Multifamily Green MBS
Fannie Mae Multifamily Green MBS is a unique type of Multifamily DUS MBS, which is generally a fixed-income single asset security backed by one loan and one property, providing the investor insight into both the environmental and financial attributes of the asset. In addition to Green MBS, our DUS business allows multiple Green MBS to be packaged together and re-securitized into structured products, like Fannie Megas® (single class pass-through structures) or multiclass Real Estate Mortgage Investment Conduits (REMICs). The REMICs and Megas created from DUS MBS owned by Fannie Mae's Multifamily Capital Markets Desk are called Fannie Mae GeMS™ (Guaranteed Multifamily Structures).
Our Green Bond issuances are backed by properties with Green Building Certifications and existing U.S. rental housing stock that is retrofit to become more energy- and water-efficient, resulting in more affordable homes for families and individuals and more cost-effective properties for owners to operate.
Multifamily properties accessing Fannie Mae Green Financing must either:
- Possess a nationally recognized, current Green Building Certification and/or
- Make property improvements that target reductions in energy and/or water use.
Fannie Mae requires owners participating in the Green Bond Business to report the property's annual ENERGY STAR® score for tracking of energy performance over the life of the loan as well as the EPA Water Score to gauge the amount of water savings on an annual basis. Learn more about our Green Measurement and Verification Service.
Positive Triple Bottom Line Impact
We measure success by the positive "Triple Bottom Line" impact in our communities—financial, social, and environmental benefits to property owners, renters, lenders, and investors.
- Financial: Lower credit risk, higher cash flows, and higher property value
- Social: Greater affordability and higher quality, healthier, more durable housing
- Environmental: Lower use of energy and water resources, and greater resiliency
We focus on transparency of these benefits through our at-issuance and ongoing disclosures as well as the publication of our annual Green Bond Impact Report.
Multifamily Green Bonds Issuance
The Green Bond issuances download file contains:
- A summary of all Multifamily Green MBS issuances and Green REMIC tranches
- A list of all Multifamily Green MBS (including Special Affordable Lenders)
- A list of REMICs that included a Green tranche
Rigorous standards, transparency, and accountability to investors are the foundations of Fannie Mae’s Green Bonds — and are critical to our goal of advancing an active and growing global green bond market. That is why we are committed to providing comprehensive, highly transparent disclosures about our securitization process and the estimated environmental, social, and financial impacts of our Green Bonds. The detailed requirements of our green lending platform enable us to estimate the projected environmental impact of each Green MBS and Green REMIC CUSIP.
CICERO Shades of Green Second Opinion
In June 2018, Fannie Mae engaged CICERO Shades of Green, a leading global provider of green ratings for bonds, to review our Multifamily Green Bond framework. CICERO issued a Second Opinion and found that the framework aligns with International Capital Management Association’s (ICMA) Green Bond Principles, an internationally recognized standard for Green Bonds. CICERO provided a Light to Medium shade for Fannie Mae Green Rewards and Light shade for Green Building Certification. CICERO reaffirmed their shades for our multifamily green programs in 2020 and recognizes Fannie Mae for:
- Well-established governance and risk management procedures
- Internal annual review and revision by the Green Financing Business team
- Transparent reporting procedures
- In-house technical expertise and tools