Freddie Mac Social Impact Bond Program to Help Fund Affordable Housing

The federal role in providing affordable housing takes various forms, but is mainly focused on subsidies or underwriting for private sector housing. Freddie Mac, the government-sponsored enterprise that purchases mortgage shares and pools them for resale as security investments, is a major conduit for this. In September, the corporation announced a new Social Impact Bond (SIB) product that focuses on multifamily properties, using the proceeds from loans to finance affordable housing.