Second-Party Opinion Download

Sustainalytics is of the opinion that the Freddie Mac Multifamily Social Bonds Framework (“Framework”) is credible, impactful and aligns with the four core components of the Social Bond Principles 2020. This assessment is based on the following:

USE OF PROCEEDS

The eligible category for the use of proceeds, Affordable Housing, is aligned with those recognized by the Social Bond Principles that seek to achieve positive socio-economic outcomes for target populations. Sustainalytics considers that the eligible category will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically Goals 10 and 11.

PROJECT EVALUATION/SELECTION

Freddie Mac will select and evaluate projects in line with its existing policies and procedures for risk management and underwriting. Freddie Mac will be responsible for conducting all underwriting and credit reviews. Loans intended to be securitized are underwritten to the same standards as loans that are to held in its investment portfolio. Sustainalytics considers the project selection process to be in line with market practice.

MANAGEMENT OF PROCEEDS

Social bonds proceeds will be managed in accordance with Freddie Mac’s existing policies for capital management. The funds raised under the Framework have been or will be used exclusively for activities that meet the eligibility criteria, and Freddie Mac intends to allocate all of the proceeds accordingly. This is in line with market practice.

REPORTING

Freddie Mac intends to provide investors with both asset-and-portfolio level reporting on an annual basis. Portfolio-level performance data will take into consideration various social impact characteristics, including the level of affordability of properties financed. Freddie Mac will publish all relevant information associated with bond issuances under the Framework on its website. Sustainalytics views Freddie Mac Multifamily’s allocation and impact reporting as aligned with market practice.