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ABOUT THE PLAN

In 2021, the Federal Housing Finance Agency’s (FHFA) directed 

Freddie Mac and Fannie Mae to prepare and implement threeyear Equitable Housing Finance Plans to advance equity in 

housing finance. Freddie Mac’s ambitious Plan is designed to 

promote sustainable homeownership and rental opportunities 

for traditionally underserved Black and Latino communities 

nationwide. It sets ambitious goals, identifies specific potential 

actions to achieve those goals and requires regular progress 

reports. 

The company’s Plan is an important component 

of Freddie Mac’s expansive, mission-driven work to provide 

liquidity, stability and affordability across all market cycles and in 

all communities nationwide. 

CORE ELEMENTS 

The Plan formalizes Freddie Mac’s commitment to work 

across the industry to create opportunities for families who 

have historically lacked equitable access to sustainable and 

affordable housing. The Plan outlines actions taken over three 

years that are meant to advance equity in both the singlefamily and multifamily housing markets. These actions were 

carefully developed to facilitate homeownership sustainably 

and responsibly, in keeping with the company’s commitment to 

safety and soundness.

The company is exploring action in five key areas:

1. Address the Homeownership Gap

Freddie Mac will introduce new responsible and impactful 

initiatives that are designed to expand access to credit and 

lower costs. Among the many initiatives is a commitment to 

fully explore the use of the Special Purpose Credit Program 

framework to expand access to mortgage funding for 

traditionally underserved minority communities. Under federal 

law, lenders may offer special underwriting or pricing for such 

groups as part of a SPCP. 

Freddie Mac will explore SPCPs to help expand 

homeownership for underserved communities, including 

by lowering the cost of mortgage and title insurance. The 

company will also expand its Automated Collateral Evaluation 

appraisal alternative to help mitigate disparities and reduce 

costs for borrowers. The company will also evaluate its servicing 

policies to help improve borrower outcomes for traditionally 

underserved Black and Latino homeowners.

2. Strengthening Investment within Formerly 

Redlined Areas

Freddie Mac’s Plan seeks to strengthen support for underserved 

renters and multifamily borrowers, expand financing for 

affordable rental housing developers, and help Community 

Development Financial Institutions, minority depository 

Freddie Mac 

Fact Sheet: Equitable Housing Finance Plan
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institutions and smaller banks with improved access to capital. 

Among other activities, the Plan maps out an approach to build 

a Single-Family Social Bond framework that will create new 

securities offerings to support underserved borrowers. It also 

maps out actions to address appraisal and valuation equity 

concerns in both residential and multifamily appraisals. For 

the multifamily market, the Plan outlines actions to support 

emerging developers by financing noncontiguous 2–4-unit 

rental properties in historically underinvested communities.

Freddie Mac is already leveraging public and private 

investments to create and preserve vital, affordable multifamily 

housing, with a focus on communities. The company also plans 

to expand utilization of its renovation products to preserve 

the aging stock of affordable single-family homes, which is 

particularly prevalent in communities of color.

Among other actions outlined in the Plan, Freddie Mac will look 

to enhance existing products and develop offerings designed 

to encourage new construction of multifamily rental housing. 

This will include expanding the use of our forward commitment 

construction take-out financing offerings. The company will 

also analyze the feasibility of supporting the construction 

lending market through either sponsoring the securitization of 

third-party, ground-up construction-to-permanent financing 

on multifamily properties or through developing the capability 

to purchase construction-to-permanent loans. Freddie Mac 

will also implement additional actions to encourage the 

rehabilitation of existing affordable multifamily units in formerly 

redlined areas and other geographic areas of underinvestment. 

3. Financing the Creation and Preservation of 

 Affordable Housing 

Under the Plan, Freddie Mac will expand on the company’s 

Multifamily credit-building initiative with new tools aimed at 

encouraging financial empowerment, wealth-building, tenant 

protections and resident services. These efforts seek to improve 

the gaps in social and economic mobility that often impact 

renters, particularly traditionally underserved Black and Latino 

households. 

Among other actions, Freddie Mac will conduct a nationwide 

analysis of existing tenant protections and work with market 

stakeholders, including tenants’ rights advocates and 

multifamily developers, owners and property managers, 

to develop a set of baseline tenant protections that could 

be applied to future Freddie Mac-financed properties. The 

4. Increasing Opportunities for Renters

5. Helping to Address Disparities Among Black 

 and Latino Communities

The Plan introduces several new efforts aimed at improving 

access to capital for emerging diverse multifamily developers 

to increase wealth-building and enhance the ability for people 

to invest in and grow their communities. Additionally, the 

company will expand its “Develop the Developer” education 

and financing opportunities for emerging minority and female 

developers whose focus is on developing and redeveloping 

their own communities.

IMPLEMENTATION 

Freddie Mac has already begun implementation of the Plan. 

For each of the actions discussed in the Plan, the company 

has laid out specific and measurable goals with 

an accompanying timeline from 2022-2024. 

Read Freddie Mac’s Plan and learn more about the 

company’s diversity, equity and inclusion efforts.

company will also examine the accessibility and efficacy of 

Housing Choice Vouchers and develop strategies that Freddie 

Mac can implement to increase their acceptance.