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Freddie Mac's Multi-Billion Dollar Bond Aims To Increase Affordable Homeownership

Navi Persaud
Oct 08, 2021
Photo of a wooden house cut-out with the sun shining through it. Credit:

Freddie Mac announced the offering of $3 billion in single-family affordable housing bonds, with the goal of supporting affordable homeownership in historically underserved markets.

The company kicked off the effort by offering $285 million in uniform mortgage-backed securities, backed by loans purchased through its Home Possible program. The Home Possible program was created with low-income borrowers in mind, featuring more options and credit flexibilities, according to the company. 

“Freddie Mac is committed to creating additional opportunities for families to access quality housing—and today we are announcing a major action in support of that goal,” said Michael DeVito, CEO of Freddie Mac. “Through this new, multi-billion-dollar affordable housing bond program, we are providing focused liquidity, stability, and affordability designed to bring sustainable homeownership opportunities to lower-income borrowers across the country. This is also intended to give investors a vehicle to invest in underserved communities.”

“This bond offering is another way Freddie Mac is bringing additional support to the housing market—and are part of our comprehensive effort intended to address longstanding issues of inequality in housing,” said Pam Perry, vice president, Single-Family Equitable Housing. “In the future, look for us to expand this offering and strengthen our commitment to this important work.”

The GSE reports that it purchased 81,000 Home Possible mortgages in the first six months of 2021. Freddie Mac also revealed that it made homeownership possible for 623,000 families with $121 billion in Home Possible mortgages since 2015. 

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