Energy and Affordability in Housing Finance

The document discusses the role of government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac in addressing the high energy costs faced by 35 million low- to moderate-income (LMI) households in the US. Under the Housing and Economic Recovery Act of 2008, these GSEs have a 'Duty to Serve' underserved markets. With advocacy from the Rocky Mountain Institute (RMI), the GSEs have incorporated energy and water conservation into their 2018-2020 action plans. Key initiatives include Freddie Mac's study on the impact of energy efficiency on loan performance and home valuations, and Fannie Mae's updates to its HomeStyle® Energy product to allow for energy improvements and disaster resilience upgrades.

• Low-income households in the United States face a severe 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 some regions.
• Fannie Mae and Freddie Mac, which control over 70 percent of the $6.4 trillion residential mortgage-backed securities market, are using their 'Duty to Serve' mandates to improve financing for energy efficiency in affordable single-family housing.
• Freddie Mac is conducting a comprehensive study to analyze how energy efficiency affects home valuations and the performance of loans.
• Fannie Mae has updated its HomeStyle® Energy loan product to increase flexibility for energy improvements and to cover repairs that enhance a home's resilience against environmental disasters like earthquakes, storms, and floods.

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} }