Single-Family Green MBS
Single-Family Green Mortgage-Backed Securities (MBS) are another demonstration of Fannie Mae's commitment to leading and innovating in green finance.
Fannie Mae issues Single-Family Green MBS, which 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.
Fannie Mae requires the ENERGY STAR® Certification for New Homes (Residential) designation as a baseline for loans underlying its Single-Family Green MBS because the certification is recognized for its:
- Nationally and globally distinguished standard for energy efficiency;
- Achievement of at least 10% more efficiency than homes built to code and a 20% improvement on average; and,
- Independent verification by trained and certified Home Energy Rating Companies.
Fannie Mae partners with PEG, LLC to independently verify that all properties underlying the MBS received the certifications.
Future Single-Family Green MBS issuances may include other eligible green building certifications.
Single-Family Green Bonds Issuance
Fannie Mae has issued the following Single-Family Green MBS:
Rigorous standards, transparency, and accountability to investors are the foundations of Fannie Mae’s Green Bond Business — 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.
S&P Global Shades of Green Second Opinion
The Single-Family 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. Shades of Green Second Opinions are independent, research-based evaluations of green bond investment frameworks to determine the environmental robustness of green bonds and offer investors better insight into the environmental quality of these bonds. Shades of Green recognized that Fannie Mae's single-family green MBS business aligns with the International Capital Markets Association's Green Bond Principles, establishing our green MBS as certifiable green investments.