Single-Family Green MBS

New Green MBS Delivery and Pooling Options


Lenders can now deliver both whole loan and MBS pools and take advantage of a new Fannie Mae Green Majors® pool option.

Read the announcement 

 

Support efficient and sustainable housing with Single-Family Green MBS

Our Single-Family Green mortgage-backed securities (MBS) demonstrate our commitment to leading and innovating in green mortgage financing. We are striving to improve sustainability in the homes we finance and the communities we serve by increasing energy and water efficiency and reducing greenhouse gas emissions.

Our Single-Family Green MBS can be purchase money or refinance mortgage loans backed by newly constructed single-family residential homes that have received approved green building certifications within the last five years.

The Single-Family Green MBS program offers numerous benefits for lenders, investors, builders and borrowers.

  • Potential market-based pricing incentives for eligible whole loans backed by green building certifications (GBC).1

  • Reduction in utility costs for borrowers through increased energy and water efficiency.

  • Potential to realize greater reputational value through increased visibility for participating lenders and builders.

  • Tax incentives for builders for each ENERGY STAR®/ DOE Zero Energy Ready home construction.

  • Potential for higher property valuations due to the home’s lower environmental impact and potential for cost savings.

  • Confidence in the data integrity of the loans securitized in our Single-Family Green MBS.2

  • Annual Impact reporting that provides visibility into the projected measurable impact on the environment.

 

1“Green” pricing is available and will adjust based on market conditions and support of the program.

2We developed a validation process to ensure properties underlying the MBS received an eligible certification.

Our Single-Family Green MBS includes purchase money or refinance mortgage loans backed by newly constructed single-family residential homes that have received approved green building certifications within the last five years.

Step 1

Identify loans secured by residential homes that are green building certified within the last five years.

Note: EarlyCheck™ will help lenders identify eligible loans with a new observational message.

Step 2

Submit loans through the Whole Loan Conduit or Loan Delivery for MBS executions with the appropriate Special Feature Codes (SFCs) and/or Future Feature Code (FFC).

Step 3

Loans undergo a verification process to ensure that the properties securing these loans have received an eligible GBC prior to final delivery.

Step 4

Once verified, we will pool whole loans into Green MBS and allow lenders to deliver swaps/ lender-formed pools to us in exchange for Green MBS.

Review the requirements for delivering whole loans and/or pools as part of the program.

Lender
  • Eligible to deliver loans through Fannie Mae’s Whole Loan Conduit and/or MBS execution.
Loan eligibility
  • Variable and fixed-rate mortgages.
  • Purchase or refinances within five years of the property green building certification date.
    • For whole loans, they must be sold to Fannie Mae within five years of the property’s certification year.
    • For loans to be delivered in a MBS pool, they must be in a pool with an issuance year within five years of the property’s certification year.
  • Standard max LTV/CLTV/HCLTV per Eligibility Matrix.
Eligible property/ occupancy
  • Newly constructed properties with an eligible green building certification or properties built with an eligible green building certification date within five years of the loan delivery date.
  • All eligible property types permitted.
  • 1-4 units.
Collateral and property valuation
  • Standard Selling Guide.
Pricing/ lender incentives
  • Standard LLPAs.
  • Additional market-based pricing incentives for whole loans.
Mortgage insurance (MI)
  • Standard MI requirements.
Delivery channel
  • Whole loan and MBS execution.
Delivery requirements
  • For whole loans, the lender should contact their Fannie Mae Account Team.
  • Loans underlying a pool must be delivered with Special Feature Code 784 and/or 881 and the pool with Future Feature Code 208.

 

Emphasizing green building and sustainability supports one of our core values, ‘We grow for good.’

Jeremy Collett, Executive Director of Capital Markets, Guaranteed Rate

home construction

               Single Family Green MBS Resources

Ready to go green?

If you can answer “yes” to the questions below, contact your Fannie Mae account team to learn more about the program and discuss how you can get started.

green circle check

Do you currently deliver loans through Fannie Mae’s Whole Loan Conduit or MBS execution?

green circle check

Are you able to identify loans secured by newly constructed residential homes that meet eligible green building certifications? (e.g. ENERGY STAR Certified Homes Version 3.1 or higher)? If yes, which certifications?

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