination or modification 

of existing business adjustments on top of LPA, while ensuring 

appropriate credit risk management.

• Finalize the development of the next iteration of LPA by evaluating 

model specification option(s), leveraging detailed credit attributes, 

including trended attributes, to replace third-party credit score(s) with 

implementation planned by end of 2024. 

• Continue research on the use of alternative credit data.

• Monitor Accept-rate disparities for Black and Latino

borrowers quarterly.

Year 3 – 2024 • Deploy new LPA model. 

• Continue analysis on viability of the use of trended and other

alternative data.

• Monitor Accept-rate disparities for Black and Latino borrowers.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 20
5.2: Improve Fairness in Underwriting

Many people in communities of color manage finances through cash transactions 

outside of the credit system, making it more difficult for potential borrowers to receive 

financing. Freddie Mac continues to analyze and incorporate into LPA information that 

demonstrates borrowers’ responsible financial behavior, including leveraging borrowers’ 

bank account transaction data and patterns to increase access to credit for

underserved borrowers.

Period Goals

Year 1 – 2022 • Analyze impact to Accept-rate gap for underrepresented borrowers.

Year 2 – 2023 • Expand eligible population of applications to move from Caution to 

Accept, potentially improving our Accept-rate gap.

• Perform fair lending impact analyses quarterly.

Year 3 – 2024 • Continue monitoring Accept rates for Black and Latino borrowers 

quarterly.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 21
5.3: Valuation Modernization and Equity

Freddie Mac will continue efforts to foster greater equity in single-family real estate 

appraisals and valuation, including supporting the recommendations in the

Property and Valuation Equity (PAVE) Action Plan.

Activity 1: Appraisal Industry Engagement

Freddie Mac will continue to champion appraisal and valuation equity concerns and 

solutions to ensure fair valuation and mitigate the potential for discrimination. Freddie 

Mac has partnered with The Appraisal Institute as a core sponsor of its Appraiser Diversity 

Initiative (ADI). Through ADI, we work with multiple industry participants to help increase 

diversity among residential appraisers.

We also collaborate with the Office of the Comptroller of the Currency’s (OCC) Project 

REACh and other industry stakeholders to address appraisal process improvements. 

Through this work, Freddie Mac is co-leading an appraisal valuation workstream and 

participating in several appraisal work groups with representatives from lenders and 

the OCC. Additionally, we are providing input to the Appraisal Foundation’s Appraisal 

Standards Board (ASB) and its Appraisal Qualification Board (AQB) with respect to 

establishing, improving and promulgating Uniform Standards of Professional

Appraisal Practice, as well as the qualification criteria and minimum education

required for new appraisers.

Period Goals

Year 1 – 2022 • Continue leadership in ADI, Project REACh, ASB and AQB. 

• Work with FHFA to identify and expedite implementation of prioritized 

valuation equity proposals. 

• Work with FHFA to identify additional research topics related to 

valuation equity and publish and broadly distribute such research.

Year 2 – 2023 • Continue commitment of 10 or more Freddie Mac employees to mentor 

and support as many as 20 diverse new appraisers through the ADI. 

• Host seven to nine outreach events/programs to recruit and mentor 

program participants, award 200 scholarships (qualifying/practical 

application experience hours), add five new sponsors and expand 

program focus to include the Latino homeownership journey. 

• Partner with ADI leadership to develop an optimal structure through 

which ADI will support program graduates. 

• Continue to support Project REACh by leading appraisal workstreams 

to improve industry consistency in the reconsideration of value process 

and appraisal equity support.

Year 3 – 2024 • Same as 2023. 

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 22
Activity 2: Appraisal Quality Monitoring

Freddie Mac’s research indicates gaps exist in appraisal results when comparing 

appraisals in minority census tracts to appraisals in non-minority census tracts, 

representing a potential for undervaluation in appraisal reports. We have enhanced 

Freddie Mac Loan Collateral Advisor®—our tool for appraisal report analysis—to detect 

undervaluation and will study the results. We also added rules to Loan Collateral Advisor 

to detect potentially discriminatory language in appraisal reports, enabling a feedback 

loop that directs appraisers to use fairer language. These efforts aim to reduce the 

number of appraisal reports with undervaluation or potentially discriminatory language, 

contributing to a fairer experience for consumers. 

Freddie Mac developed an Appraisal Quality Monitoring (AQM) framework and 

staffed an internal team leveraging Loan Collateral Advisor to identify, assess, monitor 

and mitigate risks such as those from appraisal gaps—when property appraisal value 

is less than contract price. The team leverages results from Loan Collateral Advisor to 

identify trends related to quality and/or equity concerns from individual appraisers. The 

framework includes a procedure for feedback communications to appraisers and lenders 

that identify and request changes to observed trends. 

Freddie Mac also plans to use results of this AQM framework to create industry 

communications (articles, webinars, conference appearances) to provide broad 

communication on the topic.

Period Goals

Year 1 – 2022 • Deploy Loan Collateral Advisor version with enhanced undervaluation 

detection capability.

• Define AQM framework, staffing and technology needs.

• Establish policies and procedures for AQM.

• Provide awareness, education and training to identified appraisers 

producing reports of inferior quality and/or reports with

disparate results.

Year 2 – 2023 • Deploy rules in Loan Collateral Advisor to detect unacceptable words/

phrases in appraisal reports and provide appropriate hard stops and/

or feedback messages to the lender. After implementation, the tool will 

review 100% of appraisal reports. 

• Send at least 1000 educational letters to appraisers.

Year 3 – 2024 • Monitor performance of undervaluation indicator.

• Increase appraiser awareness and accountability to produce appraisals 

in compliance with Freddie Mac requirements.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 23
Activity 3: Analyze and Address Potential Appraisal Disparities in

Multifamily Housing

Freddie Mac will research the potential existence and severity of appraisal inequalities 

for multifamily properties in communities or neighborhoods in which a high number of 

minority households reside.

The research will:

• Review background and existing research on this topic.

• Present data-driven findings on potential gaps in appraisal values.

• Discuss potential causes and solutions, depending on the nature of the issues 

identified.

Once published, we will convene market stakeholders to examine opportunities and 

develop a plan to address disparities in the multifamily industry appraisal process

and standards.

Period Goals 

Year 1 – 2022 • None (to begin in Year 2).

Year 2 – 2023 • Conduct and publish research.

Year 3 – 2024 • Develop a plan to address identified disparities.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 24
5.4: Provide Capital for Very Small Multifamily 

Properties by Expanding “Linked Loan” Parameters

We intend to expand our linked loan parameters to allow financing of noncontiguous 

2- to 4-unit rental properties. Today we allow 2- to 4-unit buildings, but they must be 

contiguous and of “like” quality to 5+-unit properties. Our expansion would include noncontiguous properties no more than three miles apart. This distance would allow for both 

consistent property management and flexibility for emerging and smaller developers to 

grow their portfolios and support their communities. Emerging developers would also 

benefit from our Develop the Developer Academy curriculum and other services funded 

through our community support investments described above and below.

Period Goals

Year 1 – 2022 • Publish updated program parameters.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 25
5.5: Support Renter Resource Organizations

Freddie Mac will provide financial support to established locally based Renter Resource 

Organizations (RROs) in targeted underserved areas that need more resources to (a) 

support underserved minority renters and/or (b) support underserved borrowers and 

property managers.

Renter Resource Organizations help foster consistent and straightforward access to 

tenant support services, which is of vital importance to helping people stay in their 

homes or ensuring rental units are in good repair. These organizations are on the 

front lines of assisting renters who face housing challenges, including those who are 

struggling to make rent payments or find affordable housing. They often assist renters 

as they seek affordable housing options and help with financial planning and education 

that can support a future move. RROs also offer directly or provide referrals for legal or 

financial aid and rental counseling. These organizations are often called on to support 

renters facing challenging life events or housing stability issues, including eviction. They 

can also support renters as they navigate-landlord tenant disputes, including by serving 

as a mediator.

Taken together, the services provided by RROs help support housing stability and 

as a result they foster greater community stability, which can be an important factor 

in measuring quality of life, increasing investment and addressing undervaluation in 

formerly redlined areas, racially or ethnically concentrated areas of poverty (R/ECAPs) 

and other underinvested communities. 

The RROs Freddie Mac supports will provide impact reports, detailing what services our 

funds were able to support for underserved tenants. The RROs will also facilitate detailed 

Freddie Mac consumer sentiment surveys that will allow us to further gauge both our 

impact and the needs of tenants. Freddie Mac will use our learnings from this experience 

to better direct efforts and resources and tailor tenant-focused loan offerings.

Period Goals

Year 1 – 2022 • Support at least four community organizations in varying

underserved markets.

• Launch website resource portal.

• Poll renters and borrowers in at least four distinct communities.

Year 2 – 2023 • Support at least four community organizations in varying

underserved markets.

• Poll renters and borrowers in at least four distinct communities.

Year 3 – 2024 • Support at least four community organizations in varying

underserved markets.

• Poll renters and borrowers in at least four distinct communities.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 26
5.6: Develop Multifamily Correspondent Lender 

Program for Community Development Financial 

Institutions, Minority Depository Institutions and

Small Lenders

To empower Community Development Financial Institutions (CDFIs), traditionally 

underserved minority lenders, minority depository institutions (MDIs), smaller 

regional banks and other small financial institutions (SFIs), Freddie Mac will develop 

a correspondent relationship program that leverages our existing multifamily lender 

network infrastructure.

Under this program, we will first identify lenders from our Optigo® network of multifamily 

lenders who are willing and able to support smaller lending institutions. We will then 

develop a framework of guidelines and standards that our Optigo lenders can use when 

interfacing with and supporting smaller lending institutions. In 2023, we will expect 

all Optigo lenders to pursue an agreement with one correspondent. We will assess 

the success of the program and refine the framework as we receive feedback from our 

Optigo lenders. 

As we work with our Optigo lenders to develop this correspondent lender program, 

we will continue to leverage our existing suite of seasoned and affordable loan pool 

offerings, as well as the new offerings described through our Plan, to provide liquidity to 

these institutions.

Period Goals 

Year 1 – 2022 • Leverage Optigo lenders to conduct research and outreach to potential 

correspondent lenders.

• Identify and engage at least one correspondent lender.

• Develop a framework for the correspondent lender program.

Year 2 – 2023 • Implement program requiring each Optigo lender to execute at least 

one correspondent agreement.

Year 3 – 2024 • Assess program and revise as appropriate.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 27
5.7: Leverage Forward Commitments to Facilitate 

Ground-Up Construction and Adaptive Reuse of 

Affordable and Workforce Rental Housing for

Individuals and Families

Freddie Mac will support the construction of new affordable housing and the

adaptive reuse of existing non-residential structures—both with and without public 

subsidy—through the expansion of our forward commitment offerings.

Freddie Mac has executed forward commitments since the early 2000s to provide 

greater certainty around permanent financing for both developers and construction 

lenders, making construction lending more feasible. These commitments are particularly 

useful in countercyclical environments when liquidity is constrained. 

Freddie Mac’s use of forwards will include properties that benefit from Low Income 

Housing Tax Credits (LIHTCs) or where affordability is required for a meaningful 

percentage of units through the terms of a Freddie Mac loan agreement.

Period Goals 

Year 1 – 2022 Expand our Forward Commitment Offerings 

• Formalize underwriting flexibilities for forward commitments.

• Commit to funding 15,000 units.

Year 2 – 2023 • Commit to funding 20,000 units*.

Year 3 – 2024 • Commit to funding 30,000 units.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

5.8: Rehabilitate Affordable Rental Housing 

Freddie Mac will work to provide financing through rehabilitation loans to improve the 

quality of affordable, decent, safe and sanitary housing, including properties available 

in racially or ethnically concentrated areas of poverty, formerly redlined areas and other 

geographic areas of underinvestment. 

We have identified five potential loan offering enhancements to support the 

rehabilitation of affordable rental housing.

Action 1: Expand Eligible Uses of Our Preservation Rehabilitation Loan Offering

Freddie Mac will expand our Preservation Rehabilitation loan offering eligibility criteria 

beyond new LIHTCs to support properties engaging in substantial rehabilitation, so long 

as they preserve affordability either through a regulatory agreement or through rent 

restrictions in the Freddie Mac loan agreement.

Action 2: Develop “Bridge to Rehab” Loan Offering

Freddie Mac will develop offering terms for a Bridge to Rehab loan that will allow a 

new owner to acquire a property, preserve its affordability and commit to rehabilitation 

under our Preservation Rehab offering. We anticipate this will increase the ability of 

affordability-preservation focused borrowers to compete with those who would raise 

rents beyond affordable levels following substantial renovations.

Action 3: Expand Liquidity to Institutions Providing Rehabilitation Loans

Freddie Mac currently offers several seasoned and affordable loan pool securitization 

options to institutions that provide rehabilitation loans, such as small and minorityowned banks and CDFIs. Freddie Mac will provide greater flexibility in these offerings to 

accommodate properties undergoing rehabilitation. 

Expanding rehabilitation collateral eligibility will provide a valuable source of liquidity 

to small and medium-sized lending institutions that support improvement of affordable 

housing, including affordable housing located in in racially or ethnically concentrated 

areas of poverty, formerly redlined areas and other geographic areas of underinvestment. 

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 28

*An earlier version of this Plan contained a typographical error for this goal. Corrected to reflect the goal as 

established in 2022.
Action 4: Promote Climate Resiliency Property Improvements

Freddie Mac will focus on advancing climate resiliency at properties by identifying 

and/or developing resiliency standards. We will explore how to assess properties for 

resiliency according to identified standards and explore opportunities to encourage 

owners to make improvements that enhance the property resiliency to natural disasters 

and promote sustainability.

Action 5: Promote Efficiency and Environmental Property Improvements

Freddie Mac will evaluate potential enhancements to green loan products and other 

financing tools to better meet market needs for decarbonization and to increase energy/

water efficiency in housing. The goal is for these loan products to have a greater impact 

on tenants by lowering utility costs and supporting affordability over time. These 

efforts can benefit households facing energy insecurity and historically underserved 

communities that face aging and inferior housing conditions.

Freddie Mac will also evaluate what changes might be needed to our Green Bonds 

program, which helps to attract capital for loans with energy/water efficiency 

requirements. As appropriate, we will implement enhancements to green loans and 

Green Bonds in 2024.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

Period Goals

Year 1 – 2022 • Fund 5,000 units of rehabilitated properties.

Liquidity to Institutions Providing Rehabilitation Loans

• Update pool transaction term sheet to include rehab loan eligibility.

Preservation Rehabilitation Loan Offering

• Update term sheet.

Bridge to Rehab

• Publish term sheet.

Year 2 – 2023 • Fund 10,000 units in rehabilitated properties

(assuming implementation of offerings in 2022).

Climate Resiliency Property Improvements

• Identify climate resiliency standards.

Environmental Property Improvements

• Evaluate enhancements for green offerings and other tools. 

Year 3 – 2024 • Fund 20,000 units in rehabilitated properties

(assuming implementation of offerings in 2023).

Climate Resiliency Property Improvements

• Implement climate resiliency standards, as applicable.

Environmental Property Improvements

• Implement enhancements, as feasible, based on prior year’s evaluation.

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 29
Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

5.9: Explore and Implement Methods to Preserve 

At-Risk Affordable Housing through Freddie Mac 

Affordability Restrictions

Freddie Mac will preserve affordable and workforce housing without government 

support by leveraging existing and exploring new loan offerings that enforce affordability 

restrictions through Freddie Mac’s loan documents or suitable equivalent. We will 

establish these standards of preservation and make them available across applicable 

loan offerings. This approach will allow private investment capital to be directed toward 

preserving affordability and will allow limited public subsidy to be applied where it is 

most needed and most effective. 

For LIHTC properties where the affordability restrictions expire during the Freddie 

Mac loan term, we will explore ways to motivate borrowers to commit to preserving 

affordability beyond the period of regulatory restriction if they are unable to pursue a 

new LIHTC syndication. This commitment would be enforced through the Freddie Mac 

loan agreement or suitable equivalent. We would update applicable Targeted Affordable 

Housing term sheets as appropriate to include these preservation parameters and 

promote them through our lender network. Enhanced offerings would be informed by 

our research described below. These efforts align with our Duty to Serve Plan activities 

aimed at preserving affordability at LIHTC properties and go beyond that work to 

preserve affordability at properties without government support. 

Period Goals 

Year 1 – 2022 • Support the preservation of 1,000 at-risk housing units, subject to 

affordability requirements in Freddie Mac loan documents or

suitable equivalent.

Year 2 – 2023 • Support the preservation of 3,000 at-risk housing units (assuming 

implementation of offerings), subject to affordability requirements in 

Freddie Mac loan documents or suitable equivalent. 

• Update existing applicable Targeted Affordable housing term sheets 

with enhanced preservation language and market to our lender 

network.

Year 3 – 2024 • Support the preservation of 5,000 at-risk housing units (assuming 

implementation of offerings), subject to affordability requirements in 

Freddie Mac loan documents or suitable equivalent. 

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 30
5.10: Analyze Low-Income Housing Tax Credit 

Properties at Risk of Lost Affordability 

Freddie Mac will analyze the magnitude of LIHTC property affordability loss, as well 

as where it is most likely to occur. While other research has been conducted on this 

topic, our work will provide a more market-specific assessment of risk to affordability 

of units when restrictions expire. We will publish a paper that measures the risk of lost 

affordability, examining these findings in the context of available public subsidy, such as 

private activity bond and state-level LIHTC allocations. This research is aligned with our 

Duty to Serve Plan.

We will leverage this research in our efforts described above to increase the preservation 

of at-risk LIHTC properties through Freddie Mac loans on properties seeking to extend 

affordability through new LIHTC or through Freddie Mac loans on properties that may 

exit the LIHTC program but will commit to preserve affordability through the Freddie Mac 

loan agreement.

Period Goals 

Year 1 – 2022 • Publish paper.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 31
5.11: Financial Empowerment for Renters:

Credit Building, CreditSmart® and Opportunity

Building Features

Within the multifamily housing industry, Freddie Mac is providing renters opportunities 

to increase social and economic mobility. Freddie Mac announced in November 2021 a 

credit-building program which encourages the reporting of on-time rent payments to credit 

bureaus, which can both create and bolster credit scores. Through outreach and research 

efforts, we are exploring additional ways to further social and economic mobility for renters.

Action 1: Increase Rent Reporting for Credit Building 

Freddie Mac will partner with additional rent reporting vendors and encourage 

multifamily borrower adoption of on-time rent reporting to strengthen renters’ credit 

scores. Our goal is to make on-time rent reporting an industry standard.

Freddie Mac will also analyze the impact of credit building using credit bureau data, 

controlling for other potential drivers to isolate our impact. This research can inform 

changes to the program and/or encourage broader market adoption.

Action 2: Introduce CreditSmart for Renters 

CreditSmart—Freddie Mac’s proprietary financial empowerment curriculum—is free and 

robust. Lessons start with setting financial goals and put the power in the consumers’ 

hands to better understand concepts ranging from how to build a household budget, to 

saving for rainy-day expenditures, to buying or leasing a vehicle. For renters, CreditSmart 

can guide users through creating household budgets, determining how much to spend 

on rent and knowing what their tenant rights and obligations are before entering into a 

lease. Through our efforts, we are conducting targeted, deliberate outreach to renters by 

partnering with community organizations, such as Renter Resource Organizations, and 

credit building vendors to broadly promote the curriculum. We will also directly promote 

CreditSmart to renters through online marketing. 

Action 3: Identify renter opportunity-building features and standards

Freddie Mac intends to identify and build out standards around a core set of opportunitybuilding features—such as rent rebates and savings incentives for renters—that 

multifamily borrowers can implement at the property level. These features could be 

layered into offerings our borrowers are already using through Freddie Mac to further 

increase the impact these offerings can have on tenant advancement.

Period Goals 

Year 1 – 2022 Credit Building

• Make credit building available to 100,000 new units.

CreditSmart

• Implement strategy to deliberately market CreditSmart at

multifamily properties.

• Enroll at least five partner corporations in CreditSmart Coach training.

Opportunity Building

• Identify a core set of opportunity-building features for renters that 

borrowers are currently using.

Year 2 – 2023 Credit Building

• Extend credit building availability to a cumulative 200,000 units, 

counted from program inception.

CreditSmart

• Establish relationships with organizations to promote CreditSmart to 

their consumer base.

• Register at least 3,000 renters for CreditSmart.

Opportunity Building

• Develop standards for renter opportunity-building features that can

be leveraged in our programs and offerings and/or scaled across

the industry.

Year 3 – 2024 Credit Building

• Extend credit building availability to a cumulative 300,000 units, 

counted from program inception.

CreditSmart

• Register at least 5,000 renters for CreditSmart.

Opportunity Building

• 2024 goals will be established based on standards implemented

in 2023.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 32
5.12: Identify Opportunities to Support Market 

Adoption of Enhanced Baseline Tenant Protections 

Federal, state and local governments have sought to establish standards in landlordtenant relations and practices through a range of laws that provide various tenant 

protections, balancing the interests of landlords and tenants while maintaining a stable 

rental housing system.

Freddie Mac will consider disparities in tenant protections and tenants’ rights in

two ways.

First, we conducted in-depth research on the amount, availability and degree of core 

tenant protections in all 50 states, Washington, D.C. and applicable U.S. territories. 

Second, after completing and publishing our research, Freddie Mac will work with 

market stakeholders, including tenants’ rights advocates, multifamily developers/

owners, property managers and FHFA to explore the feasibility of expanding marketadoptable tenant protections.

Period Goals

Year 1 – 2022 • Publish paper.

Year 2 – 2023 • Explore the feasibility of expanding market-adoptable tenant 

protections.

Year 3 – 2024 • 2024 goals will be determined based on 2023 feasibility analysis. 

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 33
5.13: Analyze Housing Choice Voucher Availability, 

Efficacy and Acceptance for Renters and Homeowners

Freddie Mac will research the usage and efficacy of housing choice vouchers (HCV) 

nationwide in providing access to opportunity using geographic, policy and

data analysis. 

Based on this research, Freddie Mac will publish a paper that analyzes the severity and 

prevalence of factors that inhibit use of housing choice vouchers, especially in high 

opportunity areas, and investigates where vouchers can and cannot likely support rent 

levels and homeownership.

 We will examine:

• Where vouchers are used today.

• Where vouchers have the potential to be used based on market rent levels and 

program rules.

• How voucher usage aligns or does not align with areas that provide access

to opportunity.

Additionally, we will consider barriers to vouchers providing greater access to 

opportunity today as well as alternative scenarios under which vouchers could provide 

that access. 

While much research has been conducted on housing choice vouchers, this analysis will 

be specifically directed to shed light on voucher usage as it relates to neighborhood 

affordability and opportunity and may contribute to development of—or outreach related 

to—Freddie Mac loan offerings or other efforts to maximize the impact of housing

choice vouchers.

Period Goals

Year 1 – 2022 • None (to begin in year 2).

Year 2 – 2023 • Acquire HUD housing choice voucher data and achieve controlled 

operational usability.

• Analyze data and document how we will leverage it to inform the 

broader housing market on the use of housing choice vouchers.

Year 3 – 2024 • Publish paper.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 34
• We would seek to encourage or include additional equity-focused features in the 

program, where market-adoptable:

o Allow for the eventual sale of SFR properties to tenants, thereby returning 

homeownership opportunities to the single-family housing supply.

o Implement credit building program.

o Accept housing choice vouchers, where economically feasible.

o Include market-adoptable tenant protections, where feasible.

o Implement green improvements, such as installing energy-efficient appliances 

and low water usage bathroom and kitchen fixtures.

Period Goals 

Year 1 – 2022 • Complete market, feasibility and impact analysis.

Year 2 – 2023 • Begin to develop program approach and parameters, if warranted by 

feasibility analysis.

Year 3 – 2024 • Complete program development.

• Launch SFR offering, if applicable.

5.14: Reform the Single-Family Rental Market with a 

Focus on Equity, Affordability and Sustainability 

Freddie Mac entered the Single-Family Rental (SFR) market in 2018-2019 under a 

temporarily authorized pilot program. During the pilot, Freddie Mac purchased over 

$1.3 billion in SFR loan volume and financed 16,140 underlying properties.

The Freddie Mac SFR pilot:

• Focused on small and middle-tier borrowers.

• Contributed to affordable housing supply by demonstrating that SFRs affordable at 

80% of area median income (AMI) could be created and well-operated.

• Provided borrowers much-needed access to credit with long-term financing at

lower rates.

• Targeted borrowers who operated in the affordable segment of SFR.

Freddie Mac’s SFR pilot demonstrated the value of providing targeted financing for 

affordable SFRs. If we were to re-enter the SFR market, we would take the lessons 

from our pilot and apply them with a distinct focus on furthering equitable housing, 

supporting strong and tenant-friendly management practices, facilitating opportunity for 

homeownership and furthering access to opportunity for renters.

• Freddie Mac would aim to provide access to capital and thereby opportunity, 

particularly for emerging and diverse small- and middle-market SFR borrowers. 

Furthermore, we would not participate in financing large SFR transactions that 

involve 100% market rate or luxury rental homes, or fund equity buyouts, mergers or 

acquisitions of large institutional SFR owner/operators.

Address the 

Homeownership Gap

Address Systemic Underinvestment 

within Formerly Redlined Areas 

Finance the Creation and 

Preservation of Affordable Housing

Reduce Disparities in the Black and Latino 

Community Experience

Increase and Improve 

Quality of Affordable 

Housing Supply

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 35
SECTION 6

Conclusion 
This is Only the Beginning

The inequities facing Black and Latino communities are longstanding, and addressing 

this crisis demands long-term commitment and focus. Freddie Mac’s Equitable Housing 

Finance Plan sets a course that we—and our partners throughout the industry—will follow 

and improve upon for years to come, but it is only the beginning. We believe the actions 

in this Plan are meaningful steps that will help us address this urgent national priority and 

deliver on our mission of equitably making home possible.

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 37
SECTION 7

Appendix
7.1: Consumer Research Interviews & Surveys

In 2021, Freddie Mac conducted in-depth research interviews and surveys to help us determine the areas we should address in our Equitable Housing Finance Plan.

The details of this research may be referenced in the appendix of the Plan’s original version.

7.2: 2023 Updates to 2022 Equitable Housing Finance Plan (EHFP)

# Section Reason Page

3.3 Mortgage Insurance Cost Reduction • Conducted analysis and consulted with mortgage insurance companies, their trade association and other industry participants in 

2022. We anticipate continued discussions in 2023.

6

3.4 Title Insurance Risk Cost Reduction • In 2022, we consulted with title companies, their trade association and other industry participants. We anticipate continued 

discussions in 2023.

6

3.5 Reserve Funds • Updated actions due to extended stakeholder engagement and development timeline, beyond what had been anticipated 

for 2022. Revised actions reflect a delay in implementation but also a deeper stakeholder-informed approach.

7

3.6 Servicing for Sustainability (SingleFamily)

• Completed analysis on automatic payment deferral, as planned in Year 1, and determined it was not as scalable an approach as our 

proposed reserve fund. We are dedicating our resources to developing the reserve fund.

• Included additional goal for Special Servicing Framework, to launch test-and-learns on two loan populations.

• Included additional goal for loss mitigation, borrower outreach, education and counseling around improving borrower-facing 

educational materials.

8

4.1 Promote Down Payment Assistance 

Tools with Industry Partners Servicing 

Black and Latino Communities 

• Quantified the goal of expanding access to housing counselors by stating we will expand awareness to the DPA One tool access to 

10-20 housing counseling agencies that serve targeted communities.

• Quantified the goal of expanding standardized subordinate lien documents and standardized data to states by stating that we will 

continue to expand standardized subordinate lien documents and standardized data for 19 states.

10

4.2 Fair Servicing Analysis – New Section • New commitment to reflect our work in analyzing loss mitigation outcomes. 11

4.3 Finance Housing for Persons with 

Disabilities 

• Expanded approach to increase scalability by expanding population eligibility and transaction types. Our initial plan was focused 

exclusively on housing for individuals with intellectual disabilities. We are expanding our scope to help better meet the needs 

of individuals with a wider range of disabilities. These communities are also underserved, and serving this broader population 

necessitates a broader solution set than that identified in our initial plan.

12

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 39
# Section Reason Page

4.4 Provide Liquidity to Permanent 

Supportive Housing for Persons Who 

Formerly Experienced Homelessness

• Expanded approach to increase scalability by including various ways of financing supportive housing. Our initial plan focused on 

working with distinct markets and directly seeking to leverage and expand the use of existing government programs. Through our 

research and outreach in Year 1, we identified important work that non-profit organizations are doing to increase housing access 

to persons who have experienced homelessness. We are expanding our approach to identify standards that might increase the 

impact and scalability of these non-profit approaches.

13

4.5 Improve the Quality of Single-Family 

Homes in Traditionally Underserved 

Black and Latino Communities [formerly 

5.4 Provide Technical Assistance on 

Renovation Financing]

• Changed tactic name – formerly known as Provide Technical Assistance on Renovation Financing.

• We expanded our approach to improving the quality of single-family homes to include additional solutions beyond providing 

technical assistance on renovation financing.

• Based on Year 1 insights and feedback from community stakeholders, more financing tools are needed to improve and create 

affordable single-family homes. Use of the New Markets Tax Credit (NMTC) was identified as an innovative source of financing that 

many community stakeholders are starting to embrace.

14

4.6 Expand the Develop the Developer 

Academy Program

• Revised to scale and standardize approach and include additional individual markets. 

• Increase developer enrollment goal from 10 to 30 for 2023 and from 10 to 45 for 2024.

15

4.7 Social Bond Issuance (Single-Family) • Updated 2023 goals to better reflect continued need to align our progress on SPCPs with our social bond framework. 16

4.8 Increase Opportunities for Diverse 

and Emerging Multifamily Borrowers

[formerly 4.7 Increase Diverse 

Multifamily Borrowers’ Access to 

Capital]

• Changed tactic name – formerly known as Increase Diverse Multifamily Borrowers’ Access to Capital.

• Broadened the approach to increasing opportunities for diverse and emerging borrowers, focused on closing knowledge, 

relationship and financing gaps.

17

4.9 Affirmative Outreach & Insights

[formerly 5.7 Affirmative Marketing 

Plan]

• Changed tactic name – formerly known as Affirmative Marketing Plan.

• Expanded tactic to incorporate the outreach and insights work that is being done in Black and Latino communities.

• Incorporated sustainability and climate impact.

• Updated goals to reflect an expansion to outreach.

18

removed Equity Research Agenda • We will continue to publish research in Years 2 and 3, as appropriate, e.g., to support our corporate climate resiliency efforts. –

5.3 Valuation Modernization and Equity

[formerly 6.3 Solutions to Address 

Appraisal Bias and 4.4 Automated 

Collateral Evaluation Expansion]

• Changed tactic name – formerly known as Solutions to Address Appraisal Bias. 

• Added specific goals to support appraisal industry engagement by quantifying: new appraisers being mentored; ADI events; and 

scholarship recipients we plan to host. 

• Former Section 4.4 Automated Collateral Evaluation Expansion was incorporated into this section.

22

5.4 Provide Capital for Very Small 

Multifamily Properties by Expanding 

“Linked Loan” Parameters

• Activity completed. 25

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 40
# Section Reason Page

5.5 Support Renter Resource Organizations

[formerly 6.5 Support Renter and 

Multifamily Borrower Resource 

Organizations]

• Changed tactic name -- formerly known as Support Renter and Multifamily Borrower Resource Organizations

• Revised goal to focus on four organizations rather than seven each year in order to enhance the depth of our engagement with 

each individual organization.

26

5.6 Develop Multifamily Correspondent 

Lender Program for Community 

Development Financial Institutions and 

Small Lenders

• Revised goal to require that each Optigo lender establish a correspondent lender agreement with a CDFI, SFI or MDI to expand 

program impact. This accelerates and expands our initial goal of one additional correspondent lender relationship by Year 2 and 

five by Year 3.

27

5.7 Leverage Forward Commitments to 

Facilitate Ground-Up Construction and 

Adaptive Reuse of Affordable Rental 

Housing for Individuals and Families

• We have focused this effort on forward commitments, which provide near-term impact that can be scaled. While we see 

opportunities to further impact the construction lending market by providing liquidity for construction-to-permanent financing over 

time, the increased use of our expanded forward commitments is best able to impact the market now.

28

5.8 Rehabilitate Affordable Rental Housing • Revised rehab unit goal from 12,000 to 10,000 to account for market conditions.

• Incorporated preserving at-risk LIHTC units into existing preservation efforts.

• Revised to focus on establishing climate-resiliency standards.

• Added the evaluation of potential enhancements for green loan products and other financing tools to meet market 

decarbonization needs.

28

5.9 Explore and Implement Methods to 

Preserve At-Risk Affordable Housing 

through Freddie Mac Affordability 

Restrictions

• Included broader preservation activities and reduced 2024 target from 6,000 to 5,000 to account for market conditions. 30

removed Small Balance Loan Rehabilitation • This activity was removed, as other activities in the Plan will meet the need and have greater impact in the market. –

removed NOAH Preservation • This activity was removed, as other activities in the Plan will meet the need and have greater impact in the market. –

5.10 Analyze Low-Income Housing Tax Credit 

Properties at Risk of Lost Affordability

• Activity completed. 31

removed Analyze and Identify Affordable Rental 

Housing Needs

• This activity was removed to account for the in-depth analysis needed for a broader scope. –

5.11 Financial Empowerment for Renters: 

Credit Building, CreditSmart and 

Opportunity Building Features

• Changed the metric for CreditSmart from “offer” to “register.” Registrations more accurately reflect the reach of the program but 

are naturally a smaller number than those to whom the program was offered. 

• Enhance work with organizations to disseminate CreditSmart.

• Revise objective to focus on “Renter Opportunity” features; remove mention of incentivizing borrowers to broaden the scope.

32

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 41
# Section Reason Page

5.12 Identify Opportunities to Support 

Market adoption of Enhanced Baseline 

Tenant Protections [formerly 6.13 

Identify and Implement Enhanced 

Baseline Tenant Protections]

• Having published landmark research on tenant protections, and with the enhanced attention of market stakeholders on this issue, 

it is important to be very intentional in engaging those stakeholders as we work with them to determine what is most market 

adoptable. As a result, we are spreading out our efforts over a two-year period. We will conduct in-depth outreach in Year 2 and 

apply what we learned through our work with stakeholders in Year 3.

33

5.13 Analyze Housing Choice Voucher 

Availability, Efficacy and Acceptance for 

Renters and Homeowners

• Revised goal to analyze data in 2023 and publish a paper in 2024, given the volume of data to analyze. 34

EQUITABLE HOUSING FINANCE PLAN - APRIL 2023 UPDATE 42
43