source:
  type: guide
  id: fhlmc-4606.4
  authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4606.4 — Energy
    reports
  description: Freddie Mac Single-Family Seller/Servicer Guide Section 4606.4 — Energy
    reports.
  coverage_tier: operative
obligations:
- id: fhlmc-4606.4-full
  canonical_id: fhlmc-4606.4-full
  section: Freddie Mac Single-Family Seller/Servicer Guide Section 4606.4 — Energy
    reports
  type: do
  tags:
  - regulator-direct
  - fhlmc
  - freddie-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Freddie Mac Single-Family Seller/Servicer Guide Section 4606.4 — Energy
      reports
    source_class: fhlmc-guide
    source_url: https://guide.freddiemac.com/ci-guide
    snapshot_id: 5869ee9e606cd4ae
    fetched_at: '2026-05-23T00:27:40Z'
    content_hash: sha256:9a1b23e5024bb369e7a59d36b3702383c11ace68b5d209fdef791bc8f955c637
    paragraph_quote: '4606.4: Energy reports (11/06/24) This section contains requirements
      related to: ■ Eligible energy reports ■ Energy report conditions ■ Energy report
      exceptions when proceeds are used to finance renewable energy sources ■ Energy
      report alternatives For Mortgages used to finance eligible improvements with
      an aggregate cost less than or equal to $6,500, an energy report is not required.
      For Mortgages used to finance eligible improvements with an aggregate cost greater
      than $6,500, an energy report must be obtained and retained in the Mortgage
      file. Freddie Mac Single-Family Seller/Servicer Guide Chapter 4606 As of 05/06/26
      Page 4606-7 An energy report is not required for a “no cash-out” refinance Mortgage
      used to pay an Existing Debt. (a) Eligible energy reports Energy reports must
      be one of the following: ■ Home Energy Rating Systems (HERS) report completed
      by a certified Residential Energy Services Network (RESNET®) Home Energy Rater
      reflecting a HERS Index of 90 or below (http://www.resnet.us/directory/search)
      ■ Department of Energy Home (DOE) Energy Score Report completed by an independent
      Home Energy Score Certified Assessor™ reflecting a DOE Home Energy Score of
      six or greater (https://betterbuildingssolutioncenter.energy.gov/home-energy-score/home-
      energy-score-map) ■ Comparable rating report or audit completed by a certified
      home energy rater or consultant indicating the property is a high-performing
      energy efficient property (b) Energy report conditions Energy reports must:
      ■ Identify the energy improvements and expected cost to complete these improvements
      ■ Specify the actual or expected monthly or annual energy savings ■ Verify that
      the energy improvements are cost effective. Energy improvements are cost effective
      when the expected cost to complete these improvements, including maintenance,
      is less than the present value of the energy saved over the useful life of these
      improvements, and ■ Be dated no more than 24 months before or 24 months after
      the Note Date, as applicable The cost of the energy report may be included in
      the total cost of the eligible improvements and must be identified on the Settlement
      Statement if the Borrower is to be reimbursed. (c) Energy report exceptions
      when proceeds are used to finance renewable energy sources If the energy improvements
      are related to renewable energy sources (e.g., solar panels, hydropower systems,
      wind turbines or geothermal systems), and an energy report is not available
      to demonstrate their cost effectiveness, the cost effectiveness may be demonstrated
      by: Freddie Mac Single-Family Seller/Servicer Guide Chapter 4606 As of 05/06/26
      Page 4606-8 1. Obtaining copies of all invoices and/or receipts, as applicable,
      for the cost of the systems or devices, and 2. Comparing the cost of the systems
      or devices, including maintenance, to the income produced over the life of the
      systems or devices When the income produced exceeds the net cost (including
      any tax credits and rebates) of the systems or devices, the cost effectiveness
      has been demonstrated. The appraiser must document the projected income by utilizing
      PV Value, Ei Value or a similar tool as referenced in Section 5601.4. (d) Energy
      report alternatives For certain eligible improvements, the Seller/Servicer may
      obtain, and, if obtained, must retain in the Mortgage file, alternative documentation
      in lieu of an energy report: Alternative documentation in lieu of an energy
      report Improvement type Permitted alternative documentation ENERGY STAR Energy
      Efficient Products Documentation (e.g., invoices, receipts, printout(s) showing
      the eligible improvements in the list of ENERGY STAR Energy Efficient Products)
      verifying the eligible improvements are ENERGY STAR Energy Efficient Products.
      Health and safety improvements At least one of the following: ■ Copies of all
      invoices and/or receipts, as applicable, documenting the cost of the eligible
      improvements as well as their expected impact to health and safety (e.g., for
      a radon mitigation system, its expected impact on the radon levels in the home)
      ■ A completed United States Environment Protection Agency (EPA) Indoor airPLUS
      (Version 1 (Rev. 04) or higher) Verification Checklist Resiliency and preventative
      improvements to either repair natural disaster damage or improve a home’s ability
      to withstand future natural disasters At least one of the following: ■ Copies
      of all invoices and/or receipts, as applicable, documenting the cost of the
      eligible improvements. This should Freddie Mac Single-Family Seller/Servicer
      Guide Chapter 4606 As of 05/06/26 Page 4606-9 Alternative documentation in lieu
      of an energy report Improvement type Permitted alternative documentation include
      invoices from a contractor for completing the repairs or improving the home,
      if applicable. ■ An Insurance Institute for Business & Home Safety (IBHS) FORTIFIED
      HomeTM designation certificate (i.e., FORTIFIED Roof, FORTIFIED Silver or FORTIFIED
      Gold)'
  judgment: false
