Fannie Mae Exceeds $3 Billion in Single-Family Labeled Social Bond Issuance

By klrw460 June 6, 2024

WASHINGTON, DC – Fannie Mae (FNMA/OTCQB) has unveiled the Social Indicator, a new feature for its single-family mortgage-backed securities (MBS) disclosures. This tool aids investors in identifying MBS issued since March 1, 2024, that align with the criteria set in Fannie Mae’s Single-Family Social Bond Framework.

“We are excited to offer a social label to help investors identify pools that closely align with Fannie Mae’s mission,” said Devang Doshi, Senior Vice President, Single-Family Capital Markets. “The Social Indicator allows investors using our PoolTalk® and Data Dynamics® platforms, along with third-party systems like Bloomberg, to easily identify the over $3.6 billion in single-family social bonds Fannie Mae has issued and to monitor future issuances for portfolio alignment.”

This enhancement aims to attract new capital sources to the U.S. mortgage market.

“Since March, Fannie Mae’s Whole Loan Conduit has been offering over $600 million in Social MBS to investors monthly and plans to continue this issuance programmatically,” said Nick Sapirie, Vice President, Single-Family Capital Markets. “These MBS appeal to both socially-driven investors and those with other objectives. The premiums paid for these securities support lending to borrowers we aim to help, as highlighted in our recent Perspectives blog and research paper. We’ve also seen steady issuance from several MBS lenders using our platform.”

Fannie Mae’s Single-Family Social Bonds support loans to populations that often face difficulties accessing affordable housing or credit. The Mission Index™ disclosure underpins the Single-Family Social Bond Framework, adhering to global standards and validated by a Second Party Opinion.

“Fannie Mae’s Mission Index and single-family social bond framework have greatly increased market transparency by providing detailed insights into the loans in collateral pools,” said Dennis Lee, Securitized Credit Analyst Team Leader, and Ramon de Castro, Portfolio Manager, MBS and RMBS Strategies at T. Rowe Price Associates, Inc. “Fannie Mae’s approach assures us that funds are efficiently allocated to target populations, resulting in better outcomes for both the target populations and investors, and enabling us to share concrete social impact metrics in U.S. housing with our clients.”

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