Announcement

Fannie Mae Updates Single-Family Green Bond Framework

September 12, 2024
Water certifications now considered as part of Green MBS

Fannie Mae has updated its Single-Family Green Bond Framework, accompanied by a refreshed Second Party Opinion from S&P Global Ratings. After introducing solar eligibility requirements in our June 2023 Framework, the updated framework now includes water saving programs in addition to placing more rigor on eligible green building certifications. These enhancements to our Single-Family Green Bond program highlight Fannie Mae's commitment to positively impact homeowners, as well as the environment and the communities we live in.

Fannie Mae strives to set meaningful efficiency targets for the eligibility criteria for its Single-Family Green Bonds.

  • With the introduction of its Green MBS Program, Fannie Mae requires green building certifications on newly constructed properties that achieve at least 10% more efficiency than properties built to state energy codes.
  • In 2023, Fannie Mae introduced the eligibility of solar photovoltaic (PV) systems on properties, requiring at least a 20% reduction in a home's annual electricity consumption.
  • This updated framework now includes the addition of water certifications for mortgage loans backed by properties located in water-stressed or water-scarce areas that achieve a minimum of 30% water use reduction.

Additionally, the updated framework provides a revised list of Eligible Green Building Certifications (GBCs) assessed on an updated baseline of the 2015 International Energy Conservation Code (IECC) from the previous baseline of the 2006 IECC. Eligible GBCs are evaluated annually to determine if such certifications meet Fannie Mae's expected energy standards for newly built homes.

Fannie Mae's Single-Family Green Bond Framework received a Light Green Second Opinion from S&P Global Ratings, a leading global provider of green ratings for bonds.

To learn more about Fannie Mae's Single-Family Green MBS program, visit our webpage.

For questions, please contact the Fannie Mae Investor Help Line at 1-800-232-6643, Option 3 or by e-mail.