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 – that provides 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 Multifamily Green Bond issuances are backed by properties with qualifying U.S. Green Building Certifications or properties that will be retrofit post-closing to improve energy and water efficiency. These properties help reduce utility costs for families and individuals and are more cost-effective properties for owners to operate.
Eligible Loans
Multifamily loans back by 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.
Multifamily Green Bond issuance information can be accessed on DUS Disclose®, our Multifamily disclosure platform.
The Multifamily Green Bond Framework received a Light Green Second Opinion from S&P Global Shades of Green, a leading global provider of green ratings for bonds. The review found that Fannie Mae's Multifamily Green MBS program aligns with the International Capital Market Association's Green Bond Principles, establishing our green MBS as certifiable green investments.