Green Bonds Hero

Green Bonds

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 rental 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.

Multifamily Green MBS

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.

Since issuing our first Multifamily Green Bond in 2012, Fannie Mae has infused nearly $120 billion into the global green bonds market through over 4,900 individual bonds (through March 31, 2024). We also established many of the standards and processes adopted industrywide.

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  • 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.

Multifamily Green Bond Framework  

Green GeMS

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.

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  • Composed of numerous DUS MBS and maintain the characteristics of DUS MBS.
  • More diversified than a single Green MBS, featuring geographic and borrower diversity.
  • Customizable cash flows based on duration, average life, coupon, convexity profile, yield, and price.
  • Backed by collateral selection with consistent credit quality and tight maturity profiles.
  • Issued several times a year.

Single-Family Green MBS

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 S&P Global Shades of Green.

Since the launch on April 22, 2020 to commemorate the 50th anniversary of Earth Day and through March 31, 2024, Fannie Mae has issued over $3.9 billion of Single-Family Green MBS.

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  • 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.
  • Lower spread volatility relative to other products with similar collateral.
  • Bolstered by independent third-party verification that underlying properties received eligible certifications.

ENERGY STAR® is a registered trademark of the U.S. Environmental Protection Agency.

S&P Global Single-Family Green Bond Second Opinion  

Single-Family Green Bond Framework  

Green Bonds positive impact

Our Green Bond issuances in 2012-2023 are projected to generate positive environmental and social outcomes.

 Environmental  Social

All numbers are based on projected impacts.

1 Multifamily Green Bonds only.
2 Multifamily Green Bonds backed by Green Rewards mortgage loans only.
3 Single-Family Green Bonds only.
4 Fannie Mae Multifamily Social Bonds from 2021-2023. Number of units are at-issuance sum of restricted affordable and unrestricted affordable. Unrestricted affordable includes securities issued on or after May 1, 2022 backed by properties with a minimum of 80% of units affordable to households earning no more than 60% of Area Median Income (AMI) based on rent rolls submitted at acquisition. Please refer to the Fannie Mae Social Bond Framework for additional information.

Refer to Fannie Mae's Green Bond Impact Methodology for more information on our impact methodology.

This document is for general information purposes only. The information presented in this document is neither an offer to sell nor a solicitation of an offer to buy any Fannie Mae security mentioned herein or any other Fannie Mae security. The projected energy, emissions, and water usage savings are Fannie Mae’s estimates of the potential savings at the related mortgaged properties that may result from the implementation of the efficiency improvements required by the indicated green financing programs. There can be no assurance that any particular savings will be achieved at any given mortgaged property. Fannie Mae disclaims any liability for the failure of any mortgaged property to achieve any particular energy, emissions, or water usage savings. The estimates are solely as of the date hereof and Fannie shall have no obligation to provide updated estimated or actual savings information.


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.

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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.