SUSTAINABILITY REPORT 1

Sustainability Report

2022
SUSTAINABILITY REPORT 2

On behalf of Freddie Mac, I am pleased to present the company’s first 

Sustainability Report, which describes how we bring our mission of Making 

Home Possible to life. This report also provides details on the company’s 

2022 Environmental, Social, and Governance (ESG) strategy, activities 

and performance.

For more than 50 years, Freddie Mac has served America’s homebuyers, 

homeowners and renters by providing liquidity, stability and affordability 

to the housing market. We do so every day, in every market across all 

economic conditions.

Freddie Mac’s corporate strategy includes four pillars to support our mission: 

deliver on our affordable housing commitments; identify, assess and manage 

risk; grow, develop and empower talent; and build financial strength.

ESG-related activities are integrated into each of these corporate priorities 

in meaningful ways. For example, our work to provide affordable, equitable 

and sustainable access to housing is a core part of our social responsibility. 

Our focus on the environment has led to financing for energy and water 

improvements in single-family and multifamily housing, green bonds 

and a focus on environmental sustainability in our business and operational 

practices. Our commitment to governance is evident in our Board and Senior 

Management oversight. It is also reflected in our concerted efforts to better 

manage our risks, particularly climate-related risk. 

The pages that follow will highlight the progress we have made on these 

items over the course of 2022. They also illustrate the extraordinary efforts 

of our dedicated, hard-working employees, who are the embodiment of 

Freddie Mac’s mission.

We know our work to support affordable, sustainable and equitable housing 

for families and communities across the nation is ongoing and there’s much 

more to do. Our sustainability efforts in 2022 represent progress we will 

continue to build on to make home possible for all.

Michael DeVito 

CEO, Freddie Mac

Michael DeVito

Letter from the CEO
SUSTAINABILITY REPORT 3

Table of Contents

Letter from the CEO

Table of Contents

About This Report

Our 2022 Impact

Awards

About Freddie Mac

Our Mission and Values

Corporate Strategy

About Sustainability at Freddie Mac

Environment

Governance

Strategy

Risk Management

Metrics

Social

Sustainable Homeownership

Affordable Rental Market

Underserved Markets

Financial and Homeownership Capability

Racial Equity in Housing Finance

Diversity, Equity and Inclusion at Freddie Mac

Employee Engagement and Well-Being

Supplier Diversity and Financial Transactions

Governance

Regulatory Engagement

Corporate Governance

ESG Governance

Risk Management

Data Security

Appendix

Scope of SASB Alignment and Reporting

Management Assertion

SASB Index and Metrics, as Modified

Assurance Scope

SASB Metrics, as Modified

Report of Independent Accountants

TCFD Index

Materiality Matrix

2

3

4

5

7

8

10

11

14

16

17

18

31

32

33

34

38

41

43

45

52

55

58

59

59

59

61

65

67

68

68

68

69

72

73

101

102

103
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About This Report

The Sustainability Report details information for calendar year 2022, unless otherwise noted. It focuses on the issues Freddie 

Mac (the company) has determined to be of material importance from an ESG perspective, which is a different standard than 

that used in our financial disclosures. We identified our ESG priorities through a materiality assessment involving internal and 

external stakeholder engagement and relevance to investors, ESG reporting standards and ESG ratings organizations.

Some of the information included in this report has been previously disclosed in other voluntary and mandated reporting, 

including on our website and in our 2022 Annual Report on Form 10-K filed with the Securities and Exchange Commission 

(SEC). Please also see ESG Reports and Disclosures on our website. 

The report includes information prepared in consideration of the Sustainability Accounting Standards Board (SASB) 

Standards for Mortgage Finance (our primary SASB industry), Commercial Banks, and Investment Banking and Brokerage. 

In addition, we have aligned the Environment section with the core elements of the Task Force on Climate-related Financial 

Disclosures (TCFD) framework. Please see the SASB Index and Metrics, as Modified and TCFD Index in the Appendix of this 

report for more information. 

Our approaches to the disclosures included in this report may be different from those included in mandatory regulatory 

reporting, and we can provide no representation or assurance that our internal approach is consistent with other investment 

criteria, taxonomies, standards or guidelines. Any goals presented in this report are aspirational; as such, we make no 

guarantee or promise that these goals will be met. While this report describes events, including potential future events, 

and priorities that may be significant from an ESG perspective, any significance does not necessarily equate to the level of 

materiality of disclosures required under U.S. federal securities laws.
SUSTAINABILITY REPORT 5

Helped nearly 2.5 million

families buy, refinance or rent a home, 

while delivering solid financial results 

Eliminated over 39 tons

of CO2

 in 2022 through

composting efforts, and donated 

approximately 20,000 meals of leftover 

food to local food rescue groups

Provided foreclosure 

avoidance education 

and counseling to 

more than 41,000

households

Met our commitment to issue $3 billion

in Single-Family affordable housing bonds

Provided $614 billion in liquidity to the 

housing market through more than 1,000 lenders

Financed more than 695,000 rental units, 

96 percent of which were affordable to families 

earning no more than 120 percent of area 

median income (AMI)

Issued more than $1.3 billion

in Single-Family Mortgage-Backed Securities 

(MBS) in 2022, as part of our commitment 

to green and sustainable housing

Made home possible for

440,000 first-time

homebuyers, representing nearly half of 

primary residence purchase

Environmental

Mission

Multifamily issued $484.2 million

in Multifamily Green Bonds and $2 billion

in Multifamily Sustainability Bonds

Our 2022 Impact
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Received 100% score on 

Human Rights Campaign Foundation’s

Corporate Equality Index 2022 Best Place to 

Work for LGBTQ+ Equality

Formed the Mission and Housing 

Sustainability Committee

of the Board of Directors

100% of employees completed annual training 

on Code of Conduct, Insider Trading, Data 

Privacy & Protection and Anti-Fraud practices

Our employees spent nearly 5,000 

hours volunteering

Governance

Freddie Mac is proud to be a majority-minority

company, which means more than 50% of 

our employees identify as racially or ethnically 

diverse. Women make up 40% of our workforce

Since its creation in 2016, more than 

50 diverse suppliers have completed 

our Supplier Academy, and new spending with 

their small businesses totals more than 

$109 million

Social

Our 2022 Impact
SUSTAINABILITY REPORT 7

Campus Forward Award 

for Excellence in 

Early Career Hiring

Top Workplace for the 

Next Generation of Talent

Best Places to Stay and Thrive

Textio Leadership Award U.S. Securitization Awards 

CMBS/CRE CLO Deal of the Year

Social Bond of the Year Award Women of Influence

Innovations in 

Diversity Award

Best Places to Work for 

LGBTQ+ Equality

Diversity Leader

Awards
SUSTAINABILITY REPORT 8

About Freddie Mac

Freddie Mac’s mission is to make home possible for families across 

the nation. Since 1970, we have helped tens of millions of families buy, 

rent or keep their home. 

What We Do

Freddie Mac is a government-sponsored enterprise (GSE) chartered by Congress, with a mission to provide liquidity, stability 

and affordability to the U.S. housing market.

We do this primarily by purchasing single-family and multifamily residential mortgage loans originated by lenders. In most 

instances, we package these loans into guaranteed mortgage-related securities, which are sold in the global capital markets, 

and transfer interest rate and liquidity risks to third-party investors. In addition, we transfer mortgage credit risk exposure 

to third-party investors through our credit risk transfer programs, which include securities- and insurance-based offerings. 

We also invest in mortgage loans and mortgage-related securities. We do not originate mortgage loans or lend money 

directly to mortgage borrowers. 

We support the U.S. housing market and the overall economy by enabling America’s families to access mortgage loan 

funding with better terms and by providing consistent liquidity to the single-family and multifamily mortgage markets. 

We have helped many distressed borrowers keep their homes or avoid foreclosure and have helped many distressed 

renters avoid eviction.

We conduct business through two business segments that are integral to our ESG strategic framework and our ability to 

make an impact through our mission: Single-Family and Multifamily. 

Stability

Our support for the housing market in 

good times and bad, helps families rent, 

buy and keep homes they can afford

Liquidity

We keep mortgage money flowing 

through the housing market in 

communities from coast to coast

Affordability

We are committed to finding new 

ways of ensuring that quality, 

affordable housing remains within reach
SUSTAINABILITY REPORT 9

Single-Family

Our Single-Family business segment provides liquidity and 

support to the single-family mortgage market through a 

variety of activities that include the purchase, securitization 

and guarantee of loans secured by properties with one to 

four residential dwelling units. Central to our mission is our 

commitment to helping more families attain affordable and 

sustainable housing and to increasing equitable access to 

housing finance.

In 2022, Freddie Mac made home possible for 440,000 

first-time homebuyers, representing nearly half of our 

primary residence purchases. We also purchased tens 

of thousands of loans through Freddie Mac Home Possible®, 

our flagship mortgage product that helps low-income 

homebuyers by offering a down payment as low as three 

percent. Nearly 40 percent of Home Possible® loans 

purchased last year supported majority-minority communities.

Multifamily

Our Multifamily business segment provides liquidity and 

support to the mortgage market for properties with five or 

more residential dwelling units through a variety of activities 

that include the purchase, securitization and guarantee 

of multifamily loans originated by our Optigo® network of 

approved lenders. Our support of the multifamily mortgage 

market occurs through all economic cycles and is especially 

important during periods of economic stress. During these 

periods, we serve a critical countercyclical role by providing 

liquidity when many other capital providers exit the market. 

Central to our mission is our commitment to support greater 

access to quality, affordable and sustainable rental housing, 

particularly in underserved markets.

In 2022, our Multifamily business provided financing to 

preserve affordability for more than 130,000 workforce 

housing and Targeted Affordable Housing units. These units 

are subject to government programs with rent or income 

restrictions or have rents preserved through a Freddie Mac 

loan agreement. Freddie Mac also enabled approximately 

20,000 residents of manufactured housing communities to 

benefit from a series of tenant protections that go beyond 

current state and local requirements. 

About Freddie Mac

For more information, see “Our Business Segments” on page 23 of our 2022 Annual Report on Form 10-K.
SUSTAINABILITY REPORT 1 0

Our Mission and Values

We are Making Home Possible for families across the nation by financing the creation and preservation of more affordable 

homeownership and rental opportunities. We empower our employees and Board of Directors to act with professional 

integrity and uphold our corporate values: Mission, Integrity, Excellence and Inclusivity.

We are mission driven

We put the health of the housing finance 

market at the forefront of our business decisions 

And Mission drives everything we do 

We do the right thing 

We lead the company and our industry with integrity 

And we take responsibility for our actions 

We perform with excellence 

We thoughtfully approach challenges 

And we reliably deliver on our commitments 

We are inclusive 

We embrace our differences 

And we engage with respect and positive intent

SUSTAINABILITY REPORT 1 0

About Freddie Mac
SUSTAINABILITY REPORT 1 1

Corporate Strategy

Freddie Mac has four priorities, each of which was created to ensure we fully serve our mission:

• Deliver on affordable housing

• Identify, assess and manage our risks

• Grow, develop and empower talent for today and tomorrow

• Build financial strength to serve our mission

These strategic priorities help us create a more liquid, stable, affordable and equitable housing finance system that serves 

lenders, families and the housing market. And, as with any mission-driven company, our people are at the center of all we do.

About Freddie Mac

Affordable Housing

Making home affordable for more

people is central to our mission

Financial Strength

Building capital and

financial stability are key

to advancing our mission

Risk

Safety and Soundness are the

foundation of a strong company

and housing finance market

People

The best talent, embracing our values

and competencies, helps ensure

that we can meaningfully

deliver on our mission
SUSTAINABILITY REPORT 1 2

I want to show the people who grew up 

with me, the people in my community 

and those in similar communities who 

may be looking for rays of hope, that it 

is possible to build your life to where 

you want it.

Nicholas Whiteside

Homeowner

Make It In Memphis

How One Homebuyer Achieved His Goal of Homeownership

Nicholas Whiteside’s homeownership journey began after graduating from Fisk University in 2021, when he purchased his 

first home in the same Memphis community where he grew up. 

While in college, Whiteside was introduced to money management and homebuying resources through a campus program 

supported by Freddie Mac. Through that program and CreditSmart®, Freddie Mac’s free online financial education 

curriculum, Whiteside saw the resources available to him as a first-time homebuyer and used them to purchase his first home. 

He qualified for Freddie Mac’s Home Possible® mortgage, a loan designed to help low- and very low-income homebuyers by 

requiring only a 3% down payment. 

Whiteside became a homeowner at age 22 and now works to connect young borrowers like him to our free resources as 

well as Freddie Mac’s Borrower Help Center network, offering free assistance that includes a full suite of financial education 

and mortgage help services. 

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Our Mission in Action
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Conservatorship

Since 2008, Freddie Mac has been operating in conservatorship, with the Federal Housing Finance Agency (FHFA) as our 

Conservator. FHFA is also our primary regulator. Being in conservatorship significantly affects our business and activities. 

For more information, see “Conservatorship and Related Matters” on pages 100-103 of our 2022 Annual Report on Form 10-K.
SUSTAINABILITY REPORT 1 4

About Sustainability 

at Freddie Mac

At Freddie Mac, our ESG priorities reflect our unique role as a GSE chartered by Congress to support the U.S. housing 

finance system, helping ensure a reliable and affordable supply of mortgage funds across the country. We achieve that 

mission through our corporate strategy, which is supported by a focus on our most significant ESG risks and opportunities. 

This includes addressing long-standing issues of inequity in housing; promoting environmentally sustainable housing to 

reduce climate risks and increase affordability; and promoting greater diversity, equity and inclusion in the housing market.

Freddie Mac established its Corporate Sustainability Office (CSO) in 2020 to serve as an integration point for ESG-related 

initiatives across the company. As we continue to evolve our ESG priorities, we remain committed to sharing our progress 

as we believe transparency and accountability are key to success. 

Our ESG Priorities

Our ESG priorities were informed by a robust materiality assessment completed in 2020 in partnership with Business for 

Social Responsibility (BSR). This process involved engagement with internal leaders and external partners, as well as research 

on relevant industry standards, to identify and prioritize ESG issues of importance to our stakeholders, long-term business 

and mission. The results of our ESG materiality assessment form the basis of our ESG strategic framework, which describes 

how we will address our priority ESG issues, supports our focus and guides our reporting.

Leveraging both interviews and survey results, BSR developed Freddie Mac’s initial Materiality Matrix and structured it in 

accordance with a four-quadrant methodology (see the Appendix, which provides a relative view of material ESG issues, all 

of which are important to Freddie Mac). Ultimately, this effort and the Materiality Matrix led to the development of the ESG 

strategic framework composed of four thematic pillars: Purpose, Planet, Practices and People. These pillars align to 

the ESG construct as follows:

In accordance with industry best practice, we have undertaken a refresh of our materiality assessment in partnership 

with KPMG in 2023. We regularly review our ESG strategic framework to respond to shifting market demands, internal and 

external stakeholders, and industry changes. We anticipate that our ESG strategic framework will evolve based on the 

results of our 2023 materiality assessment refresh. Updated information about our ESG priorities can be found on our 

ESG website.

Social

Purpose, Planet and People

Environment

Purpose, Planet and Practices

Governance

Practices
SUSTAINABILITY REPORT 1 5

Our Duty to Serve Underserved 

Markets Plan (Duty to Serve Plan) 

details the ways we are leading the 

industry in developing innovative 

solutions for rural housing, 

manufactured housing and affordable housing preservation 

that will benefit the nation for generations to come. We deliver 

progress reports to FHFA on a quarterly and annual basis.

Our Multifamily Impact Bonds 

website and Report describe the 

Impact Bonds we have designed 

to help investors focus on 

overcoming housing challenges 

and provide support for environmental and social goals.

Our Annual Housing Activities 

Report provides information 

on how Freddie Mac supports 

affordable single-family and 

multifamily housing, serves 

minority and lower-income borrowers, expands access 

to credit for first-time homebuyers and underserved 

communities and promotes sustainable homeownership.

Our online Media Room and 

external ESG website provide 

timely updates on ESG initiatives 

and program-related news 

and milestones.

Our Equitable Housing Finance Plan

is designed to promote equity and 

increase sustainable homeownership 

and rental opportunities for 

traditionally underserved 

communities across the nation. The plan, covering 2022-

2024, sets ambitious goals, outlines actions to achieve those 

goals and includes annual progress reports. We published a 

performance report describing our 2022 progress.

Our corporate financial reporting, 

including our 2022 Annual Report 

on Form 10-K, Quarterly Reports 

on Form 10-Q and Current Reports 

on Form 8-K, provide additional 

information on our business and financial performance.

Our Single-Family Green and 

Social Mortgage-Backed Security 

(MBS) website and Green MBS 

Impact Report describe the ESG 

MBS program we have designed 

to help investors address ESG issues, such as energy 

efficiency and affordability challenges, particularly in 

underserved markets.

Sustainability and ESG Reporting at Freddie Mac

This first annual Sustainability Report supports our vision of responsive and responsible reporting on material ESG-related 

issues, and is part of a broader focus on providing transparency on our work in support of our ESG priorities. The report 

builds upon our two previous SASB reports.

We provide additional ESG-related information through the following:

About Sustainability at Freddie Mac
SUSTAINABILITY REPORT 1 6

Environment

Introduction

Many people in the United States experience the effects of climate 

change through the impact it has on their home. Changes in physical 

hazards could bring more severe or frequent heat waves, droughts 

and wildfires, increased flooding and stronger hurricanes, which 

may drive damages and affect the costs and availability of insurance. 

The transition to a lower-carbon economy to mitigate climate change 

will require significant improvements to energy efficiency in housing 

as buildings contribute roughly a third of total emissions in the U.S. 

These changes will lead to new risks and opportunities 

for Freddie Mac, presenting challenges but also the prospect of a 

more sustainable and resilient future for housing. 

Our focus on the environment aligns with our corporate strategy, 

supporting our mission and furthering our commitment to robust 

risk management. Climate change and increasing attention to 

climate-related matters may drive or exacerbate the traditional risks 

we face, including credit risk. We remain vigilant in managing risk 

and will evolve our approach over time so that we can continue to 

advance our business and mission.

Here we acknowledge both the risks that 

climate change presents to our business

and the impact that we have on the 

environment. The sections that follow are 

structured to align with the core elements 

of the recommendations of the Task Force 

on Climate-related Financial Disclosures: 

Governance, Strategy, Risk Management

and Metrics and Targets.

The Task Force on Climate-related 

Financial Disclosures (TCFD) was 

established by the Financial Stability 

Board to create a framework for 

reporting climate-related risks 

and opportunities. The standards 

are designed to promote clear, 

comprehensive disclosure on 

the impacts of climate change. 

The principles of TCFD have been 

widely adopted for climate-related 

disclosures among our peers and 

around the globe and are likely to 

underpin any future regulatory 

reporting requirements in the U.S.
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Governance

Freddie Mac continues to establish formal oversight of climate-related risks and opportunities and institute governance 

processes to promote effective climate risk management and climate risk awareness in business decisions across the 

company. A full diagram of the 2022 ESG governance is shown on page 61.

Climate-related risks are identified and escalated through the cross-divisional Climate Risk Advisory Group, to the Enterprise 

Risk Committee and senior management, and to the Risk Committee of the Board of Directors. In 2023, we created a 

Climate Risk Steering Committee to replace the former Climate Risk Advisory Group. The Climate Risk Steering Committee 

engages senior management, including the business heads, on climate risk topics and promotes the integration of climate 

risk into risk management processes and business decisions. 

Climate-related opportunities are governed through a similar process. Opportunities identified by the lines of business 

and the CSO are, where appropriate, raised to senior management in the Mission and Housing Sustainability Management 

Committee, the ESG Steering Committee and to the Mission and Housing Sustainability Committee of the Board.

Board Oversight

Certain Board committees have specific climate-related oversight responsibilities. The Board receives climate risk 

training and committees are updated on climate risks and opportunities periodically. The Risk Committee of the Board

is responsible for reviewing the potential negative impacts of climate change as a driver of other risk types and oversees 

the identification, assessment and management of climate-related risks across the company. The Mission and Housing 

Sustainability Committee of the Board oversees Freddie Mac’s strategies and significant initiatives related to promoting 

sustainability in housing, including opportunities to reduce our climate impact. Lastly, the Audit Committee of the Board

has oversight of our climate-related disclosures.

Senior Management Oversight

Senior management oversight of climate-related risks and opportunities is supported by the following committees: 

the Enterprise Risk Committee receives periodic climate risk updates and oversees climate risk as a driver of other risk 

types; the Climate Risk Advisory Group (now the Climate Risk Steering Committee) convenes senior management and key 

stakeholders across the enterprise on a regular basis to discuss climate risk-related topics and activities at the company; the 

Mission and Housing Sustainability Committee reviews climate opportunities to enhance the sustainability and resilience 

of the housing stock; and the ESG Steering Committee reviews and prioritizes climate-related opportunities and works 

to increase the awareness of climate-related opportunities. Additional information can be found in the ESG Governance 

section, starting on page 61.

Resources Across the Enterprise

Freddie Mac is promoting climate risk management and sustainability across the enterprise. The organization created 

dedicated climate risk and analytics teams within Enterprise Risk Management and the Single-Family business and is building 

climate risk expertise in the Multifamily business, Economic & Housing Research and Internal Audit.

Enterprise Risk Management, together with the business divisions, is responsible for considering climate risk in governance 

structures, business decision-making and risk management processes, including how we identify, assess, control, monitor 

and report on the risks that climate change poses to Freddie Mac.

The climate risk teams and others across the enterprise are working to quantify the company’s exposure to physical and transition 

climate risks, address climate data gaps, advance research initiatives and integrate climate risk into business processes.

Environment
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Additionally, these resources work alongside the CSO to identify climate-related opportunities to promote resiliency, 

affordability and sustainability in housing and reduce our climate-related risks. The CSO serves as an integration point for 

ESG-related initiatives across the company.

Strategy

Climate change could have a significant impact on housing, both through changing physical hazards and the actions taken 

to mitigate and adapt to climate change. This can impact property values and housing costs, which means climate change 

intersects with the core of our business and mission. Our climate strategy revolves around reducing our climate impact; 

advancing our understanding and management of climate-risks; identifying opportunities to secure availability of safe, 

affordable, sustainable and resilient housing; and reducing our own climate impact.

Climate Risks

We consider climate risk to be a driver of other risk types, and importantly a driver of credit risk. Climate change drives 

the credit risk of mortgages through its impact on the borrower and the value of the property securing the mortgage loan. 

Climate-driven increases in the cost of housing may lower the discretionary income of homeowners and the net operating 

income of multifamily property owners, increasing the likelihood of borrower default. Property values may be adversely 

impacted by climate change, leading to higher probability of default and loss given default, or potentially affect affordability 

for renters. Together, these impacts may increase credit losses to Freddie Mac.

The increased risk arising from natural disasters like floods, hurricanes and wildfires, as well as chronic changes like sea level rise 

and rising temperatures, constitutes our physical climate risk. We also face climate transition risk, which is the negative impact 

from the transition to a lower-carbon economy. Physical and transition risks are linked in that long-term physical risk is mitigated 

by an effective transition to a lower-carbon economy. The transition, though ultimately beneficial, comes with the risk of 

near-term costs. Considering this, we expect transition risks to be highest in the short- to medium-term and physical risks to 

grow through the medium- to long-term, with the long-term level of physical risk dependent on the lower-carbon transition.

Environment
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Risk Type Description

Physical Risk

Acute

Acute physical risks arise from the increased frequency and 

severity of extreme weather events. These include flood, 

hurricane, wildfire and drought.

Chronic

Chronic physical risks build gradually and include shifting 

temperature and precipitation patterns, sea level rise 

and water stress.

Transition Risk

Policy and Legal

Policies to mitigate climate change and lower emissions, including 

carbon taxes and energy efficiency requirements, can impose 

costs and present financial risk. Legal risk arises from the potential 

for litigation over climate-related issues.

Technology

Technology risk includes costs to adopt more 

energy-efficient technology and penalties for not having 

energy-efficient technology.

Market

Market risks arise from changes in homebuyer or renter 

behavior, which could impact property values, and changes 

in investor behavior, which could affect demand for 

mortgage-backed securities.

Reputation Reputation risk may arise from the perception that the company 

is doing too little to address climate change.

Environment
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Physical Risks

Physical hazards may expose us to credit risk by damaging properties that secure 

loans in our mortgage portfolio and by increasing the housing costs associated with 

insurance, repairs and maintenance. The increasing frequency or intensity of physical 

hazards may also adversely impact the value of a property as risks are priced or property 

condition is affected. 

Physical climate risk overlaps in many ways with natural disaster risk, which we have historically managed effectively for our 

portfolio. As we consider the risks of climate change, we are working to assess how projected changes in the frequency, 

intensity and impact of natural disasters will affect our business in the future. The table below lists physical risks, the business 

impacts and mitigation methods common to most physical hazard types to which our company has exposure, including 

flood, hurricane and wildfire. Earthquakes are also a natural disaster risk for our business, but it is not included in the hazards 

associated with physical climate risk.

The Occurrence of Severe Hazard Events

Environment

Risk

• A severe hazard event can cause significant property damage, force temporary or permanent relocation, lead to 

business disruption and result in costly or deferred repairs. These impacts may be worsened by the effect of the 

event on the surrounding community.

• Climate change is likely to result in more frequent severe events, including floods, hurricanes and wildfires in many 

locations across the country.

Impact

• The costs of severe hazard events can exceed insurance coverage limits and lead to financial strain on households, 

increasing the likelihood that property owners fail to make mortgage payments on time.

• Multifamily property owners may experience business disruption and missed or delayed rent payments, which 

could result in lower operating income. Repair costs and other related expenses passed to tenants can lead to 

increased rents, negatively impacting affordability.

• Repairs that are not made following an event can negatively impact property values.

• If a severe hazard event results in default, Freddie Mac could be left with a property that has lost value. An increase 

in probability of default and decrease in property value increases Freddie Mac’s credit risk.

Mitigation

• Insurance coverage pays for repairs to damage caused by severe hazard events, up to a certain amount. Disaster 

relief, from government or private aid, can help with uninsured repair costs. Both insurance and disaster relief 

lower the exposure of borrowers to financial loss and speed the time to recovery.

• Freddie Mac’s loan workout options, including forbearance, repayment plans and payment deferrals, allow 

borrowers to spread impacted mortgage bills over future payments and lower the likelihood of default.

• Climate risk awareness, including climate risk disclosure, may lead to homeowners and renters being better 

informed of the risk of severe events and being better prepared. This may result in property owners making 

resiliency improvements or purchasing additional insurance.

• Freddie Mac’s credit exposure is further limited by geographic diversification, homeowner equity and our credit 

risk transfer program.

Risk Type: Acute
SUSTAINABILITY REPORT 2 1

Risk

• In addition to the occurrence of direct hazard events, we are exposed to the risk that the expected losses 

associated with physical hazards increase and the property market adjusts to reflect this risk. The timing and extent 

of this adjustment is uncertain.

Impact

• Expected changes in physical hazards could increase insurance costs and this increased cost of housing could 

result in lower borrower income and higher likelihood of default.

• A market repricing could result if property buyers incorporate the costs of climate risk into their bids for housing. 

The impact to high-risk properties could be abrupt if the market suddenly acknowledges climate risk. Climate risk 

disclosures, including disclosure of past damages or future exposure, could also raise awareness of climate risk and 

lead to repricing.

• A property could become a stranded asset if it loses a significant portion of its value.

• Together, an increase in default probability and lower property value would increase Freddie Mac’s credit risk.

Mitigation

• Properties with physical resiliency features will have lower expected damages associated with increasing physical 

hazards. This is often reflected in lower insurance costs, which reduces the burden on property owners and renters.

• A stable and reliable insurance market reassures buyers that increasing expected losses are insurable and that 

adequate coverage is available. If buyers are uncertain about insurance availability, they may price an even higher 

premium for climate risk.

• Our portfolio benefits from geographic diversification, which means that the properties securing our mortgage 

loans are exposed to different hazards and experience different timing of impact.

Risk

• Municipalities may experience adverse economic impact if hit by a severe natural disaster or by repeated disasters, 

or if any sector contributing significantly to the local economy is adversely impacted by physical risk. There may be 

outward migration from impacted areas.

Impact

• Borrowers and renters in sectors impacted by natural disasters may face greater risk of job loss or low wage growth.

• Significant outward migration could lower demand for housing and could put downward pressure on property values.

• Economic downturn where we have exposure could negatively impact property values.

• Higher unemployment and a slowing housing market could result in increased credit risk for the company.

Mitigation

• Municipal adaptation, covering a wide range of options from sea walls to emergency preparedness, can limit the 

damage caused by hazard events.

• Municipal preparation and disaster response can also reduce damages and speed recovery. Disaster relief, 

including loans to businesses, can help local economies.

• Geographic diversification makes it unlikely that impacts will be widespread across the portfolio.

Changing Expectations of Physical Hazards

Macroeconomic Impacts of Physical Climate Change

Acute

Acute

Chronic

Chronic

Risk Type:

Risk Type:

Environment
SUSTAINABILITY REPORT 2 2

Physical Risk Mitigation

Historically, the impact of physical hazards on our business has not been significant 

due to mitigating factors that keep our portfolio losses low, even when major climate 

disasters hit. Given the current effectiveness of these mitigating factors, it is important to 

consider the risk that these factors themselves could be impacted by climate change.

The Freddie Mac portfolio is geographically diversified, which makes it unlikely that 

physical hazard-driven losses occur across the portfolio simultaneously. However, an increasing number of severe events 

because of climate change may result in aggregate losses greater than what we have observed historically.

Some physical risks are not geographically well-diversified. These include policies related to resiliency, like new insurance 

standards, which could impact the costs of ownership, and required physical risk disclosures, which could impact property 

values. Both examples, however, present near- to medium-term risk but are likely to lower overall long-term physical risk.

The physical resiliency, or ability to withstand physical hazards, of buildings is an important mitigant. When severe events 

occur, physical resiliency limits the damage to the structure. Physical resiliency is achieved primarily through building codes, 

which vary by state and municipality, but can impose high resiliency standards where exposure is high, as in the case of 

Florida, which has a strict code for hurricane protection. Increasingly, building codes must consider climate change so that 

resiliency standards are maintained as hazard risks evolve. Freddie Mac offers specialized financing to support resiliency 

improvements made by our single-family borrowers, and the company continues working to define best practices to support 

the physical resiliency of housing.

When properties are damaged by severe events, insurance plays an important role in mitigating financial losses. For the loans 

we own or guarantee, we require property insurance, and, in Federal Emergency Management Agency (FEMA) Special Flood 

Hazard Areas (SFHAs), we require flood insurance. Seller/Servicers are required to review the insurance compliance of each 

loan annually and directly place required coverage should borrowers fail to maintain compliant insurance. In addition, we 

conduct periodic reviews of compliance with our flood insurance requirements and observe a very low rate of noncompliance. 

The increasing frequency and severity of hazard events expected with climate change suggests changes in insurance pricing 

or coverage are likely. The trend toward increased premiums and difficulty in obtaining adequate coverage, particularly 

for single-family homes, is already underway in select high-risk areas exposed to hurricanes, flooding and wildfires; 

such as Florida, Louisiana and California. As climate change leads to increased insurance costs or lack of availability, 

borrowers could have insufficient coverage and face high repair costs, or they may leave properties unrepaired; either of 

these could impact our credit risk. 

Freddie Mac is actively engaging with the insurance industry to identify high-risk areas and exploring solutions for 

homeowners. Challenges are also being addressed by certain state legislatures that are working to bolster private insurer 

profitably and increasing the availability of state-sponsored plans when coverage is not available through the traditional 

insurance market.

Lastly, even as physical risk grows and results in higher credit risk, Freddie Mac’s credit risk transfer programs serve as an 

additional source of risk mitigation. 

Natural disaster and physical climate risk mitigation is supported across the enterprise. We research and analyze the impact 

natural disasters have on housing and our business, we carefully consider and monitor the role of insurance, and when 

disasters affect areas where we own or guarantee mortgages, we assess our exposure and respond. As climate change 

impacts natural disaster risk, our methods to assess and mitigate risk will continue to evolve to meet the needs of our 

industry, our borrowers and our business.

Environment
SUSTAINABILITY REPORT 2 3

Environment

Transition Risks

The transition to a lower-carbon economy may expose us to credit risk by increasing 

energy prices, which may make cooling and heating and other energy usage more 

expensive and lower the discretionary income of homeowners and renters and the 

net operating income for multifamily borrowers. It may also result in expensive energy 

efficiency investments or non-compliance fines from policies targeting the overall 

emissions of the housing sector or investments needed to meet changing market 

preferences for green housing. The tables below lists transition risks, business impacts and key mitigants.

Carbon Prices and Rising Energy Costs

Risk

• Carbon prices are expected to increase with the transition to a low-carbon economy. This is expected as 

governments move to align the costs of climate change with the source of emissions.

• Carbon price policies, which are most likely to be implemented as carbon taxes, will increase energy prices.

Impact

• Households will pay higher energy prices as a result of carbon price policies. This will increase the costs 

of housing.

• Coupled with the potential for increased energy consumption as a result of rising temperatures and more extreme 

weather, this could lead to financial strain on many property owners and renters.

• Property buyers may incorporate higher energy costs into their bids for housing, which could adversely affect 

property values. This would be particularly pronounced for properties with lower relative energy efficiency.

• The burden of high energy costs could increase the probability of borrower default. This, with potentially lower 

property values, increases Freddie Mac’s credit risk.

Mitigation

• Utility and other community programs that provide energy cost assistance can help households burdened by 

rising energy costs. 

• Grid decarbonization with renewable energy lowers the exposure of local electricity generation to carbon price 

policies, which reduces the impact for property owners and renters.

• Property-level energy efficiency lowers the exposure to rising energy costs by reducing the amount of 

energy consumed.

• On-site renewable energy reduces the demand for energy and therefore reduces the exposure to carbon price 

policies and rising energy costs.

• Green financing, including green mortgage products, helps property owners make efficiency and electrification 

updates and supports investment in on-site renewable energy.

Risk Type: Policy
SUSTAINABILITY REPORT 24

Risk

• Municipalities may impose energy efficiency standards in housing that require expensive retrofits. Some laws 

may impose fines to enforce policies. The timing and nature of such policies can significantly affect the impact on 

property owners. Rushed or aggressive policies could lead to expensive unplanned retrofits.

• Homebuyers and investors may develop a preference for energy efficiency, which could grow stronger in the 

climate transition.

Impact

• Efficiency retrofits could be expensive and require property owners to take on additional debt.

• Properties not aligned with energy efficiency policies, or not aligned with market preferences, could have lower 

property values.

• We require compliance with all local laws. As laws become more costly to comply with, the pool of eligible 

mortgages may be reduced.

• Increasing property owner debt increases the likelihood of default and lower property value increases the loss we 

could face in a default event. This increases our credit risk.

Mitigation

• Affordable, accessible energy efficiency technology reduces the financial burden of improvements.

• Grid decarbonization and clean energy reduce the energy efficiency required to meet emissions targets and may 

reduce the need for aggressive efficiency policies.

• Property-level energy efficiency can lower exposure to energy efficiency policies and changing market 

preferences. Properties constructed to more recent, more efficient building codes have lower exposure.

• Certain efficiency policies may allow compliance through the addition of on-site renewables, and on-site renewables 

may be valued by property buyers and renters.

Risk

• Certain sectors will be adversely impacted by the transition to a low-carbon economy. Most notably these include 

fossil fuel industries and industries heavily dependent on fossil fuels.

• Where local economies depend on these impacted sectors, there could be higher unemployment, lower 

economic growth and lower tax revenues to support the community.

Impact

• Borrowers and renters in sectors impacted by the transition to a low-carbon economy may face greater risk of job 

loss or low wage growth.

• Economic downturn could negatively impact local property values.

• Higher unemployment and a slowing housing market could result in increased credit risk for the company.

Mitigation

• Economic diversification and investment in new industries and technologies, particularly those aligned with the 

transition to a low-carbon economy, can lower the transition risk exposure of a region.

• Portfolio diversification at Freddie Mac limits the concentration of our exposure in any region, and we do not have 

borrowers concentrated in any one sector.

Emissions Reduction Policies, Energy Efficiency Policies and Market Preferences 

Macroeconomic Impacts of the Transition to a Low-Carbon Economy

Policy

Policy

Market

Market

Risk Type:

Risk Type:

Environment
SUSTAINABILITY REPORT 2 5

Transition Risk Mitigation

Housing contributes significantly to overall greenhouse gas (GHG) emissions in the U.S., and because the technology 

needed to decarbonize housing is generally accessible, housing will likely receive early regulatory attention as cities, states 

and the country move to a low-carbon economy. 

Property-level efficiency is a key mitigant against transition risk as it limits the exposure to rising energy costs and changing 

efficiency standards. Building codes can require energy efficiency in new construction and significant renovation, which 

means improvements are made as part of regular maintenance and planned retrofits. Incentive programs that offer tax 

credits, discounts or favorable financing encourage property owners to invest in efficiency improvements.

Existing property-level energy efficiency is particularly important if policies are introduced that affect existing buildings, 

where compliance would require expensive retrofits and potentially impact property values. Policies affecting existing 

multifamily buildings have already been introduced in select cities. Freddie Mac is assessing these policies to understand 

the risk and how we can best promote energy efficiency and electrification.

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Climate Opportunities

Freddie Mac recognizes that the impacts of climate change have been disproportionately borne by the underserved 

populations we are chartered to serve. We believe that our main opportunities related to climate change are found in the 

promotion of green and resilient housing. Energy-efficient housing reduces borrowers’ exposure to changing energy costs 

and to the impacts of energy efficiency standards that are likely in a transition to a lower-carbon economy. Resilient housing 

is less likely to be affected by increasing physical risks. Together these result in more affordable and sustainable housing, 

which is critical to the success of our business and mission. 

Purchasing renewable energy credits to 

support renewable energy development 

and offset our energy consumption

Mounting new roofing systems that 

include reflective materials and 

insulation barriers to conserve energy

Composting food waste using the 

Gaia composting program

Installing more than 35 EV charging 

stations throughout headquarters

Implementing extensive 

recycling programs for batteries, 

cellphones, eyeglasses, cardboard, 

paper, commingled materials, 

yard waste, construction debris 

and electronic waste collection

Partnering with Food Rescue USA 

to deliver 11.8 tons of usable leftover 

food to local nonprofits since 

program inception

Installing new LED lighting that 

incorporates daylight harvesting 

and motion sensors

Launching the reusable Ozzi box 

program in all cafes in 2018

Utilizing reusable cups and 

compostable utensils in cafeterias

Environment

Over the last several years, Freddie Mac has implemented initiatives to address the operational 

carbon footprint at our headquarters in McLean, Virginia and our regional offices. This includes:
SUSTAINABILITY REPORT 27

Our business has responded to climate change and the transition to a lower-carbon economy primarily through the 

introduction and continued evolution of our green mortgage products. These products are intended to facilitate an orderly 

transition to more energy-efficient housing by offering favorable and convenient financing for qualified green properties and 

supporting greater affordability through reduced utility expenses. Supporting the energy efficiency of existing properties 

avoids the emissions of new construction, which achieves greater overall emissions reduction in housing when considering 

both embodied and operational emissions. Since their inception, our green mortgage programs have continually evolved, 

requiring higher standards, as we seek to increase our impact with a focus on resilience and decarbonization.

Our green programs not only help property owners and renters, they also can lower the transition risk of our portfolio. 

Energy-efficient properties have less exposure to rising energy costs and new efficiency standards, and energy efficiency 

may translate into higher property values and lower credit risk. 

Both business lines have also developed a framework to offer Green Bonds, collateralized by green mortgages, 

providing the private market with a way to invest in energy- and water-efficiency improvements in housing and increasing 

liquidity to the green-mortgage market. 

Single-Family Energy Efficiency

Focus on energy- and water-efficiency has sharpened as a means to increase home affordability, comfort and value, 

as well as to preserve natural resources. Freddie Mac advances energy- and water-efficiency in single-family homes 

through mortgage financing, appraisal data standardization and the capital markets. 

Single-Family GreenCHOICE Mortgages®

Freddie Mac introduced GreenCHOICE Mortgage® under the Duty to Serve Plan program, making it available to all eligible 

homebuyers and homeowners who may want to finance energy- and/or water-efficiency improvements that lead to utility 

cost savings. Improvement financed may be as much as 15% of the as-completed property value, and they may include 

programmable thermostats; replacement windows and doors; low-flow water fixtures; high-efficiency appliances, heating 

and air conditioning; and installation of solar panels or other renewable energy sources. GreenCHOICE Mortgages® may 

also be used to pay off existing debt on previous energy- and/or water-efficiency improvements, helping homeowners 

better manage their debt and benefit from better financing terms and rates. Freddie Mac financed more than $1 billion in 

GreenCHOICE Mortgages® from 2019 through 2022. 

To raise the visibility of energy- and water-efficient home features, Freddie Mac has been working collaboratively across 

the industry to help standardize the types of related data that appraisers and lenders gather about them. Having access to 

information highlights the importance of such features and generates greater understanding of their value; in turn, these 

insights have helped increase lenders’ interest and confidence in financing energy- and water-efficiency improvements.

Single-Family Green MBS

As a natural extension of Freddie Mac’s role in providing standards and scale to the nation’s housing markets, the company 

began to securitize select GreenCHOICE Mortgages® as part of Single-Family Green MBS and sell the Green MBS in the 

capital markets in 2021 to increase market awareness and liquidity.

Freddie Mac expanded the Single-Family Green MBS offering in 2022 through the launch of our Single-Family Green MBS 

Framework, which broadened the criteria of eligible mortgages available for securitization. Mortgages backed by newly 

constructed homes with a renewable energy source and some mortgages backed by newly constructed homes with a Home 

Energy Rating System (HERS) score now meet Freddie Mac’s requirements for our Green MBS program. This expansion of 

eligible energy-efficient mortgages will help encourage green construction and energy efficiency home improvements. 

The expansion of the program is already contributing to the growth of the Green MBS program. 

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SUSTAINABILITY REPORT 2 8

Freddie Mac regularly issues Single-Family Green MBS in the capital markets. These continued issuances from our 

Single-Family Green Bond Program brought visibility and liquidity to the market for financing environmentally sustainable 

single-family homes that help reduce climate risks and increase affordability. 

$700

in annual utility costs for each homeowner 

(representing a 31% anticipated average decrease 

in total annual utility bills for these borrowers)

approximately

3,800

We also estimated that our 2022 Single-Family 

Green MBS issuances avoided greenhouse gas 

emissions equivalent to removing nearly

cars from the road for a year 

(representing an estimated 54% decrease in emissions)

Environment

As described in our Single-Family Green MBS Framework, eligible collateral includes:

Homes with Renewable Energy

• Freddie Mac GreenCHOICE Mortgages® where borrowers use refinanced proceeds to finance energy-efficient home 

improvements. Specifically, the proceeds or portion from each refinanced mortgage paid off existing debt that was 

used to finance the purchase and installation of a renewable energy source such as solar panels. 

• Mortgages backed by newly constructed homes with a renewable energy source such as solar and geothermal.

Homes with an Energy Efficiency Rating

• Mortgages backed by newly constructed homes with a Home Energy Rating System Index score of 60 or less.

Additionally, and in collaboration with a non-profit vendor, we developed a methodology and tools for reporting on Green 

MBS performance and impact. This enables us to glean important information about the amount of energy and cost savings 

realized from the renewable improvements facilitated. 

Using this methodology, we estimated that the mortgages underlying our 2022 Single-Family Green MBS issuances saved 

an average of
SUSTAINABILITY REPORT 2 9

Multifamily Energy Efficiency

By carefully studying factors that contribute to current housing challenges, we identified opportunities to improve 

and finance workforce rental housing that benefits tenants and borrowers through lower monthly expenses, and 

simultaneously supports the environment through reduced energy and water consumption. In 2016, we launched

the Freddie Mac Multifamily Green Advantage program, including our Green Up® and Green Up Plus® loans, which 

finances property improvements that make multifamily housing more energy- and water-efficient. Since then, we have been 

a market leader in providing capital to improve workforce housing.

Green Up® / Green Up Plus®

Borrowers who commit to reduce whole property energy and/or water consumption by at least 30% with at least 15% 

reduction from energy can receive better pricing to make these improvements. Green Up® requires a Green Assessment®

(American Society of Heating, Refrigerating and Air-Conditioning Engineers [ASHRAE] Level I Energy Audit plus some 

additional requirements) and Green Up Plus® requires a Green Assessment Plus® (ASHRAE Level II Energy Audit). These 

assessments provide a property analysis with recommended improvements to reduce water and energy consumption. 

Borrowers select improvements from the Green Assessment® or Green Assessment Plus®, as applicable, that will meet the 

required savings thresholds. Borrowers are required to engage with a third-party consultant for utility data tracking and 

annual reporting.

Green Retrofits

This program is for affordable properties with energy- and/or water- efficiency improvements already made within the current 

calendar year or the previous two calendar years from when the borrower completes Form 1209: Green Retrofits certification.

Green Certified

We give discounted loan pricing for properties that have affordable rental units with any of the following nine 

industry-standard green building certifications.

1. EarthCraft, Greater Atlanta Home Builders Association & South Face

2. ENERGY STAR® for Multifamily Existing Buildings, High Rise, New Construction, EPA

3. Green Communities, Enterprise Community Partners

4. Green Globes, Green Building Initiative

5. GreenPoint Rated, Build It Green

6. Leadership in Energy and Environmental Design (LEED), US Green Building Council

7. National Green Building Standard (NGBS), Home Innovation Research Labs

8. Passive House Institute US (PHIUS) Certified

9. Passive House Institute (PHI) Certified

Green Rebate

Borrowers who do not pursue any other Green Advantage® options can receive a Green Rebate of $5,000 from Freddie Mac 

for delivering an EPA ENERGY STAR® Score with a Green Rebate.

Environment

®
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Multifamily Green Bonds

As described in our Multifamily Green Bonds Framework, Multifamily Green Bond proceeds are used to finance Green 

Up® and Green Up Plus® loans, designed to support water- and/or energy-efficiency improvements in workforce housing, 

helping the environment while lowering monthly expenses for tenants and borrowers. We publish an annual Impact Bonds 

Report, which highlights the impact from our Green Bonds, as well as additional details about our community partnerships 

that are helping to benefit our investors, tenants and property owners.

Since the program started in 2019, we have issued

$5B 189

in Multifamily Green Bonds supporting energy- and 

water-efficiency improvements across

properties

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SUSTAINABILITY REPORT 3 1

Risk Management

We continue to develop and expand our climate risk management processes with a focus on incorporating our climate risk 

research and analysis and integrating climate risk into our existing risk management framework. 

Climate Risk Identification and Assessment

Freddie Mac sees climate risk as a horizontal risk driver, meaning that we identify its impacts on other risk types rather than 

treating it as a stand-alone risk type. For example, climate change could adversely impact property values, which would 

affect credit risk. 

Risk Type Examples of Climate Drivers

Credit

• Climate change could adversely impact property values.

• Climate change could adversely impact the ability of borrowers to pay their mortgages.

• Climate change could negatively impact the businesses and financial condition of 

Seller/Servicers and increase credit exposures to those counterparties.

Market

• The market could impose a premium for the perceived climate risk of our securities.

• We could also see an impact on spreads for our bonds depending on the demand 

for green securities.

Liquidity • We may see higher borrowing costs as the result of a climate risk premium.

• Climate change could affect the value and liquidity of assets. 

Operational

• The increasing frequency and intensity of physical hazard events could lead 

to business disruption.

• Climate risk disclosures could introduce reporting risk.

Compliance

• The mitigation of and adaptation to climate change is likely to result in increased 

regulation, including new laws and governmental agency requirements. This could 

increase the potential for legal and compliance risk.

Reputational • Climate change may introduce reputational risk if the company is perceived to be 

behind in addressing climate change mitigation or adaptation.

Strategic

• Climate change can affect housing affordability and property values, which can 

challenge our business and mission.

• Strategic risk arises if the company’s policies and offerings do not evolve in response 

to climate risks.

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SUSTAINABILITY REPORT 3 2

To facilitate climate risk identification and assessment across the company, including in the review of significant business 

changes, Freddie Mac has a central climate risk classification that lists climate risk drivers. This includes specific physical 

hazards and transition risk channels with examples of their impact on various aspects of our business. This resource, along with 

targeted training, familiarizes employees with common climate risk types and where they tend to appear. 

As we develop and implement climate risk measurement, our quantitative metrics will also help to identify risks by indicating where 

climate risks are concentrated, allowing us to determine the characteristics and location attributes of borrowers and properties that 

bear the greatest risk. Moreover, we are developing physical and transition risk scenarios to assess our climate risk.

Climate Risk Management and Integration

We continue to integrate climate risk into business processes and existing risk management structures. A central part of our 

climate risk strategy is confirming that climate risk is considered in decisions throughout the business and that climate risks are 

addressed in a manner that supports our business and mission and considers the impact of climate change on underserved 

and minority communities. To support this, Freddie Mac has promoted climate risk expertise across the enterprise and 

prioritized climate research and product development within each of the business lines.

Our climate risk framework also calls for climate risk training across the company. To date, our training has included seminars, 

panels with outside experts, tactical risk assessment training and several high-level presentations designed for broad appeal 

and understanding. We are developing a formal enterprise-wide training.

Metrics

We are currently working to build our understanding of the impact climate change may have on housing, the factors that will 

worsen or improve outcomes and the effectiveness of actions that we can take to address climate risk and realize climate 

opportunity. We are dedicating resources to conduct research, obtain and analyze data and develop methodologies, 

including scenario analysis, to measure our climate risk.

In the SASB Index, as Modified section of this report are metrics for the flood zone concentration of our portfolio and metrics 

for our green program participation. For flood zone concentration, see pages 82-83. Our green program participation metrics 

reflect climate opportunity. For green programs, see the Green Bonds Issuance table on page 99.

Flood zone concentration is one measure of our physical risk exposure and flood zone designation determines whether we 

require flood insurance for a property. Monitoring this metric over time allows us to see if the concentration of loans within 

FEMA SFHAs is increasing.

Environment
SUSTAINABILITY REPORT 3 3

Social

We are Making Home Possible for families across the nation by financing 

the creation and preservation of more affordable homeownership and 

rental opportunities.

Freddie Mac’s commitment to affordable housing is central to who we are. Our continuous support – in all economic conditions 

and for traditionally underserved markets – distinguishes us from private funding sources. We promote access to housing 

and housing affordability in many ways, including programs and activities that support the achievement of our affordable 

housing goals, our Duty to Serve Plan, the Equitable Housing Finance Plan, contributions to national affordable housing funds, 

consumer education, market research and insights and partnerships with stakeholders across the housing industry.

Home is the foundation of our lives. Research shows that having a safe, affordable home has positive impacts on, among 

other things, children’s development, health and the economy overall. A home is affordable if a homeowner or renter 

spends 30 percent or less of their income on monthly rent or mortgage payment plus utilities according to the U.S. 

Department of Housing and Urban Development (HUD). But finding an affordable home is a challenge for millions of 

households nationwide. Below we highlight work we did to support equitable, affordable and sustainable housing in 2022. 
SUSTAINABILITY REPORT 3 4

Enabling borrowers to reach 

sustainable homeownership

Expanding credit access by reducing 

barriers to qualify for a mortgage

Preserving sustainable homeownership 

through economic cycles and life stages

How Freddie Mac Promotes Sustainable Homeownership

Expanding sustainable homeownership is, and has always been, at the core of our mission. To further our mission, 

Freddie Mac has deployed a number of activities designed to bolster our intentionality around expanding sustainable and 

affordable single-family credit for low- and moderate-income families. With these activities, we look for innovative opportunities 

to not only support more qualified borrowers in achieving homeownership but also help homeowners stay in their homes 

through economic cycles, life stages and financial hardships. Our work focuses on the following strategic priorities: 

Freddie Mac regularly evaluates market conditions, the credit environment and the performance of our mortgage purchases 

to help align our underwriting standards, business practices, repurchase requirements, pricing, fees and procedures with 

our mission to provide liquidity, stability and affordability to the conforming mortgage market and to promote equitable, 

affordable housing and access to credit.

In 2022, Freddie Mac made home possible for 440,000 first-time homebuyers, 

representing nearly half of our primary residence purchases. We also purchased tens of 

thousands of loans through Freddie Mac Home Possible®, our flagship mortgage product 

that helps low-income homebuyers by offering a down payment as low as three percent. 

Simplifying the home lending process 

and reducing costs for lenders, 

counselors, buyers and others

Addressing housing supply challenges 

and climate change impacts to housing

Social
SUSTAINABILITY REPORT 3 5

During 2022, Freddie Mac continued to take steps consistent with prudent risk management to provide mortgage 

leadership in the marketplace and help lenders make mortgage financing available for homeowners on terms intended to 

sustain successful homeownership. In doing so, Freddie Mac made credit policy changes and enhancements to help serve 

very low-, low- and moderate-income households, including the following:

Accessory Dwelling Unit (ADU) expansion

ADUs offer many benefits, particularly in geographic areas experiencing housing shortages. ADUs may provide more space 

for a homeowner or extended family or serve as a source of rental income. To support the growing popularity of ADUs and 

their role in increasing housing affordability, we have updated our requirements to provide more flexibility for mortgages 

secured by properties with ADUs.

We enhanced features by:

• Updating our Single-Family Seller/Servicer Guide (Guide) to expand the ADU eligibility requirements in response to 

recent zoning and ordinance changes in many geographic areas. We now allow one ADU on 2- and 3-unit properties, 

where previously a mortgage secured by a property with an ADU was eligible for sale to Freddie Mac only if the 

property was a 1-unit dwelling. 

• Updating our requirements to allow rental income generated from an ADU on a subject 1-unit primary residence to 

be considered when qualifying the borrower for a purchase or a “no cash-out” refinance mortgage, provided that 

certain requirements are met. Previously, rental income generated from an ADU on a 1-unit primary residence could be 

considered for mortgage qualification only when the borrower had a disability and the rental income was from a live-in 

aide, or when the mortgage was a Home Possible® mortgage. 

Home Possible® and HFA Advantage®

These mortgage products are well established, 

providing financing for first-time homebuyers. 

In 2022, approximately 80 percent of Home 

Possible® and HFA Advantage® mortgages 

were attributable to first-time homebuyers.

Nearly 40 percent of Home Possible®

loans purchased last year supported 

majority-minority communities.

Social
SUSTAINABILITY REPORT 3 6

• Clarifying the Guide on the allowance of a “no cash-out” refinance mortgage to help finance ADU construction or 

renovation. Our existing CHOICERenovation® mortgage offering provides an option to use a “no cash-out” refinance 

mortgage to pay off short-term financing that financed ADU renovations, including the addition or renovation of an 

ADU, that is completed prior to the note date.

Refi PossibleSM Mortgage Enhancement 

The Freddie Mac Refi PossibleSM mortgage offers more options and greater credit flexibility to assist very low-, low- and 

moderate-income borrowers in refinancing their home.

Home Possible® Mortgage Enhancements and Adjustments 

Home Possible® offers more options and credit flexibility to help very low- to low-income borrowers attain the dream of 

owning a home, with a down payment requirement of as little as three percent.

Manufactured Housing Mortgage Enhancements 

Our enhancements to manufactured housing mortgages support an affordable source of housing, particularly in underserved 

rural markets, and expand homeownership opportunities to more borrowers, including allowing the sale of manufactured 

homes on leasehold estates as provided in the new Guide Chapter 5706.

Resale Restriction Enhancements – Community Land Trusts (CLT) and Income-Based Resale-Restricted Properties 

Resale-restricted mortgages can provide permanently affordable homeownership opportunities for households with very 

low-, low-, and moderate-incomes through a shared equity model. These are typically established and managed by 

nonprofits, or by state or local governments, and help improve communities through investment, empowerment and lasting 

affordability. Our Guide enhancements include an allowed 2-unit property as a CLT mortgage.

Single-Family Affordable MBS

In October 2021, we announced a commitment to offer at least $3 billion in Single-Family affordable housing MBS by the end 

of 2022. The program was designed to have a positive social impact, supporting affordable homeownership and serving 

historically underserved markets by including loans purchased through our Home Possible®, Freddie Mac Refi PossibleSM

and/or HFA Advantage® affordable lending solutions. Each of these offerings has embedded benefits to borrowers.

We exceeded our $3 billion affordable 

housing bond issuance commitment 

by offering a total of $3.4 billion 

by year-end 2022

Social
SUSTAINABILITY REPORT 37

The funding that goes 

into project-based 

buildings is pivotal for 

people experiencing 

homelessness.

James Battee

Housing Counselor

Unhoused In Hollywood

How Supportive Housing is Combating Homelessness in LA

The Residences on Main, a permanent supportive housing development in the Skid Row neighborhood of Los Angeles, 

offers safe, sustainable housing and services to people who are unhoused. The Freddie Mac-financed project provides 

services to help residents become self-sufficient through job counseling, career support and an array of mental and physical 

supportive services.

Ruth Campbell found herself caring for her six grandchildren, between the ages of 7 and 17, as well as her adopted daughter 

with special needs. Campbell could no longer make ends meet until she discovered The Residences on Main, where she 

found stability for the first time in years. With that newfound stability, Campbell now gives back by volunteering at homeless 

shelters and empowering those around her.

SUSTAINABILITY REPORT 37

Our Mission in Action
SUSTAINABILITY REPORT 3 8

How Freddie Mac Supports the Affordable Rental Market

Freddie Mac Multifamily provides liquidity to the multifamily housing finance market and works to ensure the stability of that 

market through all economic cycles. We are working to foster conditions that make home affordable and advance opportunities 

for millions of renters throughout the country. 

A Stable Multifamily Housing Finance Market 

Freddie Mac purchases loans that support affordable and workforce housing in 

every corner of the rental market through all economic cycles. We leverage a robust 

capital markets platform to deliver continuous investment in multifamily housing and 

appropriately distribute risk. This work ensures minimal disruption to rental housing even 

in times of significant economic stress and provides a necessary condition for affordable 

housing to grow and thrive. In providing liquidity to the market, Freddie Mac works to meet Affordable Housing Goals and 

mission-driven requirements established by the FHFA scorecard. 

Create, Rehabilitate, Preserve 

The current shortage of affordable housing is driven by a shortage in all types of housing, from single-family homes to large 

multifamily developments. Although much of the existing housing stock is aging, it is also becoming more expensive. 

Freddie Mac is using its place in the market to support the creation of new supply, the rehabilitation of existing supply and 

the preservation of affordability. In 2022, the company committed to funding more than 20,000 units through forward 

commitments, exceeding the goal of 15,000 units. We exceeded our 1,000-unit goal for preservation with more than 4,200 

units. The company more than doubled its 2022 goal of 5,000 rehabilitated units and has committed to greater impact in 

future years.

Opportunities for Renters

We are using our position in the secondary mortgage market to encourage activities that 

benefit renters. Whether it is through a novel credit building program that has improved 

the credit scores of tens of thousands of renters or encouraging the use of financial 

empowerment tools that set renters up for success, we are encouraging activities in the 

market that can advance renters’ interests. 

A More Diverse, Inclusive and Equitable Multifamily Industry 

Freddie Mac is working to build connections that encourage opportunities for diverse and emerging borrowers and lenders. 

In 2022, we established a Correspondent Lender Program to provide small financial institutions with greater access to Freddie 

Mac capital. We expanded our Develop the Developer Academy to multifamily borrowers, providing a new pathway to 

our resources. The Develop the Developer program provides training and resources to real estate developers interested in 

developing affordable and sustainable housing. We also established a diverse and emerging borrower steering committee 

which we regularly convene to promote partnership and connections and inform how our business can advance inclusivity 

within the multifamily industry. 

This work is also reflected in our Equitable Housing Finance Plan, Duty to Serve Plan and other corporate initiatives, 

which are described below.

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Multifamily Social and Sustainability Bonds

We confront persistent, affordable and workforce housing challenges through innovative re-thinking that helps expand access 

to housing by involving all areas of financing. To increase our impact and attract capital to support social impact initiatives, 

we introduced Multifamily Social Bonds in 2020 to target opportunities that go deeper into our mission of supporting 

affordable housing. Also in 2020, we introduced Multifamily Sustainability Bonds, which are intended to attract capital to 

support economic mobility for residents and economic growth for communities. 

Social Bonds

As described in the Multifamily Social Bonds Framework, Social Bond proceeds are used to:

• Provide liquidity to social impact financial institutions (i.e., Community Development Financial Institutions (CDFIs), 

Housing Finance Agencies (HFAs) and Small Financial Institutions (SFIs) operating in underserved markets); or

• Finance loans for specific multifamily properties, including:

» Affordable to underserved population

» Owned and operated by Minority, Women, Disability-Owned Business (MWDOB) sponsors 

» Transitional housing

» Extremely low-income housing

» Supported by the Rental Assistance Demonstration (RAD) program

During times of market turbulence, access to liquidity is critical. One of the goals of our Social Bonds is to better support social 

impact institutions, such as CDFIs, HFAs and SFIs. These institutions need more support in economic downturns so they can 

continue addressing affordability housing challenges in their often underserved communities. One notable example from 

2022 was a $92.8 million Social Bonds transaction supporting 1,500 units across four seniors housing properties in Arizona. 

More than half of the units were affordable to seniors with incomes at or below 50% of area median income (AMI). Transactions 

like these are important, because there is an acute shortage of rental housing for low- to moderate-income seniors with fixed 

incomes that are not adjusted for inflation. 

Sustainability Bonds

The availability of affordable and workforce housing is fundamental to sustainable communities. A safe and decent place to 

live provides the foundation for creating economic opportunity for residents and communities alike. We have a long history of 

supporting sustainable communities through our financing for affordable and workforce housing in markets across the country. 

To support sustainable communities and attract capital to support economic mobility for residents and economic growth for 

communities, we issue Sustainability Bonds. The proceeds are used to finance multifamily properties that:

• Provide affordable housing to low- to moderate-income families;

• Have features and/or are located in areas that further economic opportunity for residents; and

• May include certain environmental impact features

The environmental features include properties:

• Meeting a high level of required energy- and/or water-efficiency building standards;

• Receiving a nationally recognized Green Building Certification;

• Having existing energy- and/or water- efficiency improvements; or

• That are transit-oriented developments, i.e., located within half a mile of public transportation

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A component of Sustainability Bonds is financing mixed-income housing. For the purposes of our Impact Bonds offerings, 

we consider mixed income properties to be those that have a mix of units affordable to renters earning up to 50% AMI 

and those earning above 80% AMI. Mixed-income housing can help to deconcentrate poverty and/or provide access to 

neighborhoods of opportunity for low- and moderate-income residents. This type of housing creates economic diversity 

and expands the availability of quality, affordable housing throughout an area.

In accordance with our Social Bonds and Sustainability Bonds Frameworks, we publish an annual Impact Bonds Report. 

The report highlights each of our Impact Bonds as well as many additional details about our community partnerships that 

are helping to benefit our investors, tenants and property owners.

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How Freddie Mac Supports Underserved Markets 

A primary way Freddie Mac reaches the nation’s most underserved regions is through its Duty to Serve Plan. Freddie Mac’s first 

Duty to Serve Plan spanned 2018-2021. It targeted the needs of very low-, low- and moderate-income households in three key 

areas: manufactured housing, rural housing and affordable housing preservation. 

In 2022, the company released an updated plan that will carry these activities through to 2024. By the end of this plan cycle, 

Freddie Mac estimates that its overall Duty to Serve Plan efforts will have helped make home possible and affordable for nearly 

one million households, provided tens of billions of dollars in liquidity to historically underserved markets and prepared tens 

of thousands of individuals to become homeowners. 

Manufactured Housing

From 2018 to 2021, Freddie Mac provided nearly $3.7 billion in liquidity to support 

the financing of more than 27,000 manufactured homes. In support of this work, 

we made conventional mortgage financing more accessible for manufactured homes 

titled as real property. We also expanded support for single-section homes and 

introduced CHOICEHome®, which provides conventional financing for homes known 

in the industry as CrossModTM that look much like site-built homes. To support renters, the company deployed a slate of 

groundbreaking tenant protections that are now required for all new manufactured housing community transactions. 

Freddie Mac also created one of the industry’s first Resident-Owned Community offerings, giving tenants who wish to 

purchase or refinance their own communities a clear debt financing option. 

During this 2022-2024 plan cycle, our Single-Family business, in addition to purchasing loans to support affordable access 

to credit, is undertaking initiatives to expand the supply of energy-efficient manufactured homes and to make it easier to 

finance homes, including for members of federally recognized Native tribes living on tribal lands. The Multifamily business is 

working to reach more manufactured homeowners and renters by scaling up efforts to purchase loans for those communities 

that agree to implement lease protections. 

Rural Housing 

In the first plan cycle, Freddie Mac invested more than $550 million in Low-Income 

Housing Tax Credit (LIHTC) equity in rural areas, supporting more than 4,000 units at 

69 separate properties. The company also provided nearly $12 billion in liquidity to 

support financing for nearly 90,000 single-family homes in rural areas. Freddie Mac 

also expanded our outreach to rural areas through homebuyer education programs, 

including those that target Native American communities. 

For the 2022 to 2024 plan, Freddie Mac enhanced its commitments to provide liquidity to rural America. Specifically, 

the business is targeting some of the hardest to serve markets in the country with programs that support homeownership 

among federally recognized tribe members in tribal areas and the efforts of CDFIs to originate mortgages in high-needs 

rural regions. Single-Family is continuing to support affordable mortgage lending to homebuyers and homeowners and 

Multifamily is scaling up LIHTC equity investments in rural areas.

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Affordable Housing Preservation

By the end of 2022, Freddie Mac provided nearly $42 billion in multifamily liquidity 

through its Duty to Serve Plan efforts in support of affordable housing preservation, 

impacting nearly 328,000 rental units. The company also provided over $1.8 billion 

in liquidity to support lending by small financial institutions to support their efforts to 

serve their communities. Freddie Mac also advanced opportunities for homeownership 

through shared equity arrangements that maintain long-term affordability by promoting industry standardization and 

introducing financing solutions. We also expanded support for financing home energy- and water-efficiencies that lower 

costs of homeownership. 

Building on this success, Freddie Mac purchases loans that complement federal, state and local affordable housing programs. 

The business is also increasing its support for small financial institutions, which are a key source of financing for smaller, 

affordable rental housing properties. Moreover, Freddie Mac is expanding efforts in support of shared equity homeownership 

and home energy- and water-efficiency. Freddie Mac is also leveraging its loan offerings to protect and prepare properties to 

withstand growing climate risks.

To learn more about Freddie Mac’s efforts in these underserved markets, visit the Duty to Serve Plan 

on FreddieMac.com.

rural single-family homes financed through loan purchase activities, including purchases 

20,000 from rural SFIs

Nearly

11,000 

Around

125

More than

59,000 

Approximately

20,000 

Approximately

33,000 

Close to

$190M

Almost

manufactured homes titled as real property financed through loan purchase activities

shared equity homes financed through loan purchase activities, mainly in high-cost areas

LIHTC multifamily rental units supported through loan purchase activities

Section 8 multifamily rental units supported through loan purchase activities

in LIHTC Equity investments in rural areas, supporting affordable multifamily units in 

16 states

multifamily manufactured housing community pads with tenant protections delivered 

through nearly 150 loan purchases

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2022 Duty to Serve Plan By the Numbers
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How Freddie Mac Supports Financial and Homeownership Capability

CreditSmart®

For more than 20 years, Freddie Mac has been at the forefront of borrower education with our CreditSmart® suite of financial 

capability and homeownership education resources. The multilingual courses and guides help people across the United 

States learn how to build good credit, manage money and access sustainable housing opportunities with a wealth-building 

mindset. The suite includes:

Completion of Homebuyer U satisfies the homeownership education requirement for our low down payment products and 

is available in English and Spanish. Additional resources include the Military Readiness module. In the coming year, our new 

bilingual curriculum will reach even more consumers in underserved communities.

Borrower Help Centers and Borrower Help Network 

Freddie Mac continues to maintain its Borrower Help Centers & Borrower Help Network (BHC/N) with selected 

HUD-approved nonprofit organizations in several metropolitan areas, as a single source of mortgage-related help with 

professional and tenured housing counselors. Along with the BHC/N, we work with more than 50 local and national 

nonprofit intermediaries to support Freddie Mac’s ongoing commitment to preparing prospective buyers for responsible 

homeownership and helping struggling borrowers avoid foreclosure. Given the impact of the pandemic, the BHC/N has 

been working with many clients needing to take advantage of a forbearance arrangement in order to temporarily reduce their 

monthly mortgage payment. While the need for foreclosure prevention counseling has begun to increase, the demand for 

front-end homebuyer education remains high. 

A financial 

capability curriculum 

for consumers

Revamped in 2021

Launched in 2019

A comprehensive 

homeownership education 

course to help guide 

first-time homebuyers

An interactive financial capability 

train-the-trainer program 

for practitioners. Provides 

resources to community-based 

organizations and housing 

professionals who wish to 

enhance their consumer outreach 

and financial education activities

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Revamped in 2021

Through these initiatives, we served over 

300,000 consumers in 2022, nearly 80% 

of whom were people of color.
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This being my grandparent’s home, 

I was eager to take a chance. When you 

see work being done, and then people 

actually buying the houses and moving in 

— it was worth it for us to stay.

Yvonne Gunn

Homeowner

Block-By-Block In Baltimore

Raising Home Values by Investing in Overlooked Communities 

Supported by Freddie Mac’s Block-by-Block initiative, HomeFree-USA purchases blocks of neglected homes to remodel and 

sell at affordable prices. This increases much-needed supply by improving the values of other homes in the neighborhood. 

Through the initiative, 14 aging homes have been purchased on a single block in Baltimore. 

After Block-by-Block’s work was complete, one of the renovated homes sold for more than five times a neighboring home’s 

recently appraised value. On top of the wealth-building benefits of the initiative, investments in often overlooked areas can 

make a difference in the lives of current and prospective homeowners.

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Our Mission in Action
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How We Address Racial Equity in Housing Finance

At Freddie Mac, diversity, equity and inclusion (DEI) is more than a business imperative – it’s a mindset. We are steadfast in our 

commitment to eliminate abusive and unfair lending practices. Most importantly, we are committed to encouraging equitable 

and sustainable homeownership and rental opportunities. 

Equitable Housing Finance Plan

In Freddie Mac’s 2022-2024 Equitable Housing Finance Plan, we laid out a comprehensive strategy to advance 

equitable homeownership and rental opportunities, particularly for underserved communities of color. Throughout 2022, 

we undertook concrete, meaningful actions—working alongside industry partners, trade organizations and community 

stakeholders—to begin executing on the Plan’s tactics. 

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Single-Family Equitable Housing Finance Initiatives

Freddie Mac is working to help close the homeownership gap by improving borrowers’ access to credit and reducing 

mortgage costs for homebuyers. This work includes implementing a Special Purpose Credit Program (SPCP) framework 

to expand access to mortgage funding, as well as other offerings for underserved borrowers delivered through an SPCP 

or offered separately. We are further engaging borrowers and the housing ecosystem through educational outreach and 

industry leadership.

SPCPs to Address the Homeownership Gap

We are applying a two-pronged approach in using SPCPs to make home possible for those living in or 

purchasing homes in underserved communities. First, we are partnering with lenders to purchase loans 

originated through their SPCPs. By providing liquidity to the market for these programs, lenders are able

to expand their impact. We have purchased nearly 1,800 loans through lender SPCPs to date.

We have also developed an SPCP of our own, Freddie Mac BorrowSmart AccessSM, that helps overcome one of the 

largest obstacles to homeownership: funding down payment and closing costs. The program is available through specific 

Freddie Mac Sellers for first-time homebuyers in 10 major metropolitan areas: Atlanta; Chicago; Detroit; Memphis; Miami; 

Philadelphia; St. Louis; and Houston, El Paso and McAllen, Texas. 

Our SPCP strategy is an important part of Freddie Mac’s mission-driven work to create a more affordable, sustainable 

and equitable housing finance system. 

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Responsibly Expanding Access to Credit

We have worked to increase fairness and expand access to credit, particularly for historically underserved 

borrowers. For example, our automated underwriting system, which is currently used to verify assets, 

income and employment, can now look at bank account data to identify a history of on-time rent payments

and positive cash flow activity as part of the company’s financing decisions.

After this capability became available in November 2022, Freddie Mac was able to upgrade nearly 500 loan applications 

that initially received a Caution rating to an Accept rating by considering the applicant’s positive cash flow in the credit 

decision. In considering on-time rent payments, we were able to upgrade nearly 250 loan applications that had received 

a Caution rating to an Accept rating from launch in July 2022 until the end the year.

In 2023, we will continue enhancing these efforts, which should result in approximately 17,000 additional Black and 

Latino borrowers.

Outreach and Industry Engagement

Through our affirmative outreach initiatives, we served over 300,000 consumers in 2022, nearly 80 

percent of whom were people of color, through education and counseling. We also used our social 

media and digital communications channels to promote our equity-based solutions to industry partners,

engaging and educating consumers and leveraging thought leadership to expand knowledge of the housing landscape.

Freddie Mac has continued to work with industry partners on appraisal and valuation equity concerns and solutions to 

ensure fair valuation and mitigate the potential for discrimination. We work as a core sponsor of the Appraiser Diversity 

Initiative to help increase the diversity of appraisers in the profession through education scholarships and mentorship. 

We also collaborate with the Office of the Comptroller of the Currency’s Project REACh and other industry stakeholders to 

improve lender appraisal disclosure language and appraisal support materials. 

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Multifamily Equitable Housing Finance Initiatives

Freddie Mac Multifamily emphasizes three priorities: supporting the creation, preservation and rehabilitation of multifamily 

affordable and workforce housing; increasing opportunities for renters; and increasing opportunities for emerging and 

diverse multifamily borrowers and lenders. 

Supporting the creation, preservation and rehabilitation of multifamily affordable and workforce housing 

The prolonged shortage of multifamily housing and the aging nature of the current multifamily housing 

stock disproportionately harms underserved communities. To address this problem, Freddie Mac is using 

its position in the housing market to deliver financing that supports the creation, preservation and

rehabilitation of new affordable and workforce rental housing.

In 2022, we supported the creation of more than 20,000 new workforce and affordable housing units, preserved 

affordability through our loan terms for more than 4,000 housing units and funded the rehabilitation of nearly 11,000 

workforce and affordable housing units. Freddie Mac also conducted research examining the risk and impact properties 

face as they exit the LIHTC program. 

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Increasing Opportunities for Renters

Within the multifamily housing industry, Freddie Mac is providing renters opportunities to increase social and 

economic mobility. In 2022, we supported the enrollment of more than 184,000 renters in our novel credit 

building initiative, helping more than 27,000 of those enrolled establish credit scores for the first time. To further

empower renters, we proactively marketed CreditSmart® Essentials and Coach to multifamily properties and enrolled five partner 

corporations in CreditSmart® Coach training. 

To expand access to tenant support services, we provided direct support to four Renter Resource Organizations. We also 

conducted a first-of-its-kind comparative analysis of state-based tenant protections to help guide our future efforts to support 

the availability of those protections.

Increasing Opportunities for Emerging and Diverse Multifamily Borrowers and Lenders

Freddie Mac has worked to address challenges facing emerging and diverse multifamily borrowers. 

We have worked to close the knowledge gap by enhancing the borrower-facing section of our website, 

and by expanding the Develop the Developer Academy curriculum to include 5+-unit properties. 

We have also worked to close the relationship gap. In addition to co-hosting a virtual event on the subject, we convened 

a Diverse and Emerging Borrower Steering Committee to inform how our business can advance inclusivity within the 

multifamily industry. 

Finally, we are working to close the financing gap. In 2022, Freddie Mac expanded its offerings to increase opportunities 

for smaller borrowers to grow their portfolios. Freddie Mac also launched a new correspondent relationship program that 

leverages our existing multifamily lender network to support SFIs, minority depository institutions and CDFIs. In 2023, 

we expect all Optigo® lenders to pursue an agreement with at least one correspondent.

Realizing Fairer and More Equitable Opportunities for Borrowers and Renters 

Expanding housing opportunities to all communities requires long-term planning and prudent execution. 

These equitable housing finance initiatives are part of Freddie Mac’s commitment to work across the industry to 

create opportunities for Black and Latino families who have historically lacked equitable access to sustainable

and affordable housing. We will continue to work with our partners and stakeholders to create more positive housing outcomes for 

underserved borrowers and renters of color.

FOR RENT

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Business Practices and Fair Lending

Freddie Mac is a leader in developing and promoting responsible mortgage lending practices. We work with responsible 

lenders and servicers to enhance access to affordable home mortgage financing. We have instituted a set of measures to 

protect consumers from discriminatory or predatory lending practices. These measures include our corporate policies, 

fair lending analytics, targeted fair lending reviews of policy changes and targeted mortgage products. 

The efforts we undertook to promote affordable housing, support fair lending and advance equity in our business practices 

and the real estate finance industry this year include:

Affordable Housing

Freddie Mac made several updates to Loan Product Advisor® (LPA), our automated underwriting system, to further promote 

affordability, fair lending and equity. Our enhancements included: 

• Incorporating upgrades to LPA that employ state-of-the-art techniques such as generative adversarial networks 

to search for less discriminatory alternatives in the data and increase fairness in credit decisions. These techniques 

mitigate fair lending risk by attempting to reduce disparities in accept-rate ratios while maintaining responsible 

risk parameters. 

• Modifying LPA in July 2022 to consider bank data to ensure that on-time rent payments are factored into its loan 

purchase decisions. Incorporating consideration of rent payment history into LPA enabled Freddie Mac, through 

its Sellers, to upgrade more than an estimated 250 loan applications that initially received a Caution rating to an 

Accept rating. 

• Expanding LPA’s credit decision parameters in November to include the review, through its Sellers, of a borrower’s 

bank transaction data to look for a history of positive cash flow in their bank account month-over-month. The addition 

of this capability resulted in Freddie Mac upgrading more than an estimated 500 loan applications that initially 

received a Caution rating to an Accept rating. 

• Taking action to eliminate fees for certain first-time homebuyers, low-income borrowers and mission-related loan 

programs, in order to make homeownership more affordable. 

• Continuing to explore incorporating additional alternative credit information within LPA. 

Fair Lending

Freddie Mac continued to build on its fair lending program to effectively identify, assess, monitor and mitigate fair lending 

risk; prevent the occurrence of fair lending violations; and remediate fair lending issues. Our program promotes fair lending 

across the enterprise and covers all aspects of residential real estate-related business practices for Freddie Mac’s fair lending 

activities and its divisions, departments, employees and agents. Highlights of our progress included: 

• Implementing an enterprise-wide fair lending program to effectively identify, assess, monitor and mitigate fair lending 

risk, and prevent the occurrence of fair lending violations. 

• Assigning mandatory fair lending training to all divisions that engage in fair lending business activities. 

• Publishing enterprise and divisional Fair Lending Policies. 

• Enhancing the enterprise Fair Lending Risk Assessment methodology to prioritize fair lending reviews of identified 

policies, models, practices and procedures.

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Valuation Equity 

Freddie Mac implemented several strategies to address potential undervaluation of properties in traditionally underserved 

minority communities and the potential for implicit bias in appraisals. Our efforts included: 

• Creating and staffing a new Appraisal Quality Monitoring team. 

• Deploying an enhanced undervaluation rule within Loan Collateral Advisor®, Freddie Mac’s automated tool that 

analyzes appraisal reports and provides lenders with feedback on appraisal quality and valuation risk. 

• Designing text detection capabilities to identify potentially discriminatory or otherwise inappropriate language in 

appraisal reports. 

• Updating the Single-Family Seller/Servicer Guide to clarify Seller responsibilities for appraisals and establishing 

new requirements for Servicers to maintain certain fair lending data elements. The requirements are effective for all 

mortgages originated after March 1, 2023. 

• Updating our Multifamily Seller/Servicer Guide in June 2022 to define prohibited factors and potential words that 

could indicate bias in appraisals and adding a requirement that the appraiser’s certification include a statement that 

the appraisal was conducted in compliance with all relevant laws, including the Fair Housing Act and Equal Credit 

Opportunity Act.

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Diversity, Equity and Inclusion at Freddie Mac

A strong commitment to DEI creates a stronger Freddie Mac – better positioned to serve our mission and advance equity in 

the housing industry. DEI makes us a stronger company to make home possible.

In 2022, we promoted DEI in all aspects of our business and at all levels of the organization. 

The DEI program transitioned from a department in Human Resources (HR) to a stand-alone 

division. Wendell Chambliss, a 20+ year veteran of the company, was selected as chief 

diversity and inclusion officer (CDIO) to lead the division in March 2022, reporting directly 

to the CEO. The division created a new Board-approved 2023 – 2025 DEI Strategic Plan and 

Policy while delivering on commitments associated with the 2020 – 2022 DEI Strategic Plan.

Diversity, equity and inclusion is part of 

who we are and what we do, and DEI 

makes us a stronger company to make 

home possible.

Wendell Chambliss, 

SVP and Chief Diversity and Inclusion Officer

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Our Workforce 

Attracting Talent for Today and Tomorrow

Freddie Mac’s workforce aims to reflect the people we are chartered to serve. We attract and sustain a pipeline of diverse 

candidates by partnering with various organizations, including Hispanic Serving Institutions and Historically Black Colleges 

and Universities that create career opportunities for underrepresented talent.

Reflecting the People We Serve 

Our DEI efforts are reflected in the composition of our workforce, leadership and Board of Directors. For example, we are a 

majority-minority company, which means more than 50 percent of our workforce identifies as racially or ethnically diverse. 

Freddie Mac’s Senior Operating Committee is comprised of the senior-most leader of each of our divisions and responsible 

for the daily management of the company. It is made up of 15 members; 40 percent (six) are racially or ethnically diverse, and 

20 percent (three) are women. Our Compliance, DEI, Enterprise Risk Management, HR and Single-Family Acquisitions and 

Portfolio & Servicing functions are led by executives who are people of color. Our HR, Internal Audit and Legal divisions are 

led by women. Freddie Mac has a 13-person Board; 38 percent (five) are racially diverse, and 23 percent (three) are women. 

The chair of our Board of Directors is a racially and ethnically diverse woman. 

Anti-Discrimination Policy

We are committed to equal employment opportunity 

regardless of race, color, national origin, ethnicity, gender, 

gender identity/expression, sexual orientation, marital 

status, pregnancy, religion, age, disability, veteran status, 

genetic information and other characteristics protected by 

law. Freddie Mac’s Employee Code of Conduct as well as our 

Equal Employment Opportunity (EEO), Anti-Harassment and 

Reasonable Accommodation policy prohibit discrimination 

and harassment of any type. All employees are required to 

complete bi-annual anti-harassment training.

We provide employees and applicants with multiple avenues 

to report concerns. All EEO complaints are taken seriously 

and investigated by qualified investigators in an objective 

and timely manner, without bias or prejudice. Freddie Mac 

strictly prohibits retaliation against employees or applicants 

who file a complaint under our EEO Policy or who participate 

in an investigation of potential violations of such policy. 

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Pay Equity 

Freddie Mac has long been committed to equitable pay practices, helping ensure employees are paid similarly for similar 

work. In 2019, we stopped asking for salary history for job seekers. We also do not disclose the salary history for internal 

candidates. We regularly evaluate our compensation practices and each year we conduct a formal pay equity study to 

determine whether any pay disparities are apparent based on gender, race or ethnicity, after accounting for factors such as 

role, level and experience. We have enhanced our pay equity best practices by implementing company-wide pay range 

transparency for all job postings and employees. All these efforts ensure that employees are paid similarly for similar work 

regardless of gender or race or any other protected trait. 

Building Community 

Freddie Mac’s 10 business resource groups (BRGs) foster a culture of community, collaboration and professional 

development while advancing the company’s mission and our DEI Strategy. These voluntary employee-led groups cultivate 

unique development, learning and networking opportunities that create a sense of “home” at Freddie Mac.

The BRGs offer over 150 leadership roles. They partner directly with business lines to develop initiatives, host high-impact 

events and produce mission-driven results while giving back to our communities through service projects and donation 

drives.

BRGs evolved from an Employee Resource Group structure to forge an even stronger link between DEI and business results. 

This evolution connects a network of talent across the company allowing BRG teams to work with colleagues, other BRGs 

and senior leaders beyond core daily responsibilities.

In 2022, BRGs delivered over 40 programs and community service events to help drive and embed DEI in our culture. 

Our current groups include:

Abilities

Military 

Appreciation

ARISE

Pride

Green

Rising Leaders

HOLA

WIN: Women’s 

Interactive 

Network

InspirASIAN

Working 

Parents

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Employee Engagement and Well-Being

Mental Health Management

Our goal is for our workforce to perform at their best. We offer a suite of industry-leading benefits that support our 

employees’ total well-being: physical, mental and financial. We want our employees and their loved ones to have support 

when facing a physical, mental and/or financial concern. That is why we offer: medical and dental insurance, financial, fitness 

center and extensive mental health benefits through our healthcare plans; an Employee Assistance Program that provides 

free and confidential 24/7 support for certain personal or professional problems; and three events throughout the year 

designed to increase mental health awareness and support. We have also partnered with the National Alliance on Mental 

Illness (NAMI) by joining its StigmaFree campaign to have policies, education and training that promote a mentally healthy 

and supportive workplace. 

Employee Learning & Development 

Employee learning and development is a cornerstone of Freddie Mac’s corporate priorities and strategy to empower our 

employees to expand their perspectives and opportunities while advancing our mission. Our philosophy is to offer and 

promote learning and development opportunities for all employees through a comprehensive learning management 

system (FMYou); it offers virtual and instructor-led classes. We also offer all employees an Education Assistance Program that 

supports more tailored learning needs.

Through LinkedIn Learning, our primary on-demand content vendor, employees have access to 8,500+ courses, including 

62 microlearning videos and 16 full-length courses on a variety of ESG topics. Our CSO also curated ESG-related content 

entitled Environmental, Social, and Governance (ESG) Playlist, which is housed in FMYou. This playlist includes recordings of 

in-house sessions, roundtables, resource documents and LinkedIn Learning on-demand content.

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Growing Talent 

At Freddie Mac, we provide mentorship opportunities for employees at every stage in their career.

ASCEND Greater Washington 

InspirASIAN partners with ASCEND to nominate a member for a high touch, 3-month mentoring 

program from a pan-Asian executive in the greater Washington area. The program includes 

practical “how-tos,” hands-on training and a safe environment to speak freely, exchange ideas 

and solicit feedback.

Ellevate 

WIN partners with Ellevate, a global professional women’s network dedicated to building up 

women through education, inspiration and opportunity. WIN offers three Ellevate memberships 

— one for young professionals, one for mid-career professionals and one for upper-level 

managers. This partnership provides access to valuable career-building resources such as 

leadership training, interactive webinars, networking events and mentorship “Squads.”

Finance Mentor Program 

Freddie Mac’s Finance division offers a 12-month mentorship program to connect early career 

professionals with higher-level mentors to help guide their career paths. 

HOLA Professional Advisors Program 

HOLA started the Professional Advisors Program to foster professional development, problem 

solving and networking opportunities, while increasing exposure to insights and perspectives from 

various divisions. The program is open to all HOLA BRG members, as well as participants outside 

the BRG if space allows. Each mentee is assigned an advisor they meet with on a regular basis.

I...Circle 

I...Circle was created to promote personal and professional development, encourage a culture of 

knowledge sharing and foster community between mentors and mentees. The program is open 

to all InspirASIAN members and provides a yearlong mentoring relationship in either a one-onone or group setting.

Legal Division Mentorship Program 

The Legal Division’s Mentorship Program is designed to encourage and accelerate the growth of 

any Legal employee while also facilitating the transition and acclimation of new employees into 

the Division. Pairings match mentees with more tenured company attorneys or employees and 

focus on mentee-driven goals.
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Level Up

Created by ARISE, this formal mentoring program matches mid-career professionals 

(i.e., manager through senior director level) with senior executives and provides a personalized, 

confidential forum for career development discussions. 

Latinos in Transition (L.I.T.)

L.I.T. is a development program for all entry level HOLA members. L.I.T. empowers analysts 

through the transition from college to their new corporate careers, greatly considering the 

first-generation Latino/a/x experience. It includes a series of formal training and workshops. 

Multifamily Coaching Program

Since 2020, more than 250 employees in Freddie Mac’s Multifamily division have participated 

in its formal career coaching program. The program offers different approaches tailored to the 

skillsets and goals of its three groups: people leaders, women and minority employees and other 

employees interested in maximizing their careers. 

Polaris

Created by ARISE, the three-month Polaris program provides entry to mid-level ARISE members 

with a customized curriculum, mentoring and coaching for career growth and development.

Propel and Excel 

An enterprise-wide mentoring initiative, this program equips participants with skills needed 

to perform at their highest capability while building a culture of mentorship in the company. 

Rising Leaders

In addition to the mentorship programs offered within InspirASIAN and WIN, Freddie Mac 

offers a BRG specifically focused on professional development. The Rising Leaders BRG 

offers programming designed to empower early- and mid-career professionals, including an 

annual Leadership Summit, a Business Case Competition and other BRG co-sponsored events 

throughout the year.

Single-Family College Cohort Mentor Program

All Single-Family college analysts are given a mentor to guide them through the transition of 

starting their first job. The mentors are volunteers from the prior year’s cohort and serve as 

resources whom the college analysts can relate to and confide in.

Social
SUSTAINABILITY REPORT 5 8

Supplier Diversity 

At Freddie Mac, we attract and develop diverse suppliers, while encouraging our primary suppliers to use diverse suppliers 

in support of Freddie Mac business engagements. We actively promote diverse suppliers during competitive bidding events 

leveraging robust technology solutions to identify new sources of diverse suppliers to meet demand. 

In 2022, diverse suppliers accounted for nearly 15 percent of our total supplier spend. In addition, we established a Tier 2 

supplier diversity program that encourages our primary suppliers to use diverse suppliers as part of their business engagements 

with us. We are also committed to helping diverse suppliers succeed through our development and outreach program. 

For example, through our Supplier Academy, we help diverse suppliers strengthen their business to be more competitive for 

opportunities with Freddie Mac and other companies. 

From its inception in 2016 through 2022, Freddie Mac has paid $109 million to diverse Supplier Academy graduates.

Financial Transactions

We engage MWDOBs in Freddie Mac’s capital markets transactions and mortgage purchase transactions. Through our 

capital markets programs, we provide training, access and opportunities to win business. These activities better position 

diverse firms for future opportunities by familiarizing them with our capital markets programs and facilitating relationship 

building with investors. In addition, we raise awareness of, and encourage and assist participation in, Single-Family and 

Multifamily products, programs and services among current and potential MWDOB Seller/Servicers and Lenders. Last year, 

our credit risk transfer teams acquired credit protection on more than $50 billion in unpaid principal balance of mortgage 

loans sub-brokered by a certified minority-business enterprise.

Social
SUSTAINABILITY REPORT 5 9

Governance

Good governance is the foundation of everything we do. It is woven into our 

values and drives our work. We believe strong governance goes beyond legal 

and regulatory compliance to acting with integrity. We are striving to build

an environment where empowerment and accountability go hand in hand and we provide 

stability to the housing industry through outstanding risk management.

Regulatory Engagement

As a GSE, Freddie Mac’s operations are subject to a range of regulatory requirements to ensure safe and sound operations. 

Since 2008, FHFA has been our primary regulator, responsible for the supervision, regulation and housing mission oversight 

of Freddie Mac. We are also subject to requirements established by a number of additional regulatory agencies including 

HUD for fair lending and the SEC for financial and current event reporting. Our Senior Preferred Stock Purchase Agreement 

with the Department of Treasury also sets limits on our business. 

Corporate Governance

Conservatorship

Since September 2008, we have been operating in conservatorship, with FHFA as our Conservator. The conservatorship 

and related matters significantly affect our management, business activities, financial condition and results of operations. 

For more on FHFA’s Conservatorship, see our 2022 Annual Report on Form 10-K.

As our conservator, FHFA has defined a number of Conservatorship Scorecard metrics for Freddie Mac to support a range 

of ESG-related initiatives.

Board of Directors

We are committed to best practices in corporate governance. Our Board of Directors has adopted the Corporate 

Governance Guidelines (the Guidelines), which embody many of our long-standing practices, policies and procedures; 

they are available on our website. 

Our Board of Directors reviews the Guidelines annually and regularly assesses them against the regulatory and legislative 

environment in which we operate, as well as evolving best practices.

The Guidelines are designed to provide for effective collaboration between management and the Board of Directors. 

We have instituted the following specific corporate governance practices:

• Our Board of Directors has an independent Non-Executive Chair, whose responsibilities include presiding over Board 

meetings and executive sessions of the non-employee or independent directors.

• Each of our directors is independent, except for the CEO. 

• Each of the Audit, Compensation and Human Capital (CHC), Nominating and Governance, Mission and Housing 

Sustainability, Operations and Technology and Risk Committees consists entirely of independent directors. 
SUSTAINABILITY REPORT 6 0

• Each committee operates pursuant to a written charter that has been approved by the Board of Directors. 

• Independent directors meet regularly without management.

• The Board of Directors and each of the committees conduct an annual self-evaluation.

• New directors receive a full orientation regarding the company and issues specific to the committees to which they 

have been appointed. 

• All directors are provided with access to, and are encouraged to utilize, third-party continuing education. 

• Management provides the Board of Directors and its committees with in-depth technical briefings on substantive 

issues affecting the company. 

• The CHC Committee reviews management talent and succession planning at least annually.

Codes of Conduct

We have separate codes of conduct for our employees and Board members. The Employee Code of Conduct serves as the 

code of ethics for all employees and sets critical expectations for the actions we take and competencies we demonstrate. It 

outlines the responsibilities that we have to each other, our business partners, our competitors and our customers. Our Code 

of Conduct reinforces ESG integration into our business and operations. Freddie Mac is not just a leader in the industry, we 

are also good stewards of the resources entrusted to us. All employees, including senior executives and financial officers, 

are required to sign an annual acknowledgment that they have read the Employee Code of Conduct and agree to abide by it 

and will report suspected deviations. 

Those who manage people at Freddie Mac – all people managers, including senior management and executives – 

have a special responsibility to lead the way. We expect all people managers to:

• Act as role models

• Champion a culture of integrity and compliance

• Promote high ethical standards

• Recognize and reward behaviors that exemplify our Values and our Code of Conduct

• Make sure employees are appropriately trained and competent

• Assist in enforcing the Code of Conduct

• Report potential violations of the Code in a timely manner

When joining our Board of Directors, our directors acknowledge that they have reviewed and understand the Board of Directors 

Code of Conduct and agree to be bound by its provisions, and each director re-executes such confirmation annually.

Copies of our Employee and Board of Directors Codes of Conduct are available, and any amendments or waivers that would 

be required to be disclosed are posted on our website.

Governance
SUSTAINABILITY REPORT 6 1

Audit

Committee

Chief

Financial

Officer

ESG Steering

Committee

Enterprise

Risk Committee

& Climate Risk

Advisory Group

Mission &

Housing

Sustainability

Committee

Corporate

Diversity, Equity

& Inclusion 

Committee

Chief

Risk

Officer

Chief

Administrative

Officer

Chief

Information

Officer

Chief

Diversity &

Inclusion

Officer

General

Counsel

Risk

Committee

Board of

Directors

Nominating &

Governance

Committee

Operations &

Technology

Committee

Relevant Management Committees & Advisory Group

Reporting Channel

Board Committees

Mission &

Housing

Sustainability

Committee

Compensation

& Human Capital

Committee

Governance

ESG Governance 

The Chief Financial Officer (CFO) oversees the CSO, including the development of our corporate ESG strategic framework. 

The CFO regularly reports on ESG priorities and progress to the Board of Directors. 

Board Governance

The effective management of ESG-related risks and opportunities supports our mission and helps create long-term value for our 

stakeholders. Our ESG governance structure is designed to promote accountability, transparency and ethical behavior, consistent 

with our corporate values and priorities. As our ESG strategic framework evolves, the governance structure also evolves. 

Our current ESG governance structure reflects the integration of our ESG priorities across the company and includes the 

following Board committees that oversee various aspects of our work. 
SUSTAINABILITY REPORT 6 2

Audit Committee Oversees significant ESG reporting and disclosures, as well as assists the Board in its 

oversight of Freddie Mac’s Compliance program, including the Code of Conduct. 

Risk Committee

Oversees Freddie Mac’s enterprise-wide risk management framework, including 

exposure to the potential negative impacts of climate change, and oversees the 

development and implementation of Freddie Mac’s climate risk framework. 

Mission and Housing 

Sustainability Committee

Oversees the development, planning, implementation, performance 

and execution of Freddie Mac’s strategies and significant initiatives related to 

delivering on its commitment to promote affordability, equity and sustainability 

in housing. Responsibilities include the review of sustainability initiatives with 

climate change implications or impacts. 

Compensation and

Human Capital Committee

Oversees Freddie Mac’s programs, strategies and initiatives related to diversity, 

equity and inclusion; talent development; and executive compensation.

Nominating and 

Governance Committee Oversees corporate governance matters.

Operations and 

Technology Committee

Oversees information, operations and technology strategies and information; 

operational resiliency; and supplier third-party programs, including implementation 

of technology initiatives critical to Freddie Mac’s achievement of its mission, strategy 

and business objectives.

Governance

Board Committees
SUSTAINABILITY REPORT 63

ESG Steering Committee

Reporting through the CFO, the ESG Steering Committee is an officer-level, 

cross-functional committee that was formed to define ESG strategic objectives, 

identify and prioritize ESG-related activities, determine our target ambition 

and increase awareness of ESG impacts and opportunities. 

Enterprise Risk Committee

Reporting through the Chief Risk Officer, this management committee was created 

to review and discuss business-specific and enterprise-wide risks, mitigation actions 

and risk matters.

Climate Risk Advisory Group

Reporting to the Enterprise Risk Committee chaired by the Chief Risk Officer, 

this group was created to engage senior leadership on climate risk topics and facilitate 

cross-divisional collaboration and decision-making around climate risk-related activities. 

In 2023, we created a Climate Risk Steering Committee to replace the Climate Risk 

Advisory Group. The Climate Risk Steering Committee is chaired by the Chief Risk 

Officer and continues to engage senior management, including the business heads, 

on climate risk topics and promotes the integration of climate risk into risk management 

processes and business decisions.

Mission and Housing 

Sustainability Committee

Reporting through the Chief Administrative Officer up to the Board committee of 

the same name, this management committee was created to enhance discussions of 

significant affordable housing-related issues in a forum of cross-functional executives.

Corporate Diversity, Equity 

and Inclusion Committee (CDEIC)

Led by the CDIO, the CDEIC serves as a forum for senior management to review the 

performance of the DEI program with particular focus on workforce diversity, supplier 

diversity and financial transactions. The CDEIC provides guidance and advice to help 

facilitate the integration of diversity, equity and inclusion in all aspects of our business 

and activities.

Management Committees

While all the divisions are responsible for implementing ESG strategic initiatives, the company has four specific management 

committees and an advisory group that regularly discuss and influence various aspects of our ESG work:

Governance
SUSTAINABILITY REPORT 6 4

ESG Ties to Compensation

We hold leadership accountable for advancing the company’s ESG-related efforts. Compensation decisions for all 

employees factor in performance against the ESG goals on our corporate scorecard (including climate risk management 

and sustainability, DEI and mission-related goals).

In addition, compensation decisions for senior executive officers reflect FHFA’s assessment of our company’s performance 

against the Conservatorship Scorecard, which contains FHFA’s priorities for promoting sustainable and equitable access to 

affordable housing, as well as energy- and water-efficient housing.

To further align compensation with our company’s ESG-related efforts, all officers have an annual individual objective to 

advance equitable and sustainable housing. Each officer’s performance and other objectives are considered when making 

compensation decisions. 

Governance
SUSTAINABILITY REPORT 6 5

Risk Management

To achieve our mission of providing liquidity, stability and affordability to the U.S. housing market, we take risks as an integral 

part of our business activities. Risk is the possibility that events will occur that adversely affect our financial strength, safe and 

sound operations and ability to achieve our mission, strategic and business objectives. Risk can manifest itself in many ways 

and the responsibility for risk management resides at all levels of the company. We seek to take risks in a safe and sound, 

well-controlled manner to earn acceptable risk-adjusted returns on a corporate-wide, divisional, and, where applicable, 

transaction basis. Our goal is to maintain an effective risk culture where employees are risk aware, collaborative, transparent 

and individually accountable for their decisions, and to conduct business in an effective, legal and ethical manner.

We utilize a risk taxonomy to define, classify and report risks that we face in operating our business. These risks have 

the potential to adversely affect our current or projected financial and operational resilience. Risks are classified into the 

following categories:

These risks are factored into our business decisions, as appropriate, with legal, strategic and reputation risks managed 

outside of the three lines of defense. For more discussion of these and other risks facing our business, see our 2022 Annual 

Report on Form 10-K. 

The enterprise risk framework (the Framework) defines how we manage risk to achieve our mission, strategic and business 

objectives. By serving as the basis for managing risk in a consistent, effective and efficient manner, the Framework supports 

our financial strength and safe and sound operations through a range of stressful conditions. The Framework is implemented 

through Freddie Mac’s enterprise risk management (ERM) program, which consists of our enterprise-wide risk management 

practices and processes.

The Framework includes the following components:

• Risk Culture - Risk culture is the set of corporate values, competencies and behaviors related to risk taking and risk 

management at Freddie Mac. Management supports an effective risk culture by establishing clear risk objectives, 

assigning accountability and setting a tone at the top so that employees feel empowered to challenge business 

Governance

Market Risk

Legal Risk

Credit Risk

Compliance Risk

Liquidity Risk

Strategic Risk

Operational Risk

Reputation Risk
SUSTAINABILITY REPORT 6 6

decisions without fear of negative consequences. An effective risk culture promotes an environment where employees 

who take and manage risks for the company are risk aware, collaborative and transparent.

• Risk Governance - Risk governance is the set of corporate requirements and processes that must be followed to make 

and implement risk decisions across the company. Effective risk governance establishes a reporting and escalation 

path for risks and issues across the enterprise. Freddie Mac’s risk governance structure provides forums for transparent 

communication of risks and issues, as well as risk management and control activities. 

• Risk Appetite - Risk appetite is the level of risk, both in aggregate and by risk type, within the company’s risk capacity 

that the Board of Directors and management are willing to assume to achieve the company’s strategic goals. The 

risk appetite is integrated and aligned with the strategic plans for the company and each business division. The 

risk appetite is approved by the Board of Directors and then by FHFA as Conservator and consists of qualitative risk 

appetite statements and quantitative metrics with limits. 

• Risk Identification, Assessment, Control and Monitoring Processes - Our ERM Program supports risk management 

through enterprise-wide practices and processes designed to identify, assess, control, monitor and report on all risks, 

including emerging, significant and top risks. 

• Risk Reporting - Our risk management framework requires accurate and timely reporting needed for managing risks. 

Regular reporting is provided to senior management and to the Board of Directors, or appropriate Board committees, 

at an aggregate level to provide a comprehensive view of the company’s risk position; its adherence to established 

Board limits and management thresholds; risk drivers; emerging, significant and top risks; internal control deficiencies; 

issues and their remediation status; and stress testing and scenario analysis. 

FHFA has increased supervisory expectations related to how risk is managed and overseen by management and the Board 

of Directors, and specifically the role of ERM to effectively challenge and provide independent risk oversight. As a result, 

we must continue to invest in our risk management practices to meet these expectations.

Governance
SUSTAINABILITY REPORT 67

Data Security

Our operations rely on the secure, accurate and timely receipt, storage, transmission and other processing of confidential 

and other information (including personal information) in our systems and networks and in those of our customers, 

counterparties, service providers and financial institutions. 

Cybersecurity risks for companies like ours have increased significantly in recent years. Like many companies and government 

entities, from time to time we have been, and expect to continue to be, the target of attempted cyberattacks and other 

information security threats, including those from nation-state and nation-state supported actors. We continue to invest in the 

cybersecurity area to strengthen our capabilities to prevent, detect, respond to and mitigate risk, and protect our systems, 

networks and other technology assets against unauthorized attempts to access confidential or other information (including 

personal information) or to disrupt or degrade our business operations. We have obtained insurance coverage relating to 

cybersecurity risks. However, this insurance may not be sufficient to provide adequate loss coverage, or the insurer may deny 

coverage for a particular claim, and such insurance may not always be available to us on commercially reasonable terms or at all. 

Although to date we have not experienced any cyberattacks resulting in significant impact to our company, there is no assurance 

that our cybersecurity risk management program will prevent cyberattacks from having significant impacts in the future. 

Insider threats also remain a significant risk as the workforce diversifies to include contractors, remote workers and part-time 

employees. Our third-party vendors and their supply chain connections remain another significant risk. Although we have 

strengthened our capabilities over critical third-party monitoring and surveillance with continued focus on detecting 

deliberate actions such as malicious exploitation, theft or destruction of data (including personal information), as well as the 

compromise of our systems or networks, our control over the security posture of our third-party vendors and their supply 

chain connections remains limited. 

Potential cybersecurity threats are changing rapidly and advancing in sophistication. We may not be able to protect our 

systems and networks, or the confidentiality of our confidential or other information (including personal information), 

from cyberattacks and other unauthorized access, disclosure and disruption. For additional information, see Risk Factors - 

Operational Risks in our 2022 Annual Report on Form 10-K.

Helping protect data and information is a 

responsibility that is shared by everyone at 

Freddie Mac. Our Employee Code of Conduct 

and related policies and standards establish 

clear expectations, procedures and other 

requirements for how we help protect and 

manage information.

Governance
SUSTAINABILITY REPORT 6 8

Appendix

Scope of SASB Alignment and Reporting 

Freddie Mac is issuing this report in consideration of Industry Standards Version 2018-10 issued by the SASB and additional 

criteria defined by management for presenting the disclosures. The metrics are as of or for the years ended December 31, 

2022, 2021, and 2020, other than certain qualitative metrics, denoted by an * in the SASB Index and Metrics, as Modified 

table, which reflect information for 2022, unless otherwise indicated. In some instances, totals may not sum due to rounding. 

Where a metric represents some amount greater than zero, but less than one, we have used the “—” for clarity.

SASB encourages entities to use the standards to guide disclosures even in the event that certain disclosure topics and/

or associated metrics are omitted or modified. Our disclosures, with respect to those standards, are based on the industry 

within the Financials sector that is most closely aligned with our business: Mortgage Finance. Additionally, within the 

Financials sector, we have responded to relevant metrics within the Commercial Banks and Investment Banking and 

Brokerage industries standards. Where applicable, Freddie Mac has made certain modifications to SASB metrics to align 

with our operations in the secondary mortgage market. These modifications are described in the SASB Index and Metrics, 

as Modified table below and are further explained in footnotes on the respective disclosure page. Furthermore, Freddie Mac 

has omitted certain SASB Mortgage Finance metrics. The nature and rationale for each omitted metric is described in further 

detail in the table below. 

Management Assertion

Management of Federal Home Loan Mortgage Corporation (Freddie Mac) is responsible for the completeness, accuracy and 

validity of the Freddie Mac Metrics (metrics) referenced in the Sustainability Accounting Standards Board (SASB) Index and 

Metrics, as Modified table and included in the SASB Metrics, as Modified section of this Freddie Mac Sustainability Report 

(excluding the number of rental units financed metrics presented as part of the FN-IB-410a.2 metric) as of or for the years 

ended December 31, 2022, 2021, and 2020, other than certain qualitative metrics, denoted by an * in the SASB Index and 

Metrics, as Modified table, which reflect information for 2022, unless otherwise indicated. Subsequent to the issuance of 

Freddie Mac’s SASB Report 2021 / 2020, Freddie Mac changed the criteria related to the FN-MF-270a.1 metric. Freddie 

Mac retrospectively updated the 2020 and 2021 metrics included herein based on the updated criteria. The change in 

criteria is described within the applicable footnote. All hyperlinks included herein were effective prior to the issuance of this 

Report. Due to rounding, totals may not foot or add up to 100%. Where a metric represents some amount greater than zero, 

but less than one, we have used the “—” for clarity.

Management asserts that the metrics are presented in accordance with the assessment criteria set forth on pages 69 to 72

and the footnotes to the metrics presented on pages 73 to 99. Management is responsible for the selection of the criteria, 

which management believes provide an objective basis for measuring and reporting on the metrics.
SUSTAINABILITY REPORT 6 9

SASB Criteria Management Defined/Specified Metric

SASB Code SASB Metric Modified, Not Applicable, 

or Omitted Freddie Mac Metric

FN-MF-270a.1

(1) Number and (2) value 

of residential mortgages 

of the following types: (a) 

Hybrid or Option Adjustablerate Mortgages (ARM), (b) 

Prepayment Penalty, (c) 

Higher Rate, (d) Total, by FICO 

scores above or below 660

Modified to define “Higher 

Rate”to conform with the 

Truth in Lending Act and to 

also include “FICO 

not available”

(1) Number and (2) value 

of residential mortgages 

of the following types: (a) 

Hybrid or Option Adjustablerate Mortgages (ARM), (b) 

Prepayment Penalty, (c) 

Higher Rate, and (d) Total, by 

FICO scores above or below 

660, and FICO not available, 

including as a percentage of 

total population

FN-MF-270a.2

(1) Number and (2) 

value of (a) residential 

mortgage modifications, 

(b) foreclosures, and (c) 

short sales or deed in lieu of 

foreclosure, by FICO scores 

above and below 660

Modified to also include 

“FICO not available” 

We define “foreclosures” 

to include only completed 

foreclosures 

(1) Number and (2) value 

of (a) residential mortgage 

modifications, (b) foreclosures, 

and (c) short sales or deed in 

lieu of foreclosure, by FICO 

scores above and below 660, 

and FICO not available

FN-MF-270a.3

Total amount of monetary 

losses as a result of legal 

proceedings associated with 

communications to customers 

or remuneration of loan 

originators

Omitted, as Freddie Mac does not originate mortgage loans

FN-MF-270a.4* Description of remuneration 

structure of loan originators

Not applicable, as Freddie 

Mac does not originate 

mortgage loans

Although we do not 

originate mortgage loans, 

we include context regarding 

requirements for our 

Seller/Servicers that may 

affect remuneration practices 

for loan originators

FN-MF-270b.1

(1) Number, (2) value, and (3) 

weighted average Loan-toValue (LTV) ratio of mortgages 

issued to (a) minority and (b) 

all other borrowers, by FICO 

scores above and below 660

Modified to increase 

transparency by providing 

granularity aligned with the 

Home Mortgage Disclosure 

Act (HMDA) demographic 

naming conventions 

Modified to also 

include “FICO not available”

(1) Number, (2) value, and (3) 

weighted average Loan-toValue (LTV) ratio of mortgages 

purchased and acquired 

by (a) American Indian or 

Alaska Native, (b) Asian, (c) 

Black or African American, 

(d) Native Hawaiian or Other 

Pacific Islander, (e) Hispanic 

or Latino, (f) White - nonHispanic or Latino, (g) Total 

Minority Borrowers, (h) Race 

not reported, (i) Ethnicity not 

reported, and (j) Minority not 

reported, by FICO scores 

above and below 660, and 

FICO not available

Appendix

SASB Index and Metrics, as Modified 
SUSTAINABILITY REPORT 70

SASB Criteria Management Defined/Specified Metric

SASB Code SASB Metric Modified, Not Applicable, 

or Omitted Freddie Mac Metric

FN-MF-270b.2*

Total amount of monetary 

losses as a result of legal 

proceedings associated with 

discriminatory mortgage 

lending

Modified to: 

(1) replace “mortgage lending” 

with “mortgage practices” 

because Freddie Mac does 

not originate mortgage loans 

or lend money directly to 

borrowers, and (2) establish 

a threshold of $100,000 

for monetary losses, which 

are defined as settlements, 

judgments or fines

Settlements, judgments, or 

fines exceeding $100,000 as 

a result of legal proceedings 

associated with discriminatory 

mortgage practices

FN-MF-270b.3*

Description of policies and 

procedures for ensuring 

nondiscriminatory mortgage 

origination

Not applicable, as Freddie 

Mac does not originate 

mortgage loans

Although we do not originate 

mortgage loans, we include 

context regarding our policies 

and procedures to promote 

nondiscriminatory mortgage 

origination practices

FN-MF-450a.1

(1) Number and (2) value of 

mortgage loans in 100-year 

flood zones

Modified to (1) contextualize 

data and increase transparency 

by including single-family and 

multifamily mortgage loans 

as well as Real Estate Owned 

(REO) properties and book 

value for each category and 

(2) include mortgages held 

for sale

We define “mortgage loans 

in 100-year flood zones” and 

“properties in 100-year flood 

zones” as loans with buildings 

or properties that are located 

in areas designated by FEMA 

as special flood hazard 

areas and that require flood 

insurance at origination

(1) Number and (2) value of 

mortgage loans or properties 

in 100-year flood zones 

by (a) single-family and (b) 

multifamily, including as a 

percentage of total mortgage 

loans or properties in the 

population

FN-MF-450a.2*

(1) Total expected loss and 

(2) Loss Given Default (LGD) 

attributable to mortgage loan 

default and delinquency due 

to weather-related natural 

catastrophes, by 

geographic region

Modified to address data 

availability

Description of how weatherrelated natural catastrophes 

are considered in determining 

total expected loss and loss 

given default

FN-MF-450a.3*

Description of how 

climate change and other 

environmental risks are 

incorporated into mortgage 

origination and underwriting

Not applicable, as Freddie 

Mac does not originate 

mortgage loans

Although we do not 

originate mortgage loans, 

we include context regarding 

requirements for our 

Seller/Servicers with respect 

to homes located in areas with 

higher environmental risk

Appendix
SUSTAINABILITY REPORT 7 1

SASB Criteria Management Defined/Specified Metric

SASB Code SASB Metric Modified, Not Applicable, 

or Omitted Freddie Mac Metric

FN-MF-000.A

(1) Number and (2) value of 

mortgages originated by 

category: (a) residential and 

(b) commercial

Omitted, as Freddie Mac does not originate mortgage loans

FN-MF-000.B

(1) Number and (2) value of 

mortgages purchased by 

category: (a) residential and 

(b) commercial

Modified to increase 

transparency by including 

multifamily mortgage 

purchase information

The portion of the metric 

related to commercial 

mortgages is not applicable

We do not purchase 

commercial mortgages

(1) Number and (2) value of 

mortgages purchased by 

category: (a) single-family and 

(b) multifamily

FN-CB-230a.2*

Description of approach to 

identifying and addressing 

data security risks

No modification

Description of approach to 

identifying and addressing 

data security risks

FN-CB-240a.4*

Number of participants in 

financial literacy initiatives for 

unbanked, underbanked 

or underserved customers

Modified to focus on: the 

CreditSmart® program and 

the Borrower Help Centers 

and Borrower Help Network

Number of participants in the 

CreditSmart® program and 

supported by the Borrower 

Help Centers and Borrower 

Help Network

FN-CB-550a.2*

Description of approach to 

incorporation of results of 

mandatory and voluntary 

stress tests into capital 

adequacy planning, long-term 

corporate strategy and other 

business activities

No modification

Description of approach to 

incorporation of results of 

mandatory and voluntary 

stress tests into capital 

adequacy planning, long-term 

corporate strategy and other 

business activities

FN-IB-330a.1

Percentage of gender 

and racial/ethnic group 

representation for (1) 

executive management, (2) 

non-executive management, 

(3) professionals and (4) all 

other employees

Modified to map categories 

to EEO-1 job classifications

Percentage of gender 

and racial/ethnic group 

representation for (1) 

executive management, (2) 

non-executive management, 

(3) professionals, (4) all other 

employees and (5) all (total) 

employees

FN-IB-510a.2* Description of whistleblower 

policies and procedures No modification Description of whistleblower policies and procedures

Appendix
SUSTAINABILITY REPORT 72

SASB Criteria Management Defined/Specified Metric

SASB Code SASB Metric Modified, Not Applicable, 

or Omitted Freddie Mac Metric

FN-IB-510b.4*

Description of approach 

to ensuring professional 

integrity, including duty of 

care

No modification

Description of approach 

to ensuring professional 

integrity, including duty of 

care

FN-IB-410a.2

(1) Number and (2) total value 

of investments and loans 

incorporating integration of 

environmental, social, and 

governance (ESG) factors, 

by industry

Modified to replace 

“investments and loans” with 

“bonds issued and number 

of mortgage loans backing 

social, sustainability, and 

green bonds,” and to increase 

transparency by including 

single-family and multifamily 

information

(1) Value of social, 

sustainability, and green 

bonds issued, (2) number 

of mortgage loans backing 

social, sustainability, and 

green bonds issued, and 

(3) number of Single-Family 

green bonds issued

[Note: Freddie Mac also 

presents the number of 

rental units financed which 

were not subject to the 

procedures applied in 

PricewaterhouseCoopers 

LLP’s (PwC) limited assurance 

engagement]

Appendix

Assurance Scope

PwC performed a limited assurance engagement on the metrics in the SASB Index and Metrics, as Modified table, unless 

specifically noted in the table and footnotes to the metrics presented on pages 73 to 99. (See PwC’s Report of Independent 

Accountants on page 101).
SUSTAINABILITY REPORT 73

FN-MF-270a.1

(1) Number and (2) value of residential mortgages of the following types: (a) Hybrid or Option Adjustable-rate Mortgages 

(ARM), (b) Prepayment Penalty, (c) Higher Rate and (d) Total, by FICO scores above or below 660, and FICO not available, 

including as a percentage of total population

Number Unpaid Principal Balance ($ in millions)

2022 2021 2020 2022 2021 2020

Hybrid or Option ARM1 30,552 37,335 48,020 $3,561 $4,516 $6,181

FICO ≤ 660 5,159 6,236 7,935 $607 $756 $1,010

As % of Total 17% 17% 17% 17% 17% 16%

FICO > 660 24,540 29,624 38,057 $2,932 $3,727 $5,120

As % of Total 80% 79% 79% 82% 83% 83%

FICO not available 853 1,475 2,028 $22 $33 $51

As % of Total 3% 4% 4% 1% 1% 1%

Higher Rate 

(Higher Priced)2 182,234 166,738 166,276 $32,843 $29,294 $24,694

FICO ≤ 660 33,260 29,829 32,083 $5,206 $4,386 $4,776

As % of Total 18% 18% 19% 16% 15% 19%

FICO > 660 148,722 136,645 133,873 $27,610 $24,883 $19,886

As % of Total 82% 82% 81% 84% 85% 81%

FICO not available 252 264 320 $27 $25 $32

As % of Total —% —% —% —% —% —%

Total Residential 

Mortgages 13,365,426 12,877,393 11,727,391 $2,945,069 $2,748,296 $2,282,279

FICO ≤ 660 722,226 711,392 722,798 $114,617 $107,323 $100,238

FICO > 660 12,627,560 12,146,271 10,978,984 $2,829,140 $2,639,646 $2,180,339

FICO not available 15,640 19,730 25,609 $1,312 $1,327 $1,702

SASB Metrics, as Modified

Lending Practices

Appendix
SUSTAINABILITY REPORT 74

Table represents Single-Family mortgage loans on our consolidated balance sheet, which includes: 

• Loans held in the consolidated trusts

• Loans held in the retained portfolio

• Loans held for sale

We discontinued purchases of Prepayment Penalty loans in 2014. As a result, any loan previously acquired with a 

prepayment penalty has seasoned beyond the effective date of the penalty. As a result, we exclude these loans from 

our reporting. 

FICO score is as of loan origination. For certain loans, FICO is not available and is presented as a separate category.

One loan can be in multiple categories. For instance, one loan can be in both the hybrid or option ARM category and 

higher rate category. 

None of the approximately 47,000 mortgage loans originated prior to 2000 that remain in our active portfolio as of 

December 31, 2022 are identified as having a Treasury rate spread of greater than or equal to 300 basis points. In addition, 

prior to 2010, Sellers were only required to report Treasury rate spreads of greater than or equal to 300 basis points. We 

have identified approximately 10,000 mortgage loans of the approximately 678,000 mortgage loans originated between 

2000 and 2009 that have a Treasury rate spread of greater than or equal to 300 basis points. Of the total higher-priced 

mortgage loans, 11,481 have been modified as of December 31, 2022, and represent 6.3% of the total higher-priced 

mortgage loans.

To obtain the relevant APOR, we use the “Borrower Price Lock Date” as provided in the Uniform Loan Delivery Dataset as the 

date of the rate lock date to look up the relevant comparable APOR.

Footnote:

1 “Hybrid or Option ARM” loans include hybrid ARMs with initial rate resets of less than 5 years and ARMs with initial rate resets of 5 years or more that have interest only 

(IO) or negative amortization options. For example, 5/1, 7/1 and 10/1 hybrid ARMs are excluded unless they have an IO or option ARM feature, but if they have an IO or 

option ARM feature, they will be included. IO product type and the term are based upon purchase information. We entirely discontinued purchases of loans with these 

features in 2010.

2 “Higher Rate” has the same meaning as Higher-Priced mortgages under the Truth in Lending Act. Accordingly, loans with a Treasury rate spread of greater than or 

equal to 300 basis points (loans originated from 2000 - 2009) and loans with an Average Prime Offer Rate (APOR) spread of greater than or equal to 150 basis points 

(loans originated after 2009) are considered higher-priced mortgages. These spreads are consistent with the Home Mortgage Disclosure Act (HMDA) rate spread that 

were delivered by the Seller. We updated the criteria in 2022 to use the Treasury rate spread of greater than or equal to 300 basis points to determine higher-priced 

loans for loans originated from 2000 to 2009 instead of a APOR spread of greater than or equal to 150 basis points, which was used in last year’s reporting.

Appendix
SUSTAINABILITY REPORT 75

FN-MF-270a.2

(1) Number and (2) value of (a) residential mortgage modifications, (b) foreclosures and (c) short sales or deed in lieu of 

foreclosure, by FICO scores above and below 660, and FICO not available

Number Unpaid Principal Balance1

 ($ in millions)

2022 2021 2020 2022 2021 2020

Modifications/Payment 

Deferrals (Total)2 106,049 210,986 187,092 $24,988 $48,271 $40,606

FICO ≤ 660 21,259 36,922 30,116 $3,990 $6,757 $5,327

FICO > 660 84,540 173,510 156,574 $20,974 $41,458 $35,241

FICO not available 250 554 402 $24 $57 $38

Foreclosures (Total)3 3,489 2,965 4,005 $408 $325 $478

FICO ≤ 660 976 851 1,201 $109 $93 $143

FICO > 660 2,476 2,084 2,765 $296 $231 $333

FICO not available 37 30 39 $2 $2 $2

Short Sale/Deed in Lieu 

(Total)4 208 649 1,174 $43 $131 $241

FICO ≤ 660 55 186 347 $11 $37 $74

FICO > 660 153 463 820 $31 $94 $166

FICO not available 0 0 7 $0 $0 $1

Table represents Single-Family mortgage loans on our consolidated balance sheet, which includes:

• Loans held in the consolidated trusts

• Loans held in the retained portfolio

• Loans held for sale

FICO score is as of loan origination. For certain loans, FICO is not available and is presented as a separate category.

Additionally, not included in the above table, there were:

• 17,400 loans with $2,725M in UPB in process of foreclosure as of December 31, 2022.

• 8,623 loans with $1,389M in UPB in process of foreclosure as of December 31, 2021.

• 14,695 loans with $2,384M in UPB in process of foreclosure as of December 31, 2020.

Appendix
SUSTAINABILITY REPORT 76

Footnote:

1

 Unpaid Principal Balance (UPB) is as of the month the loan entered into Modification/Payment Deferral/Foreclosure/Short Sale/Deed in Lieu.

2 “Modifications/Payment Deferrals” includes settled modifications and payment deferrals during the reporting year.

3 “Foreclosures” includes completed foreclosures during the reporting year. 

• Note that in rare situations foreclosed loans may return to delinquent status. The number reported above is not adjusted for subsequent reversals of foreclosure.

• Note that third-party sales of foreclosures (loans that went to third-party sale during the reporting year) that did not incur losses to Freddie Mac are excluded. 

There were 361, 120, and 151 third-party sales that did not incur losses in 2022, 2021, and 2020, respectively.

4 “Short Sale/Deed in Lieu” includes loans that went to either short sale or deed in lieu of foreclosure (settled liquidation workouts) during the reporting year.

Appendix

FN-MF-270a.4

Description of remuneration structure of loan originators

Freddie Mac does not originate mortgage loans. Although we do not originate mortgage loans, our Single-Family and 

Multifamily Seller/Servicer Guides include requirements that may affect remuneration practices for loan originators.

Freddie Mac Sellers are required to comply with all applicable federal, state and local laws, ordinances, regulations, 

orders and regulatory guidance.

Single-Family Sellers must ensure that their loan originator compensation practices comply with the loan originator 

compensation provisions of the Truth in Lending Act and Regulation Z, and that loan originators comply with these 

requirements when presenting loan options to consumers. (See Single-Family Seller/Servicer Guide, Chapter 1301.2(a) 

and Chapter 4202.1)

Multifamily Sellers must charge a Minimum Origination Fee in connection with the origination and sale of a mortgage to 

Freddie Mac. (See Multifamily Seller/Servicer Guide, Chapter 17.1(f))
SUSTAINABILITY REPORT 7 7

Discriminatory Lending

FN-MF-270b.1

(1) Number, (2) value, and (3) weighted average Loan-to-Value (LTV) ratio of mortgages purchased 

and acquired by (a) American Indian or Alaska Native, (b) Asian, (c) Black or African American, (d) Native Hawaiian or Other 

Pacific Islander, (e) Hispanic or Latino, (f) White - non-Hispanic or Latino, (g) Total Minority Borrowers, (h) Race not reported, 

(i) Ethnicity not reported and (j) Minority not reported, by FICO scores above and below 660, and FICO not available

Number Unpaid Principal Balance 

($ in millions) Weighted Average (LTV)

2022 2021 2020 2022 2021 2020 2022 2021 2020

American 

Indian or Alaska 

Native

14,866 30,056 22,698 $4,231 $8,206 $6,154 76% 73% 73%

FICO ≤ 660 1,275 1,875 910 $290 $426 $198 68% 68% 70%

FICO > 660 13,583 28,180 21,785 $3,940 $7,780 $5,955 77% 73% 73%

FICO not available 8 1 3 $2 $— $1 74% 90% 85%

Asian 157,576 369,681 342,334 $60,280 $133,936 $123,252 76% 69% 68%

FICO ≤ 660 4,076 6,826 4,363 $1,315 $2,127 $1,284 70% 69% 70%

FICO > 660 153,415 362,823 337,946 $58,935 $131,798 $121,962 76% 69% 68%

FICO not available 85 32 25 $29 $11 $6 75% 77% 76%

Black or African 

American 114,172 197,221 129,659 $31,926 $52,790 $34,431 78% 76% 77%

FICO ≤ 660 12,283 15,428 7,342 $2,792 $3,496 $1,637 69% 70% 73%

FICO > 660 101,840 181,770 122,294 $29,121 $49,290 $32,790 79% 76% 78%

FICO not available 49 23 23 $13 $4 $4 72% 73% 78%

Native 

Hawaiian or 

Other Pacific 

Islander

6,440 15,486 13,653 $2,195 $5,085 $4,440 75% 71% 71%

FICO ≤ 660 487 820 425 $138 $229 $117 65% 67% 71%

FICO > 660 5,950 14,663 13,227 $2,055 $4,855 $4,323 75% 71% 71%

FICO not available 3 3 1 $1 $1 $— 80% 78% 80%

Appendix
SUSTAINABILITY REPORT 78

Number Unpaid Principal Balance 

($ in millions) Weighted Average (LTV)

2022 2021 2020 2022 2021 2020 2022 2021 2020

Hispanic or 

Latino 220,684 444,513 339,555 $67,219 $128,875 $97,337 77% 73% 74%

FICO ≤ 660 16,505 24,098 12,833 $4,079 $5,935 $2,997 67% 68% 71%

FICO > 660 204,031 420,351 326,657 $63,097 $122,922 $94,324 77% 73% 74%

FICO not available 148 64 65 $42 $18 $16 76% 83% 78%

White - NonHispanic or 

Latino

1,036,600 2,514,327 2,361,514 $298,194 $693,676 $646,445 75% 71% 72%

FICO ≤ 660 53,772 86,918 52,318 $11,957 $19,492 $11,338 67% 68% 71%

FICO > 660 982,212 2,427,070 2,308,847 $286,081 $674,109 $635,033 75% 71% 72%

FICO not available 616 339 349 $156 $75 $74 73% 73% 75%

Total Minority 

Borrowers 488,360 1,006,130 811,028 $157,393 $312,751 $253,832 77% 72% 72%

FICO ≤ 660 32,797 46,321 24,569 $8,124 $11,495 $5,896 68% 69% 71%

FICO > 660 455,286 959,689 786,348 $149,187 $301,224 $247,910 77% 72% 72%

FICO not available 277 120 111 $82 $32 $26 75% 80% 78%

Race not 

reported 278,766 682,126 573,387 $85,376 $204,460 $175,483 73% 69% 69%

FICO ≤ 660 20,361 30,674 15,646 $4,808 $7,404 $3,721 65% 66% 69%

FICO > 660 258,270 651,385 557,672 $80,530 $197,040 $171,746 73% 69% 69%

FICO not available 135 67 69 $38 $16 $16 72% 75% 74%

Ethnicity not 

reported 258,721 653,502 579,238 $79,472 $196,143 $177,411 73% 69% 69%

FICO ≤ 660 17,904 27,945 14,911 $4,234 $6,759 $3,561 65% 66% 69%

FICO > 660 240,702 625,491 564,257 $75,205 $189,368 $173,833 73% 69% 69%

FICO not available 115 66 70 $32 $16 $17 71% 74% 74%

Appendix
SUSTAINABILITY REPORT 79

Number Unpaid Principal Balance 

($ in millions) Weighted Average (LTV)

2022 2021 2020 2022 2021 2020 2022 2021 2020

Minority not 

reported 277,543 698,432 609,504 $85,340 $209,760 $186,377 73% 69% 69%

FICO ≤ 660 19,207 29,662 15,652 $4,547 $7,171 $3,741 65% 66% 69%

FICO > 660 258,213 668,700 593,779 $80,758 $202,572 $182,618 73% 69% 69%

FICO not available 123 70 73 $35 $17 $18 72% 74% 74%

Table represents Single-Family mortgage loans purchased and acquired (excluding Long-Term Standby commitments [LTSB]) 

during the reporting year.

Borrowers are asked to report both race and ethnicity on their loan application. We rely on our Sellers to provide the 

information presented at the time of purchase and acquisition of the loan by Freddie Mac. For all protected class groups, 

in cases where there are more than two borrowers, only the first two borrowers are considered. Note that:

• A loan is considered Hispanic or Latino if a borrower is Hispanic or Latino

• A loan is considered Black or African American, Asian, American Indian or Alaska Native, or Native Hawaiian or Other 

Pacific Islander if a borrower lists one of those races

• The same loan can be counted as multiple races and Hispanic or Latino at the same time

• A loan is counted as White - non-Hispanic or Latino only when a borrower lists race as White and ethnicity 

as non-Hispanic or Latino. A loan is not counted as White- non-Hispanic or Latino and another race or ethnicity 

category at the same time

• A loan is classified as race, ethnicity or minority not reported if neither of the borrowers list a race, ethnicity

or minority, respectively. 

• A loan may be included in multiple ‘not reported’ categories simultaneously depending on the race and ethnicity 

information provided by a borrower

Whenever possible, protected class group names align with HMDA demographic naming conventions.

Unpaid Principal Balance (UPB) and Weighted Average (LTV) use information provided at origination. FICO refers to the FICO 

score used for loan application decisioning. For certain loans, FICO is not available and is presented as a separate category.

Appendix
SUSTAINABILITY REPORT 8 0

Appendix

FN-MF-270b.2

Settlements, judgments or fines exceeding $100,000 as a result of legal proceedings associated with discriminatory 

mortgage practices 

Freddie Mac discloses material legal and regulatory proceedings in its Annual Report on Form 10-K. For the years ended 

December 31, 2022, 2021, and 2020, Freddie Mac has not identified any monetary losses exceeding $100,000 incurred 

through settlements, judgments or fines as a result of legal proceedings associated with discriminatory mortgage practices.
SUSTAINABILITY REPORT 8 1

FN-MF-270b.3

Description of policies and procedures for ensuring nondiscriminatory mortgage origination 

Under Section 305(a) of our Charter, Freddie Mac is not permitted to originate mortgage loans. Accordingly, we do not 

originate mortgage loans or lend money directly to mortgage borrowers.

Although Freddie Mac does not originate loans, we require all Seller/Servicers with whom we do business to abide 

by all applicable laws and practice the principles of equal opportunity and non-discrimination in all business activities. 

Specifically, our Single-Family and Multifamily Seller/Servicer Guides prohibit Seller/Servicers from discriminating on 

the basis of race, color, religion, sex, age, marital status, disability, veteran status, genetic information (including family 

medical history), pregnancy, parental status, familial status, national origin, ethnicity, sexual orientation, gender identity 

or other characteristics protected by law. Our Single-Family and Multifamily Seller/Servicer Guides also require Seller/

Servicers to comply with all applicable federal, state and local laws and regulations, including non-discrimination and fair 

lending laws. For more information on our selling and servicing requirements, see Single-Family Seller/Servicer Guide 

Chapters 1301.2 and 1301.12 and Multifamily Seller/Servicer Guide Chapter 3.17.

Freddie Mac has fair lending staff and management professionals in all three lines of defense (i.e., our business, risk 

management and internal audit divisions) as well as the legal division. These professionals conduct quantitative and 

qualitative reviews concerning our credit policies, Seller/Servicer Guide requirements, underwriting and valuation, 

and otherwise support Freddie Mac’s commitment to fair lending and compliance with all applicable federal, state and 

local laws and regulations, including non-discrimination and fair lending laws. In addition, the company has created 

dedicated fair lending programs in each division. 

The Single-Family Fair Lending Program identifies, assesses, monitors, and mitigates fair lending risk and seeks to 

prevent the occurrence of fair lending violations in Freddie Mac’s Single-Family division. This Single-Family Fair Lending 

Program includes fair lending specific policies and procedures applicable to relevant business departments to ensure 

controls are in place to properly manage fair lending risk and further the purposes of fair lending laws and regulations.

Multifamily’s Fair Lending Policy provides the fair lending framework for the Multifamily division by establishing 

requirements and providing divisional expectations to maintain controls to mitigate fair lending risk, prevent the 

occurrence of fair lending violations and further the purposes of fair lending laws. Multifamily’s control environment 

specifically includes, but is not limited to, procedures to conduct a periodic fair lending review of the Multifamily Seller/

Servicer Guide, fair lending reviews for relevant FHFA submissions and reviewing selected third-party appraisal reports 

for use of discriminatory words. In addition, training, cooperative engagement with regulators, and timely fair lending 

reporting to both management and external stakeholders, are key components of Multifamily’s fair lending approach. 

Appendix
SUSTAINABILITY REPORT 8 2

FN-MF-450a.1

(1) Number and (2) value of mortgage loans or properties in 100-year flood zones by (a) single-family 

and (b) multifamily, including as a percentage of total mortgage loans or properties in the population

Number of Mortgage Loans Unpaid Principal Balance ($ in millions)

2022 2021 2020 2022 2021 2020

Single-Family1

 - Total 13,365,426 12,877,393 11,727,391 $2,945,069 $2,748,296 $2,282,279

Mortgage loans in 100-year 

Flood Zones 386,462 377,273 360,922 $84,964 $79,340 $68,907

% of total mortgage loans 3% 3% 3% 3% 3% 3%

Number of Properties Book Value ($ in millions)

2022 2021 2020 2022 2021 2020

Single-Family Real Estate 

Owned (REO) 2,218 1,615 1,766 $278 $176 $198

Properties in 100-year Flood 

Zones 140 127 131 $17 $14 $15

% of total REO properties 6% 8% 8% 6% 8% 8%

Environmental Risk

Appendix
SUSTAINABILITY REPORT 8 3

Appendix

We define “Mortgage loans in 100-year flood zones” and “properties in 100-year flood zones” as loans with buildings, or 

properties, that are located in areas designated by FEMA as Special Flood Hazard Areas (SFHAs) and that require flood 

insurance at origination.

Flood zone status is based upon information received at the time of loan origination. Flood zone classification is reported 

based on information provided by our Seller/Servicers. 

REOs are real estate properties that we have acquired through a foreclosure sale or through a deed in lieu of foreclosure.

Footnote:

1

 Table represents Single-Family mortgage loans on our consolidated balance sheet, which includes:

• Loans held in the consolidated trusts

• Loans held in the retained portfolio

• Loans held for sale

2 Table represents unsecuritized mortgage loans (including mortgage loans designated as held-for-sale), securitized mortgage loans held by consolidated trusts and 

other mortgage-related guarantees (i.e., guarantees of Housing Finance Agency issued bonds not on the balance sheet) in our Multifamily mortgage portfolio, as this 

represents Multifamily’s exposure to first loss on properties located in these 100-year flood zones.

As of December 31, 2022, 2021, and 2020, Multifamily did not have any REO properties in the portfolio.

Number of Mortgage Loans Unpaid Principal Balance ($ in millions)

2022 2021 2020 2022 2021 2020

Multifamily2 - Total 3,981 3,123 3,267 $68,433 $52,125 $56,499

Mortgage loans in 100-year 

Flood Zones 271 222 235 $5,181 $4,040 $4,387

% of total mortgage loans 7% 7% 7% 8% 8% 8%

Number of Properties Book Value ($ in millions)

2022 2021 2020 2022 2021 2020

Multifamily REO 0 0 0 $0 $0 $0

Properties in 100-year Flood 

Zones 0 0 0 $0 $0 $0

% of total REO properties 0% 0% 0% 0% 0% 0%
SUSTAINABILITY REPORT 8 4

Appendix

FN-MF-450a.2

Description of how weather-related natural catastrophes are considered in determining total expected loss and loss 

given default

The unpredictability of natural disasters and the complexity of forecasting the long-term effects of climate change 

negatively impact our ability to forecast losses from such events.

Freddie Mac generally does not attribute mortgage loan default and delinquency to weather-related natural 

catastrophes in determining total expected loss and loss given default. We apply assumptions to estimate losses that 

could be attributable to weather-related natural catastrophes. Historically, such estimated economic losses have not 

been material.

We continue to make progress on understanding, measuring and mitigating the impacts of climate change. 

FN-MF-450a.3

Description of how climate change and other environmental risks are incorporated into mortgage origination and underwriting

Under Section 305(a) of our Charter, Freddie Mac is not permitted to originate mortgage loans. Accordingly, we do not 

originate mortgage loans or lend money directly to mortgage borrowers. 

Our Single-Family division does not underwrite or re-underwrite loans. We require all homes collateralizing singlefamily mortgages in our portfolio to have homeowners insurance coverage throughout the life of the loan. In addition, 

for homes located in SFHAs designated by FEMA, borrowers must have flood insurance coverage. Sellers are required 

to determine whether homes collateralizing single-family mortgages are located in a SFHA and, if so, to ensure that 

flood insurance coverage exists at the time the loan is sold to Freddie Mac. Servicers are required to ensure that flood 

insurance on these homes is maintained throughout the life of the loan and is in the amount needed to comply with 

federal government and Freddie Mac requirements. If a borrower fails to obtain and maintain required flood insurance 

coverage, Servicers must directly place such coverage. (See our Single-Family Seller/Servicer Guide, including Chapters 

3401.22, 4703.1, 4703.3, 6302.8, 8202.3, and 8202.12)

Although we do not originate mortgage loans, the Multifamily division does re-underwrite the mortgages we purchase. 

Sellers are required to provide third-party environmental and property condition reports, as well as FEMA Flood Zone 

Determinations, that help identify environmental risks associated with loans that are candidates for purchase. Our 

Multifamily Seller/Servicer Guide dictates requirements for borrowers to maintain insurance covering the loan collateral 

against all relevant perils such as fire, wind/hail, hurricane, flood and earthquake. (See our Multifamily Seller/Servicer 

Guide Chapter 31- Insurance Requirements).
SUSTAINABILITY REPORT 8 5

Activity Metric

FN-MF-000.B

(1) Number and (2) value of mortgages purchased by category: (a) single-family and (b) multifamily

Number Unpaid Principal Balance ($ in millions)

2022 2021 2020 2022 2021 2020

Single-Family 1,802,503 4,218,889 3,782,046 $540,472 $1,215,275 $1,085,907

Purchase Loans 1,039,305 1,376,812 1,128,840 $339,489 $429,156 $323,989

Refinance Loans 763,198 2,842,077 2,653,206 $200,983 $786,119 $761,918

Multifamily $72,833 $69,999 $82,534

Units Financed1 693,193 654,539 802,953

Loan Count 4,436 4,885 5,335

Single-Family

Table represents Single-Family mortgage loans purchased during the reporting year. It does not include long-term standby 

commitments (LTSBs). Our Single-Family purchases include mortgages collateralized by residences with one to four units. 

Multifamily

Table represents Multifamily mortgage loans purchased during the reporting year. Our Multifamily purchases include 

mortgages collateralized by residences with five or more units or by a manufactured housing community. We do not 

purchase commercial mortgages.

Footnote

1

 Cooperative mortgage loans are not included in unit count.

Appendix
SUSTAINABILITY REPORT 8 6

Appendix

Data Security

FN-CB-230a.2

Description of approach to identifying and addressing data security risks

Freddie Mac maintains a cybersecurity program that aligns with industry standards, including the National Institute 

of Standards and Technology (NIST) 800-53 control framework. Our Freddie Mac Code of Conduct reinforces the 

importance of data privacy and protection. Our program continues to evolve based on the changing needs of our 

business, the evolving threat environment and FHFA regulatory guidance.

The Board and the Risk Committee engage in discussions throughout the year with senior leadership on cybersecurity 

risk matters and receive periodic reports from our Chief Information Security Officer and other senior officers, including 

updates on our cybersecurity program, the external threat environment, and the steps we are taking to address and 

mitigate risks associated with the evolving cybersecurity threat environment. Freddie Mac has procedures to escalate 

information regarding certain cybersecurity incidents to the Risk Committee of the Board in a timely fashion.

We also require annual training regarding the use of information for new and existing employees including contractors and 

consultants who have access to Freddie Mac technology assets. Our training covers protecting Freddie Mac information, 

privacy, policy and standards, security best practices, and the identification and reporting potential cyber threats.

For each of the three years ended December 31, 2022, 2021, and 2020, we have not experienced any material losses 

related to cyberattacks.
SUSTAINABILITY REPORT 87

Financial Inclusion and Capacity Building

FN-CB-240a.4

Number of participants in the CreditSmart® program and supported by the Borrower Help Centers and Borrower 

Help Network

2022 participation in the CreditSmart® program included approximately:

• 7,000 users of the CreditSmart® Essentials curriculum

• 160 industry professionals certified through CreditSmart® Coach

• 74,000 aspiring homebuyers completed CreditSmart® Homebuyer U

In 2022, the Borrower Help Centers and Borrower Help Network and other partners provided approximately 40,000 

individuals with one-on-one prepurchase counseling, homebuyer education to more than 104,000 consumers, 

financial capability education to approximately 161,000 individuals, referred more than 13,000 potential homebuyers to 

lenders for homeownership opportunities and provided foreclosure avoidance education and counseling to more than 

41,000 households.
SUSTAINABILITY REPORT 8 8

Systemic Risk Management

Appendix

FN-CB-550a.2

Description of approach to incorporation of results of mandatory and voluntary stress tests into capital adequacy 

planning, long-term corporate strategy and other business activities

Stress Testing

Pursuant to an FHFA rule on stress testing of regulated entities, Freddie Mac is required to conduct annual stress tests 

using scenarios specified by FHFA to determine whether the company has sufficient capital to absorb losses as a result of 

adverse economic conditions. Under the rule, we must publicly disclose the results of the stress test under the “severely 

adverse” scenario. In accordance with FHFA guidance, in August 2022, we disclosed the results of our 2022 “severely 

adverse” scenario stress test.

Enterprise Regulatory Capital Framework (ERCF) Rule

In 2020, FHFA formally established the ERCF, which requires the GSEs to hold substantially more regulatory capital than 

prior capital requirements. Our current capital levels are significantly below the levels that would be required under the 

final ERCF framework.

The ERCF rule has a transition period for compliance. In general, the compliance date for the regulatory ERCF capital 

requirements will be the later of the termination date of the company’s conservatorship and any compliance date 

provided in a transition order. The compliance date for regulatory buffer requirements in the ERCF will be the date of 

termination of the conservatorship. 

The ERCF rule requires us to submit annual capital plans to FHFA and provide prior notice for certain capital actions. It 

also incorporates the determination of the stress capital buffer, an element of the ERCF, into the capital planning process. 

We submitted our first capital plan to FHFA in May 2023.
SUSTAINABILITY REPORT 8 9

Employee Diversity and Inclusion

FN-IB-330a.1

Percentage of gender and racial/ethnic group representation for (1) executive management, 

(2) non-executive management, (3) professionals, (4) all other employees and (5) all (total) employees

Representation of Racial or Ethnic Groups and Gender as a Percentage of Job Category by Year

Executive

Management 

Non-Executive 

Management Professionals All Other Employees All Employees

2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020

Asian 20.2% 22.4% 21.4% 33.1% 31.7% 29.0% 39.1% 39.5% 39.9% 9.7% 12.4% 11.4% 37.5% 37.6% 37.4%

Women 8.1% 7.1% 5.9% 13.1% 13.1% 12.0% 17.5% 18.1% 18.0% 8.8% 10.7% 9.3% 16.6% 17.1% 16.7%

Men 12.1% 15.3% 15.5% 20.0% 18.6% 17.0% 21.6% 21.4% 21.8% 0.9% 1.7% 2.1% 20.9% 20.5% 20.6%

Black or 

African 

American

5.8% 5.3% 5.3% 5.6% 5.6% 5.4% 14.7% 14.0% 13.6% 26.5% 26.4% 30.0% 13.5% 12.9% 12.6%

Women 2.3% 2.4% 2.7% 3.4% 3.1% 3.3% 7.7% 7.3% 7.3% 23.9% 24.0% 26.4% 7.3% 6.9% 7.0%

Men 3.5% 2.9% 2.7% 2.2% 2.5% 2.1% 7.0% 6.7% 6.3% 2.7% 2.5% 3.6% 6.2% 5.9% 5.6%

Hispanic 

or Latino 2.9% 3.5% 4.3% 4.0% 3.8% 4.0% 6.2% 5.8% 5.5% 12.4% 11.6% 11.4% 5.9% 5.6% 5.4%

Women 0.6% 0.6% 1.1% 1.3% 1.0% 1.0% 2.8% 2.7% 2.6% 9.7% 10.7% 10.0% 2.7% 2.5% 2.5%

Men 2.3% 2.9% 3.2% 2.7% 2.8% 3.0% 3.4% 3.1% 2.9% 2.7% 0.8% 1.4% 3.3% 3.0% 2.9%

White 69.4% 67.1% 67.4% 55.9% 57.7% 60.6% 37.5% 38.3% 38.6% 50.4% 48.8% 46.4% 40.8% 41.8% 42.4%

Women 18.5% 18.8% 20.3% 22.5% 22.9% 23.4% 15.1% 15.6% 15.4% 41.6% 40.5% 37.1% 16.6% 17.1% 17.0%

Men 50.9% 48.2% 47.1% 33.3% 34.8% 37.2% 22.4% 22.7% 23.2% 8.8% 8.3% 9.3% 24.3% 24.7% 25.4%

Native 

Hawaiian 

or Other 

Pacific 

Islander

0% 0% 0% 0.1% 0.1% 0% 0.1% 0.2% 0.2% 0% 0% 0% 0.1% 0.2% 0.2%

Women 0% 0% 0% 0% 0% 0% 0% 0.1% 0.1% 0% 0% 0% 0% 0.1% 0.1%

Men 0% 0% 0% 0.1% 0.1% 0% 0.1% 0.1% 0.1% 0% 0% 0% 0.1% 0.1% 0.1%

Appendix
SUSTAINABILITY REPORT 9 0

Representation of Racial or Ethnic Groups and Gender as a Percentage of Job Category by Year

Executive

Management 

Non-Executive 

Management Professionals All Other Employees All Employees

2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020 2022 2021 2020

American 

Indian or 

Alaska 

Native

0.6% 0.6% 0.5% 0.1% 0% 0% 0.2% 0.2% 0.1% 0% 0% 0% 0.2% 0.2% 0.2%

Women 0% 0% 0% 0% 0% 0% 0.1% 0.1% 0.1% 0% 0% 0% 0.1% 0.1% 0.1%

Men 0.6% 0.6% 0.5% 0.1% 0% 0% 0.1% 0.1% 0.1% 0% 0% 0% 0.1% 0.1% 0.1%

Two or 

More 

Races 

1.2% 1.2% 1.1% 1.2% 1.1% 1.0% 2.2% 2.1% 2.1% 0.9% 0.8% 0.7% 2.0% 1.9% 1.9%

Women 0% 0% 0% 0.6% 0.5% 0.3% 1.0% 0.9% 1.0% 0% 0% 0% 0.9% 0.8% 0.8%

Men 1.2% 1.2% 1.1% 0.6% 0.6% 0.7% 1.2% 1.1% 1.1% 0.9% 0.8% 0.7% 1.1% 1.1% 1.0%

Total 

Employees 173 170 187 1,020 971 901 6,408 5,975 5,650 113 121 140 7,714 7,237 6,878

Women 51 49 56 418 394 361 2,832 2,676 2,505 95 104 116 3,396 3,223 3,038

Men 122 121 131 602 577 540 3,576 3,299 3,145 18 17 24 4,318 4,014 3,840

Freddie Mac aligns its workforce to EEO-1 job categories as defined by EEO-1 Component 1 Job Classification Guide.

• Those included in the Executive Management category include those aligned with the EEO-1 category 

Executive/Senior Level Officials and Managers

• Those included in the Non-Executive Management category include those aligned with the EEO-1 category 

First/Mid-Level Officials

• Those in the Professionals category include those aligned with the EEO-1 category Professionals

• Those in the All Other Employees category include those aligned with the EEO-1 categories, which include 

Sales Workers and Administrative Support Workers 

The data provided represents the employee population as of the end of the respective reporting year.

Gender and race/ethnicity is self-reported by the employee and recorded in our Workforce Management system. 

Appendix
SUSTAINABILITY REPORT 9 1

Appendix

FN-IB-510a.2

Description of whistleblower policies and procedures

Seeking Advice and Reporting Concerns at Freddie Mac

Freddie Mac’s Codes of Conduct set critical expectations for our behavior, with separate versions that apply to employees 

and members of the Board of Directors. Copies of our Employee Code of Conduct and our Code of Conduct for Members 

of Freddie Mac’s Board of Directors are available, and required disclosures of any amendments or waivers are posted on 

our website. 

At Freddie Mac, each of us is accountable for strong individual and team performance. All companies — even those 

with strong cultures and good intentions — may experience episodes of misconduct. Our Values define who we are 

as a company and expectations for our business conduct. It is important that we speak up – even when uncomfortable 

— if there are questions or concerns. If employees or stakeholders suspect that something isn’t right, they may use our 

resources to help make sound decisions, ask questions, seek guidance or report questionable conduct. Employees are 

encouraged to contact the following:

• Their manager or another manager in their division 

• The Ethics Office 

• The Compliance & Ethics Helpline

Phone: (877) 301-CODE (2633)

Internet: FreddieMacEthicsHelpline.com 

• HR Connect or Employee Relations 

• The Chair of the Audit Committee of the Board of Directors

Individuals can seek advice or report suspected wrongdoing confidentially or anonymously by contacting the Helpline, 

24 hours a day, 365 days a year. We are so serious about the need to seek advice or report concerns, our Helpline 

number and web address appear on every single page of our Employee Code of Conduct. 

We also realize that non-employee stakeholders from time to time may have concerns to address. External parties may 

also utilize Freddie Mac’s Compliance & Ethics Helpline to report suspected employee misconduct. And our Employee 

Code of Conduct provides a means to report mortgage concerns via Freddie Mac’s Customer Service Department 

at (800) FREDDIE (373-3343), or REO property questions via HomeStep’s Customer Support Department at 

(800) 972-7555.

Business Ethics
SUSTAINABILITY REPORT 92

Appendix

We maintain the confidentiality of investigations consistent with a business Need to Know. If required, other participants 

in an internal investigation are asked to maintain the confidentiality of the investigation, which includes the fact of 

the investigation itself as well as any information relating thereto. Nothing in our policies precludes employees from 

reporting information about alleged wrongdoing (such as accounting irregularities) to government agencies such as 

the Securities & Exchange Commission or the Equal Employment Opportunity Commission. Employees may report 

information to government agencies without notifying Freddie Mac or obtaining its consent.

What to Expect When Using Freddie Mac’s Compliance & Ethics Helpline 

The Compliance & Ethics Helpline is administered by a third party. When an individual places a call to the Compliance & 

Ethics Helpline, a call center specialist will capture their question or report, asking them to provide detailed information. 

The specialist will forward the question or report to Freddie Mac Corporate Compliance staff. The call center specialist 

cannot provide the individual advice or resolve their issue over the phone. The call center specialist will provide them 

with the information necessary for them to follow up on their call on the Compliance & Ethics Helpline website where 

they can check the status or resolution of the matter they reported. 

When using the Compliance & Ethics Helpline web forms, individuals can ask questions, seek pre-approval for business 

courtesies, disclose potential conflicts of interest and report concerns by answering the questions on the relevant 

form. Once submitted, the information from the form is forwarded to Freddie Mac Corporate Compliance staff. The 

Compliance & Ethics Helpline website will provide the reporter with the information necessary for them to follow up on 

their submission so they can check the status or resolution of the matter they reported. 

Continued follow-up on a matter is particularly important for anonymous reports, where the Corporate Compliance 

staff has no other means to communicate with the employee. If the employee has identified themself by name, staff or 

a designated subject matter expert will contact them directly to discuss their concern and ask any additional questions 

they may have.

No Tolerance for Retaliation 

Freddie Mac is committed to maintaining a work environment where employees can ask questions, voice concerns and 

make appropriate suggestions without fear of retaliation. Freddie Mac will not tolerate retaliation against any company 

or individual who reports a concern about potential illegal or unethical conduct or a violation of Freddie Mac policies or 

who assists in the resolution of an investigation or proceeding. 

Freddie Mac’s non-retaliation position is posted within our Employee Code of Conduct, on our Compliance & Ethics 

Helpline website and on posters displayed around our facilities. 

Investigative Bodies

At Freddie Mac, three areas conduct internal investigations of complaints: (1) Compliance, (2) Internal Audit and (3) 

Legal (the Investigative Groups). In the absence of an actual or apparent conflict of interest, complaints will generally 

be assigned to Investigative Groups according to their subject matter expertise. Third Party Investigators investigate 

complaints that cannot otherwise be conducted by an Investigative Group because of actual or apparent conflicts of 

interest, resource constraints, lack of specialized subject matter expertise or other appropriate reasons. Any investigation 

may be conducted under the direction of Legal as determined by the General Counsel.
SUSTAINABILITY REPORT 93

Appendix

Complaints will be handled by qualified investigators objectively and fairly, without bias or prejudice, in a timely manner 

and with respect for all parties to the investigative process. Investigators will not presume that a complaint has merit, but 

rather will conduct an investigation of the facts.

The Chair of our Audit Committee of the Freddie Mac Board of Directors will oversee the investigation of any complaint 

that involves a Board member or the CEO unless the Audit Committee Chair is implicated or conflicted, in which case the 

investigation shall be overseen by the Chair of the Board.

In addition, our Investigation Policy contains provisions for escalation of certain types of allegations if they involve 

(1) accounting matters that present a reasonable likelihood of noncompliance with (a) applicable legal or regulatory 

requirements, (b) generally accepted accounting principles (GAAP) or (c) corporate policies pertaining to such 

requirements or to GAAP, or (2) complaints presenting a reasonable likelihood of a violation by (a) an executive officer 

or a member of the Board of Directors or (b) any employee other than an executive officer if a violation alleged in the 

complaint presents a reasonable likelihood of significant fraud, significant legal risk to the company, or a substantial or 

material effect on the reputation or operation of the company. If the heads of our Investigative Groups (Compliance, 

Legal and Internal Audit) determine an allegation meets these criteria, the matter is escalated for immediate awareness to 

our Board Chair, Audit Committee Chair, Risk Committee Chair, CEO, CFO, CRO and our regulator, FHFA. 

Conduct Risk Committee

Our risk governance structure, as outlined in Freddie Mac’s Enterprise Risk Policy, enumerates the need for several 

management risk committees, including a Conduct Risk Committee. Our Ethics Office has chartered this committee to 

share and discuss information on employee conduct-related matters among senior executive officers representing our 

Risk, Legal, Human Resources, Corporate Administration and Internal Audit divisions. The purpose of the Conduct Risk 

Committee is to evaluate employee conduct investigations and outcomes for consistency and to identify opportunities 

for governance or cultural improvements (e.g., policies and procedures, or training and awareness materials). Freddie 

Mac’s reporting mechanisms—including the Compliance & Ethics Helpline—and the reports and concerns they elicit are 

the foundation of the Conduct Risk Committee. 

Periodic Reports to the Audit Committee

In connection with the Audit Committee’s review of the company’s Quarterly Reports on Form 10-Q and Annual Reports 

on Form 10-K, the Chief Compliance Officer, General Auditor and General Counsel report jointly in writing to the Audit 

Committee concerning the existence and current status of any major accounting matters and any complaints alleging 

any fraud, whether or not material, that involves management or other employees who have a significant role in the 

company’s internal control over financial reporting. “Major accounting matters” at Freddie Mac means accounting 

matters that present a reasonable likelihood of noncompliance with (1) applicable legal or regulatory requirements, (2) 

GAAP or (3) corporate policies pertaining to such requirements or to GAAP.

Freddie Mac has remained in compliance with the whistleblower regulations, including but not limited to The Sarbanes 

Oxley Act and the Dodd-Frank Act, and has not recorded any complaints alleging violations of the whistleblower 

protections of those regulations.
SUSTAINABILITY REPORT 9 4

Appendix

FN-IB-510b.4

Description of approach to ensuring professional integrity, including duty of care

Freddie Mac’s Values

Freddie Mac empowers our employees and Board of Directors to act with professional integrity and fulfill our duty of care 

through our codes of conduct, through our expectations for our people managers, senior management, and Board of 

Directors, and through our Values: 

We are mission driven

We put the health of the housing finance market at the forefront of our business decisions 

And Mission drives everything we do

We do the right thing

We lead the company and our industry with integrity

And we take responsibility for our actions

We perform with excellence

We thoughtfully approach challenges

And we reliably deliver on our commitments

We are inclusive

We embrace our differences

And we engage with respect and positive intent

Success is defined by both what we accomplish and how we accomplish it. In addition to these Values—Mission, 

Integrity, Excellence and Inclusivity—we strive to lead, collaborate, deliver results, focus on stakeholders and grow 

and develop. We strive to excel in all those areas, to foster a culture that enables our teams to perform their best work 

in support of our mission. Like any behavior or habit, it will take constant self-reflection, feedback and hard work as we 

embrace these values, practice these cultural competencies and measure ourselves against them.

Professional Integrity
SUSTAINABILITY REPORT 95

Appendix

Guiding Principles and Ethical Decision-Making 

Our employee Code of Conduct, “How We Make Home Possible,” sets critical expectations for the actions we take and 

the competencies we demonstrate. Our Employee Code of Conduct is divided into six guiding principles that outline the 

responsibilities that we have to each other, our business partners, our competitors and our customers:

• We create a safe, respectful and inclusive work environment

• We safeguard our company’s and our partners’ information and resources

• We put the company’s interests before our own and disclose conflicts of interest

• We communicate truthfully and responsibly

• We conduct our business lawfully and in good conscience

• We ask for guidance and report concerns

Through these six Code of Conduct sections, employees can find high-level guidance on over 20 risk areas – such as 

treating others with respect, information protection, conflicts of interest, truthful reporting, fraud prevention and fair 

lending among others. Employees will also find links to the internal policies that provide more guidance and rules on 

the topics addressed in the Code of Conduct. Several scenarios demonstrating how to apply our Values and ethical 

frameworks are shared throughout the Employee Code of Conduct: asking employees to consider right versus wrong, 

potential consequences of their actions, reputational effect and the level of due diligence they have employed before 

making a decision. 

Our Employees and Leaders 

Our Employee Code of Conduct applies to all employees, including senior management and executives. Employees 

providing services under the Financial Agency Agreement between Freddie Mac and the Department of Treasury are 

also subject to the Freddie Mac Making Home Affordable Code of Conduct. We also expect that those who work with 

Freddie Mac, including our contingent workers, independent contractors and consultants, will embrace the spirit of the 

Code of Conduct and adhere to its standards. 

We hold those who manage people to higher standards, and these expectations are outlined in the Employee Code of 

Conduct. Additionally, our Employee Code of Conduct asserts that senior management is responsible for making sure 

the company has the resources to effectively execute our mission, and that certain members of leadership – to include 

the Chief Executive Officer, President, Chief Financial Officer and Principal Accounting Officer/Controller – must also 

promote full, fair, accurate and understandable disclosures in filings with the Securities and Exchange Commission and 

other public communications regarding our financial condition. 

Trainings, Attestation and Restrictive Covenants

All employees, including senior executives and financial officers, are required to sign an annual acknowledgement that 

they have read the Employee Code of Conduct and agree to abide by it and will report suspected deviations from it. 

We capture this acknowledgement through a mandatory Code of Conduct training with an attestation statement at the 

conclusion of the online course. Each year, our Ethics Office creates a new version of this training course that highlights 

the risks most pertinent to us in that calendar year and reminds us of our professional integrity responsibilities. The course
SUSTAINABILITY REPORT 9 6

Appendix

is also assigned to contingent workers and new hires as they onboard throughout the calendar year. Our employees are 

also assigned other mandatory training courses covering risk and compliance requirements related to: identifying and 

reporting suspicious activity; abiding by Freddie Mac’s personal investment program; conforming with Freddie Mac’s 

information wall, privacy and records management programs; keeping our corporate information secure; how to work 

appropriately with our conservator and regulator; and meeting our fair lending responsibilities. Our employees also 

receive risk and compliance training specific to their job duties throughout the year.

While all employees are required to adhere to our company’s conflicts of interest requirements, certain employees 

have post-employment restrictions specific to further protect our corporate information. Such employees are required 

to abide with six-month cooling-off periods following the termination of their employment with Freddie Mac. 

The cooling-off periods restrict specific types of engagement with Freddie Mac on behalf of the former employee’s new 

employers. Knowing violations of the cooling-off periods may result in legal action. 

Our Board of Directors

Our directors are expected to set the ethical tone at the top by communicating and supporting Freddie Mac’s 

commitment to act with integrity and conduct our business with the highest ethical standards as stated in our Code 

of Conduct for Members of Freddie Mac’s Board of Directors (the “Board Code”). The Board Code is based on our 

company’s Values and provides a guide for our directors to fulfill their responsibilities. The Board Code has four chapters 

that cover risk areas specific to directors’ responsibilities – such as conduct relating to Freddie Mac, conduct relating to 

our third parties, investments and enforcement. 

When joining our Board of Directors, our directors acknowledge that they have reviewed and understand the Board 

Code and agree to be bound by its provisions, and each director re-executes such confirmation annually. 

Ultimately, our directors serve on behalf of, and exercise authority as directed by, Freddie Mac’s Conservator (FHFA) and 

owe their fiduciary duties of care and loyalty to the Conservator. Although the Conservator has provided authority for 

the Board of Directors and its committees to function in accordance with the duties and authorities set forth in applicable 

statutes, regulations, guidance, orders, directives and our Bylaws and committee charters, the Conservator has reserved 

certain powers of approval for itself. The Conservator provided instructions to the Board of Directors in 2008, 2012, and 

2017 for Freddie Mac to consult with and obtain the Conservator’s decision before taking certain actions. 

Updating Our Codes of Conduct

Freddie Mac is required to review its Employee Code of Conduct at least once every three years. In 2022, we completed 

a full review and revision of the Employee Code of Conduct to highlight additional areas of focus (including fair lending 

and diversity, equity and inclusion) for the company and to generally refresh the document. The revision was approved 

by Freddie Mac’s Audit Committee of the Board of Directors in September 2022 and subsequently published to our 

website. The Board of Directors last approved a revision to the Board Code on September 3, 2020.
SUSTAINABILITY REPORT 97

Incorporation of Environmental, Social, and Governance Factors in Investment 

Banking & Brokerage Accounts

Footnote

1

 Multifamily only. Social Bonds are identified as offerings throughout the year that are labeled as social in investor disclosure. Whether the Bonds meet the definition 

of a Social Bond, as well as the eligibility of mortgage loans backing the Social Bonds issued, were not subject to the procedures applied in PwC’s limited 

assurance engagement

2 Units are considered low-income if affordable to tenants earning at or less than 80% Area Median Income (AMI)

3 Units are considered very low-income if affordable to tenants earning at or less than 50% AMI

4 The number of rental units, number of low-income rental units and number of very low-income rental units financed was not subject to the procedures applied in PwC’s 

limited assurance engagement, and accordingly, PwC makes no comment as to its completeness and accuracy and PwC does not express a conclusion or provide any 

assurance on such information

Appendix

FN-IB-410a.2

(1) Value of social, sustainability and green bonds issued, (2) number of mortgage loans backing social, sustainability, 

and green bonds issued, and (3) number of Single-Family green bonds issued

Social Bonds Issuances1

For year ended December 31

2022 2021 2020

Value of Social Bonds issued 

(Unpaid Principal Balance at issuance, $ millions) 2,279 1,425 877

Number of mortgage loans backing 

Social Bonds issued 160 134 163

Number of rental units financed by mortgage loans 

that back Social Bonds4 23,436 18,980 13,082

Number of low-income rental units2 financed by 

mortgage loans that back Social Bonds4 21,892 17,761 11,017

Number of very low-income rental units3 financed by 

mortgage loans that back Social Bonds4 12,120 14,078 7,336
SUSTAINABILITY REPORT 9 8

Sustainability Bonds Issuances1

For year ended December 31

2022 2021 2020

Value of Sustainability Bonds issued 

(Unpaid Principal Balance at issuance, $ millions) 2,033 2,421 972

Number of mortgage loans backing 

Sustainability Bonds issued 137 149 51

Number of rental units financed by mortgage loans 

that back Sustainability Bonds4 22,559 24,866 9,760

Number of low-income rental units2 financed by 

mortgage loans that back Sustainability Bonds4 21,765 24,235 9,120

Number of very low-income rental units3 financed by 

mortgage loans that back Sustainability Bonds4 14,420 15,621 4,026

Appendix

Footnote

1

 Multifamily only. Sustainability Bonds are identified as offerings throughout the year that are labeled as sustainable in investor disclosure. Whether the Bonds meet the 

definition of a Sustainability Bond, as well as the eligibility of mortgage loans backing the Sustainability Bonds issued, were not subject to the procedures applied in 

PwC’s limited assurance engagement

2 Units are considered low-income if affordable to tenants earning at or less than 80% AMI

3 Units are considered very low-income if affordable to tenants earning at or less than 50% AMI

4 The number of rental units, number of low-income rental units and number of very low-income rental units financed was not subject to the procedures applied in PwC’s 

limited assurance engagement, and accordingly, PwC makes no comment as to its completeness and accuracy and PwC does not express a conclusion or provide any 

assurance on such information
SUSTAINABILITY REPORT 9 9

Green Bonds Issuances1

For year ended December 31

2022 2021 2020

Number of Green Bonds Issued2 62 84 0

Value of Green Bonds Issued 

(Unpaid Principal Balance at issuance, in $ millions)

Single-Family Green Bonds 1,372 617 0

Multifamily Green Bonds 484 1,308 1,255

Number of Mortgage Loans Backing 

Green Bonds Issued

Single-Family Green Bonds 3,982 2,454 0

Multifamily Green Bonds 26 49 52

Number of rental units financed3 by mortgage loans 

that back Green Bonds6 4,782 11,732 11,731

Number of low-income rental units4 financed3 by 

mortgage loans that back Green Bonds6 4,497 9,978 10,154

Number of very low-income rental units5 financed3 by 

mortgage loans that back Green Bonds6 1,402 1,380 1,214

Appendix

Footnote

1

 Green Bonds are identified as offerings throughout the year that are labeled as green in investor disclosure. Whether the Bonds meet the definition of a Green Bond, as 

well as the eligibility of mortgage loans backing the Green Bonds issued, were not subject to the procedures applied in PwC’s limited assurance engagement

2 Single-Family only

3 Multifamily only

4 Units are considered low-income if affordable to tenants earning at or less than 80% AMI

5 Units are considered very low-income if affordable to tenants earning at or less than 50% AMI

6 The number of rental units, number of low-income rental units and number of very low-income rental units financed was not subject to the procedures applied in PwC’s 

limited assurance engagement, and accordingly, PwC makes no comment as to its completeness and accuracy and PwC does not express a conclusion or provide any 

assurance on such information
SUSTAINABILITY REPORT 100

Projected Green Bonds Impacts3

For year ended December 31

2022 2021 2020

Projected Energy Consumption Savings of Green Bonds 

(kBtu1

 in millions)

Single-Family Green Bonds 210 192 0

Multifamily Green Bonds 32 95 88

Projected Water Consumption Savings of Green 

Bonds2 (Gallons in millions) 41 115 128

Projected Greenhouse Gas Emissions Prevented 

(metric tons of CO2e in thousands)

Single-Family Green Bonds 17 11 0

Multifamily Green Bonds 3 8 8

Projected Average Property Owner Utility Cost Savings 

Per Unit Per Year ($)

Single-Family Homeowners $722 $1,027 $0

Projected Average Tenant Utility Cost Savings Per Unit 

Per Year ($)

Multifamily Tenants $255 $229 $263

Footnote:

1

 1,000 British thermal units

2 Multifamily only

3 This table is not part of metric FN-IB-410a.2 and was not subject to the procedures applied in PwC’s limited assurance engagement, and accordingly, PwC makes no 

comment as to its completeness and accuracy and PwC does not express a conclusion or provide any assurance on such information 

Single- Family

More information on methodology for impact statistics can be found in the appendix of the 2022 Impact Report

Multifamily

More information on methodology for impact statistics can be found in the appendix of the 2022 Impact Report

Appendix
SUSTAINABILITY REPORT 101

Report of Independent Accountants

To the Board of Directors of Federal Home Loan Mortgage Corporation

We have reviewed the management assertion of Federal Home Loan Mortgage Corporation (Freddie Mac) that the Freddie 

Mac Metrics (metrics) referenced in the Sustainability Accounting Standards Board (SASB) Index and Metrics, as Modified

table and included in the SASB Metrics, as Modified section of the accompanying Freddie Mac Sustainability Report 

(excluding the number of rental units financed metrics presented as part of the FN-IB-410a.2 metric) as of or for the years 

ended December 31, 2022, 2021, and 2020, other than certain qualitative metrics, denoted by an * in the SASB Index and 

Metrics, as Modified table, which reflect information for 2022, unless otherwise indicated, are presented in accordance 

with the assessment criteria set forth in the SASB Metrics, as Modified section. Freddie Mac’s management is responsible for 

its assertion and for the selection of the criteria, which management believes provide an objective basis for measuring and 

reporting on the metrics. Our responsibility is to express a conclusion on management’s assertion based on our review.

Our review was conducted in accordance with attestation standards established by the American Institute of Certified Public 

Accountants (AICPA) in AT-C section 105, Concepts Common to All Attestation Engagements, and AT-C section 210, 

Review Engagements. Those standards require that we plan and perform the review to obtain limited assurance about 

whether any material modifications should be made to management’s assertion in order for it to be fairly stated. The 

procedures performed in a review vary in nature and timing from, and are substantially less in extent than, an examination, 

the objective of which is to obtain reasonable assurance about whether management’s assertion is fairly stated, in all material 

respects, in order to express an opinion. Accordingly, we do not express such an opinion. Because of the limited nature of 

the engagement, the level of assurance obtained in a review is substantially lower than the assurance that would have been 

obtained had an examination been performed. We believe that the review evidence obtained is sufficient and appropriate 

to provide a reasonable basis for our conclusion.

We are required to be independent and to meet our other ethical responsibilities in accordance with relevant ethical 

requirements related to the engagement.

The firm applies the Statements on Quality Control Standards established by the AICPA and, accordingly, maintains a 

comprehensive system of quality control.

The procedures we performed were based on our professional judgment. In performing our review, we performed 

inquiries, read relevant policies to understand terms related to relevant information about the metrics, reviewed supporting 

documentation in regard to the completeness and accuracy of the data in the metrics on a sample basis, and performed 

analytical procedures.

As discussed in management’s assertion, in 2022, Freddie Mac changed the criteria related to the FN-MF-270a.1 metric.

Based on our review, we are not aware of any material modifications that should be made to Freddie Mac’s management 

assertion in order for it to be fairly stated.

Appendix

PricewaterhouseCoopers LLP | 655 New York Avenue NW, Washington, DC 20001 | T: (202) 414 1000 | www.pwc.com/us

Washington, DC

September 7, 2023
SUSTAINABILITY REPORT 102

Management Defined Metric Response / Location

Governance

a) Describe the Board’s oversight of climate-related risks 

and opportunities Pages 17, 62

b) Describe management’s role in assessing and managing 

climate-related risks and opportunities Pages 17, 63

Strategy

a) Describe the climate-related risks and opportunities the 

organization has identified over the short, medium and long term Pages 18-19, 26-30

b) Describe the impact of climate-related risks and opportunities 

on the organization’s businesses, strategy and financial planning Pages 20-30

c) Describe the resilience of the organization’s strategy, taking into 

consideration different climate-related scenarios, including a 2°C 

or lower scenario

Not disclosed

Risk management

a) Describe the organization’s processes for identifying 

and assessing climate-related risks Pages 31-32

b) Describe the organization’s processes for managing 

climate-related risks Page 32

c) Describe how the processes for identifying, assessing and 

managing climate-related risks are integrated into the organization’s 

overall risk management

Pages 32

Metrics

a) Disclose the metrics used by the organization to assess 

climate-related risks and opportunities in line with its strategy 

and risk management process

Page 32

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 

greenhouse gas (GHG) emissions, and the related risks Not disclosed

c) Describe the targets used by the organization to manage 

climate-related risks and opportunities and performance 

against targets

Not disclosed

Appendix

TCFD Index
SUSTAINABILITY REPORT 103

Purpose Planet Practices People

Sustain/Communicate

Important to External Stakeholders

Importance to Stakeholders

Importance to Business Success

Monitor, Comply, Manage

Tablestakes

Prioritize

Strategic Issues

Continue Internal Efforts

Important for Business Success

ESG Integration in 

Financial Analysis Wealth Inequality

Community 

Development

Public Policy & 

Advocacy

Business Ethics

Employee Wellness, 

Health & Safety

Access to 

Finance

Human Rights

Talent Attraction & 

Retention

Training & 

Development

Disaster

Preparedness

Consumer Financial 

Protection

Consumer 

Financial Health

Diversity & 

Inclusion

Compensation & 

Benefits

Executive 

Compensation & 

Incentives

Responsible 

Use of Data

Responsible 

Foreclosure

Climate Risk & 

Resilience

Systematic Risk 

Management Transparency

Housing 

Affordability

Board Compensation, 

Independence, 

& Diversity

Sustainable &

Efficient Housing

Operational 

Environmental 

Footprint

Greenhouse Gas 

(GHG) Emissions

Data Privacy & 

Cyber Security

Appendix

Materiality Matrix as of 2020
SUSTAINABILITY REPORT 104