Energy and Affordability in Housing Finance

This briefing describes how the US government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac are integrating energy efficiency into their 'Duty to Serve' plans to reduce the financial burden of utility costs for low- to moderate-income (LMI) households.

• Low-income households in the United States face a significant energy burden, spending an average of three times more on heating and cooling than the average household, with costs reaching 20 percent to 50 percent of monthly earnings in certain regions.
• Under the Housing and Economic Recovery Act of 2008, Fannie Mae and Freddie Mac are mandated by a "Duty to Serve" to improve mortgage capital distribution for underserved markets, including rural, manufactured, and affordable housing preservation.
• Fannie Mae and Freddie Mac have incorporated energy and water conservation considerations into their 2018-2020 Duty to Serve action plans following advocacy from the Rocky Mountain Institute (RMI) and other partners.
• The GSEs are implementing specific measures to improve LMI housing: Freddie Mac is conducting a study on how energy efficiency affects home valuations and loan performance, while Fannie Mae has updated its selling guide to increase flexibility for its HomeStyle® Energy financing product, which now also covers upgrades for resilience against environmental disasters.

APA

RMI (2018). Energy and Affordability in Housing Finance. https://rmi.org/resources/energy-and-affordability-in-housing-finance/

Chicago

RMI. Energy and Affordability in Housing Finance. 2018. https://rmi.org/resources/energy-and-affordability-in-housing-finance/.

Wikipedia

{{cite report |author=RMI |title=Energy and Affordability in Housing Finance |date=13 June 2018 |url=https://rmi.org/resources/energy-and-affordability-in-housing-finance/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2018energy, author = {{RMI}}, title = {{Energy and Affordability in Housing Finance}}, institution = {RMI}, year = {2018}, month = jun, url = {https://rmi.org/resources/energy-and-affordability-in-housing-finance/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }