Multifamily Green MBS
The Fannie Mae 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 structure) 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 support properties with Green Building Certifications and the retrofitting of U.S. rental housing stock 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 receiving Green Financing to report the property's annual ENERGY STAR® score for tracking of energy performance over the life of the loan. Learn more about the Fannie Mae Green Measurement and Verification Service here.
Benefits of Fannie Mae DUS® MBS
- Guaranty of timely payment of principal and interest
- Superior call and extension protection
- Lower spread volatility relative to other products with similar collateral
- Stable cash flows that are easy to model
Positive Triple Bottom Line Impact
- 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
Green Bond Issuances
The Green Bond issuances download file contains:
- A summary of all Green MBS issuances and all Green REMIC tranches
- A listing of all multifamily Green MBS (including Special Affordable Lenders)
- A listing of REMICs that included a Green tranche
Green MBS Issuances
Multifamily Green Bond Impact Report
A decade ago, we recognized our nation’s need for more affordable, environmentally sustainable, and resilient housing. In response, we launched our Multifamily Green Financing Business and made it our mission to help address this need.
We developed new multifamily products that created smart, innovative financing solutions to incorporate environmental-savings concepts, including water and energy efficiency, into traditional mortgage lending.
Today, 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. 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.
These reports demonstrate our commitment to setting bold standards for achievement of the Triple Bottom Line impacts. They detail how retrofitting existing properties and building new green-building-certified properties helps create new jobs and cuts utility costs while reducing greenhouse gas emissions and energy and water use.
Check out our triple bottom line success in past years. Multifamily Green Bond Impact Report: 2012-2018 (PDF)
Green Financing Criteria & Impact
Environmental Impact per CUSIP: Green MBS and Green REMICs
Fannie Mae Green MBS are a type of Multifamily DUS MBS, which generally are secured by a single multifamily loan collateralize by a single multifamily property. In addition to issuing single-asset backed DUS MBS, our Fannie Mae DUS business provides the opportunity for re-securitization of our DUS MBS into structured products, like Fannie Megas® (single class pass through structure) or multiclass Real Estate Mortgage Investment Conduits (REMICs), which are backed by multiple DUS MBS. 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).
The detailed requirements of our green lending platform enable us to estimate the projected environmental impact of each Green MBS and Green REMIC CUSIP.
Multifamily Green Bond Framework
Cicero Second Opinion of Fannie Mae Green Bonds
In June 2018, Fannie Mae engaged the Center for International Climate Research (CICERO) 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. The meanings of the different shadings are explained in the CICERO opinion which can be accessed via the link below.
CICERO recognized 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
Learn more about Fannie Mae's commitment to ESG.