Programmatic Issuance is Part of Fannie Mae’s Broader Environmental, Social, and Governance Efforts
WASHINGTON, DC – January 28, 2021 – Fannie Mae (FNMA/OTCQB) announced today that it has issued a cumulative $111 million of Single-Family Green Mortgage-Backed Securities (MBS) since April 2020, when it first introduced these transactions to the market. The program is part of Fannie Mae’s larger effort to tie its business activities to measurable and positive Environmental, Social, and Governance (ESG) outcomes.
Fifteen offerings, ranging in size from $1.8 million to $15.4 million, have been issued by Fannie Mae in the ten months since the program’s inception. Most recently, in January 2021, Fannie Mae issued three Single-Family Green MBS transactions totaling $17 million, which included loans for properties in Arizona, Maryland, New York, and Texas. The program’s growth is due in part to an increase in the number of participating builder-lenders.
“We are pleased with the growth of our Single-Family Green MBS program and the positive reception from market participants and investors,” said Arthur Johnson, Vice President, Capital Markets, Fannie Mae. “Investors have been drawn to this market because of our commitment to a programmatic issuance of securities pooling mortgages for energy-efficient homes. Also, an increase in the number of lenders participating in this program has helped broaden the geographic diversity of loans pooled in these offerings.”
In 2020, the Single-Family Green Bond Framework received a “Light Green” Second Opinion from CICERO Shades of Green, a leading global provider of green ratings for bonds. The opinion is the result of a research-based evaluation of Fannie Mae’s framework to determine the environmental robustness of the single-family mortgage issuances. Single-Family Green MBS are backed by newly constructed single-family residential homes with ENERGY STAR® certifications that meet or exceed the national program requirements for ENERGY STAR 3.0 Certified Homes.
For details regarding our Single-Family Green MBS program, visit www.fanniemae.com/GreenMBS.
To learn more about Fannie Mae’s commitment to ESG, please visit our ESG page.