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Green Bonds

Invest in a sustainable future with a leader in green financing

At Fannie Mae, our mission is clear: to deliver stability and affordability to America’s housing market. We do so primarily by purchasing mortgage loans from lenders and securitizing them into mortgage-backed securities (MBS), which we then guarantee.

Our Green efforts support the Single-Family and Multifamily housing markets 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.

Explore our green bonds

Offered through our Multifamily Delegated Underwriting and Servicing (DUS®) business, each DUS MBS is generally secured by a single Green mortgage loan collateralized by one property and features guaranty of timely payments, stable cash flows, and liquidity.

Highlights:

  • Guaranty of timely payment of principal and interest.
  • Stable cash flows that are easy to model.
  • Lower spread volatility relative to other products with similar collateral.
  • Superior call and extension protection.

Since issuing our first Multifamily Green Bond in 2012, Fannie Mae has infused over $85 billion into the global green bonds market through nearly 4,000 individual bonds (through year-end 2020). We also established many of the standards and processes adopted industrywide. Our Multifamily Green Bond Framework received a Light Green Second Opinion from CICERO Shades of Green. One of our two multifamily green loan programs, Green Rewards, received a Light-to-Medium Second Opinion from CICERO Shades of Green.

Learn more here: Multifamily Green MBS

Green Guaranteed Multifamily Structures (GeMS™) are backed by blocks of previously issued Green DUS MBS and offer collateral diversity, tight maturity profiles, and guaranty of timely payments of principal and interest.

Highlights:

  • Composed of numerous DUS MBS and maintain the characteristics of DUS MBS.
  • More diversified than a single green MBS, featuring either property-type diversity or geographic diversity.
  • Readily customized to accommodate reverse inquiry.
  • Backed by collateral selection with consistent credit quality and tight maturity profiles.
  • Issued several times a year.

Learn more here: Green GeMS

Single-Family Green MBS include either purchase money or refinance mortgage loans backed by newly constructed single-family residential homes receiving approved green building certifications within the last five years. Our Single-Family Green Bond Framework received a Light Green Second Opinion from CICERO Shades of Green.

Highlights:

  • Guaranty of timely payment of principal and interest.
  • Require the ENERGY STAR Certification for New Homes (Residential) designation as a baseline because it is a nationally and globally distinguished standard for energy efficiency.
  • Bolstered by independent third-party verification that underlying properties received eligible certifications.

Since the launch on April 22, 2020 to commemorate the 50th anniversary of Earth Day and through year end 2020, Fannie Mae issued nearly $100 million of Single-Family Green MBS in 2020.

Learn more here: Single-Family Green MBS

Investments designed to yield more than financial returns

Learn more about the projected impact of our innovative bonds backed by loans on properties that meet energy- and water- saving standards.

Related Links

Green Bonds Positive Impact

Our green bond issuances in 2012 – 2020 are projected to generate positive environmental, social, and financial outcomes.

Download our 2020 Green Bond Impact Report to learn more.

 Environmental  Social  Economic

All numbers are based on projected impacts.

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9.5B

kilo British Thermal Units (kBtu) of source energy saved

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8.5B

gallons of water saved*

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634K

metric tons carbon dioxide equivalent (MTCO2e) of GHG emissions prevented

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$146M

utility cost savings by multifamily tenants, or an average of $184 per family per year*

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$843

average homeowner utility cost savings per single-family home per year**

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872K

properties retrofitted or green building-certified*

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224K

well-paid jobs created or supported

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$9.5B

wages paid to construct or retrofit properties, contributing $19.9 billion to U.S. gross domestic product (GDP)

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$410M

borrower investment commitment for energy and water efficiency measures on 3,696 properties through the Multifamily Green Rewards Mortgage Loans*

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$2.83

economic output per dollar invested

*Includes estimated impacts only from Fannie Mae Multifamily Green Bonds.

**Includes estimate impacts only from Fannie Mae Single-Family Green Bonds.

Case study – Pax Futura

Pax Futura is Seattle, Washington’s first certified Passive House apartment project – and a real-world demonstration that ultra-high-performance green building can be done at scale. The project is the first Fannie Mae green mortgage loan secured by a property with a green building certification in our Towards Zero Group.

Read more

This communication is for informational purposes only. It does not constitute an offer to sell securities. In particular, it does not constitute an offer to the general public in the European Union. Before considering an investment in any Fannie Mae security, prospective investors should obtain and ensure they have read and understood the offering documents and any related disclosure information related to such securities.