Fannie Mae Green MBS Issuance Reaches $100 Billion
WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) announced today it has completed the issuance of $100 billion of green multifamily mortgage-backed securities (MBS), helping transform housing finance and creating a more sustainable future for U.S. communities. This milestone illustrates how Fannie Mae's scale and capacity can foster liquidity to support the greening of U.S. housing stock.
For more than 10 years, Fannie Mae has been an industry leader in green financing. The company's flagship Multifamily green financing program supports more sustainable and affordable housing for residents in properties financed through its Green Building Certification program and Green Rewards, the company's green property improvement program.
"More than a decade ago, we pioneered green housing mortgage finance to make multifamily housing more energy efficient, resulting in tangible and meaningful benefits for building owners and residents," said Michele Evans, Executive Vice President, Multifamily, Fannie Mae. "Fannie Mae's Multifamily green financing has helped preserve and improve existing housing stock, supporting our efforts to bolster the nation's supply of housing affordable to low- and moderate-income households. As one of the largest issuers of green bonds worldwide, we have fostered a liquid market to support additional green financing and have developed a template for the multifamily marketplace that has attracted investors with its rigor and transparency. We want to thank and acknowledge the support of our DUS® lender partners who worked closely with us to introduce our innovative green financing to the marketplace and helped us attain this notable milestone."
Since April 2020, in addition to creating green financing for multifamily housing, Fannie Mae launched green MBS backed by newly constructed single-family residential homes with green building certifications that meet or exceed the national program requirements for ENERGY STAR® 3.0 Certified Homes. As of November 30, 2021, Fannie Mae has issued 44 transactions pooling loans for newly built single-family homes totaling $486 million.
"This $100 billion milestone reflects Fannie Mae's commitment to creating positive impact and aligning our business activities with measurable environmental, social, and governance (ESG) outcomes," said Laurel Davis, Senior Vice President and Head of Environment, Social, and Governance, Fannie Mae. "During the last 10 years, we have leveraged our position in the marketplace to power substantial growth of an active, global green bond market that supports more affordable and sustainable communities and reduces the environmental impact of the housing sector. We have built on our experience in the multifamily market by recently introducing green finance to the single-family market to help reduce housing's overall carbon footprint and meet new market demand."
Given the company's position at the crossroads of capital markets and the housing market, Fannie Mae is working to accelerate the greening of U.S. housing supply and help reduce the carbon footprint of housing. Fannie Mae provides an opportunity for investors to support green housing finance by enabling them to invest in MBS backed by properties that meet energy- and/or water-efficiency standards. The company's rigorous criteria for energy and water efficiency have set industry standards to transparently project environmental, social, and economic impact and support investor decision-making.
Fannie Mae's Multifamily and Single-Family Green Bond Frameworks are aligned to ICMA Green Bond Principles and received Light Green opinions by CICERO Shades of Green, a leading global provider of green ratings for bonds.
About Green Bonds
Fannie Mae is committed to driving positive impact, building a stronger, safer, and more resilient housing finance system that creates affordable, sustainable housing opportunities for homebuyers and renters across the country. Our Green efforts support the housing market by financing homes and communities that meet energy- and water-saving standards. We offer investors green bonds that build upon our mission where the underlying collateral positively impacts housing infrastructure and the environment. For more information on our green offerings, please visit our green bonds website.
About Fannie Mae
Fannie Mae helps make the 30-year fixed-rate mortgage and affordable rental housing possible for millions of people in America. We partner with lenders to create housing opportunities for people across the country. We are driving positive changes in housing finance to make the home buying process easier, while reducing costs and risk. To learn more, visit:
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