Fannie Mae Expands Green Bond Program With Single-Family Green MBS Issuance

Fannie Mae has issued its latest single-family Green Mortgage-Backed Securities under its Green Bond Program. The company made the decision after receiving the Light Green Second Opinion from Cicero Shades of Green, a global provider of green ratings for bonds.

"Our new Single-Family Green MBS issuances further our commitment to sustainability in our business, the homes we finance, and the communities we serve. These transactions are the latest step in a journey – begun a decade ago when we introduced green finance to the multifamily market – that increasingly ties Fannie Mae’s business activities to measurable environmental, social, and governance outcomes," according to Fannie Mae CEO Hugh R. Frater.

Fannie Mae has reportedly issued over $40 million in single-family Green MBS after the first bond was issued on April 22, 2020. “These offerings have attracted investor interest and serve to enhance liquidity in the single-family mortgage finance market,” said Renee Schultz, senior vice president of capital markets for Fannie Mae.

For more about Fannie Mae's single-family Green Mortgage-Backed Securities, click here.