Social Bond Indicator Provides Insight into Programmatic Social Bond Issuance

WASHINGTON, June 6, 2024 /PRNewswire/ — Fannie Mae (OTCQB: FNMA) released a new disclosure for its single-family mortgage-backed securities (MBS), the Social Indicator. This disclosure helps investors easily identify MBS issued since March 1, 2024 that meet the criteria outlined in Fannie Mae’s Single-Family Social Bond Framework.

“We’re pleased to provide a social label to help investors better identify pools that are highly aligned with Fannie Mae’s mission,” said Devang Doshi, Senior Vice President, Single-Family Capital Markets. “With the Social Indicator, investors using our PoolTalk^® and Data Dynamics^® platforms and other third-party systems, such as Bloomberg, can now easily identify the over $3.6 billion in single-family social bonds that Fannie Mae has issued to date and monitor future issuance to analyze for fit in their portfolio.”

This latest disclosure enhancement is another step Fannie Mae has taken to attract new sources of capital to the U.S. mortgage market.

“Since March, Fannie Mae’s Whole Loan Conduit has offered monthly issuances of over $600 million in Social MBS to investors, and plans to continue to issue these bonds programmatically,” said Nick Sapirie, Vice President, Single-Family Capital Markets. “These MBS offer an attractive profile to investors with a social objective, and those without. The premiums that investors pay for these securities help to encourage lending to the borrowers we are chartered to support, a dynamic we’ve highlighted in a recent Perspectives blog and research paper. We’ve also seen consistent issuance from several MBS lenders using our platform.”

Fannie Mae’s Single-Family Social Bonds are backed by loans to populations that typically face barriers to obtaining affordable housing or access to credit. Fannie Mae’s Mission Index disclosure is the foundation of the Single-Family Social Bond Framework, which adheres to global standards and is validated by a Second Party Opinion.

“Fannie Mae’s Mission Index and single-family social bond framework have significantly increased market transparency by providing pool-level insights into the underlying loans in collateral pools,” said Dennis Lee, Securitized Credit Analyst Team Leader, and Ramon de Castro, Portfolio Manager, MBS and RMBS Strategies, both of T. Rowe Price Associates, Inc. “Fannie Mae’s thoughtful approach gives us confidence that proceeds are being efficiently allocated to target populations, generating improved outcomes for both target populations and investors, as well as enabling us to share tangible metrics of social impact in U.S. housing with clients.”

In line with social bond practices, Fannie Mae will also provide annual impact reporting to help the market understand the social impact of the loans underlying their investments.

To learn more about how premiums investors pay for MBS promote mortgage lending, read “Benefiting Borrowers with a Creative MBS Disclosure Solution.”

Related Links:

Single-Family Social Bonds

The Mission Index^TM

Second Party Opinion

PoolTalk^®

Data Dynamics^®

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Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit: fanniemae.com | Twitter | Facebook | LinkedIn | Instagram | YouTube | Blog

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This press release does not constitute an offer to sell or the solicitation of an offer to buy securities of Fannie Mae.  Nothing in this press releases constitutes advice on the merits of buying or selling a particular investment.  Any investment as to any purchase or sale of securities referred to herein must be made solely on the basis of information contained in the MBS Prospectus and the related Prospectus Supplement, and no reference may be placed on the completeness or accuracy of the information contained in this press release. 

You should not deal in securities unless you understand their nature and the extent of your exposure to risk.  You should be satisfied that they are suitable for you in light of your circumstances and financial position. If you are in any doubt, you should consult an appropriately qualified financial advisor. 

This release includes forward-looking statements, which are based on Fannie Mae’s present intent, beliefs or expectations, but forward-looking statements are not guaranteed to occur and may not occur.  Actual results may turn out to be materially different from these statements due to a variety of factors, including, but not limited to, those discussed in “Risk Factors” and elsewhere in the MBS Prospectus, the related Prospectus Supplement and the documents incorporated by reference therein[, including in the “Forward-Looking Statements” and “Risk Factors” sections of Fannie Mae’s annual report on Form 10-K for the year ended December 31, 2023 and its quarterly report on Form 10-Q for the quarter ended March 31, 2024].  All forward-looking statements are made as of the date of this press release, and Fannie Mae assumes no obligation to update this information.

SOURCE Fannie Mae