Lending with Purpose
Powered by the Single-Family Mission Index
The Single-Family Mission Index provides an enduring solution for lenders to create a stronger housing market with more homeownership opportunities for qualified borrowers.
New Mission Score product grids
Take advantage of market-based incentives for loans with high Mission Scores with our new product grids.
Driving Change Through Mission-Oriented Lending
Designed to reinforce our mission to provide affordability, liquidity, and stability to the housing market, the Mission Index enables lenders to drive positive impact for the borrowers and communities they serve.
By applying numerous attributes across income, borrower, and property characteristics, lenders can aim to serve a greater number of borrowers in their markets, with the potential to realize greater financial and reputational value.
The Mission Index supports originating and underwriting loans to qualified borrowers in line with our mission objectives.
Mission-oriented loan financings have the potential to reward lenders for lending to underserved borrowers and communities, helping to create social MBS in response to investor demand.
The Mission Index balances investors' desire for information with protecting the privacy of borrowers’ personal information while minimizing disruption to UMBS and the TBA markets.
Explore the Drivers of the Mission Index
Learn how the 3 mission categories, Mission Criteria Share (MCS), and Mission Density Score (MDS) work together to support investing and lending that aligns with our mission.
Methodology
Three dimensions reflect how we organize our broader commitments to serve those who need it most.
Scoring Framework
Each dimension is made up of specific criteria used to determine the mission-oriented scoring makeup of each pool of loans.
* Loan-level mission scores may be used solely to facilitate securitization of the applicable mortgages into Fannie Mae Single-Family Social MBS.
Understanding the Single-Family Mission Index
To show how the Mission Index functions, let's first generate the Mission Criteria Share (MCS) for a hypothetical residential MBS pool composed of 10 loans.
To begin, we'll evaluate the loans against our criteria.
Scoring Loan Pools for Mission Criteria
Each loan in a pool is scored against the mission criteria and receives a loan-level score that reflects the number of criteria satisfied.
In this example, 8 of the 10 loans meet at least one criteria.
Generating the Mission Criteria Share
This pool would have a Mission Criteria Share (MCS) of 80%, which represents the share of loans that meet any 1 of the 10 mission criteria.
Next, we’ll calculate a Mission Density Score.
Assessing Mission Density
The Mission Density Score (MDS) is generated by evaluating each loan in a pool against three dimensions: income, borrower, and property. A loan receives a score of 1 for each dimension it satisfies, for a maximum loan-level score of 3.
The average of these scores within a given pool is the MDS.*
Calculating the Mission Density Score
This pool would have a score of 2.1, representing a higher density of mission-oriented loans.
The MDS ranges from 0 to 2.5. Higher scores imply greater potential for mission impact.
STEP 6
Elevating Mission-Oriented Lending
By utilizing the Mission Index, investors and lenders can promote greater access to credit and affordable housing opportunities.
Swipe to see how the Mission Index works.
Click to see how the Mission Index works.
Measuring and Committing for Impact
New Mission Score 2 and Mission Score 3 product grids are now available for committing in Pricing & Execution - Whole Loan® (PE - Whole Loan®) and MarketPoint®, unlocking new opportunities for lenders to support affordable housing and improve access to credit.
Resources are available to help score pipelines and capture any market-based incentives for auctioning pools and/or originating loans with high Mission Scores.*
Learn more about each application
*Available to approved Fannie Mae Seller/Servicers and technology service providers; Application-specific user credentials may be required.
** Loan-level mission scores may be used solely to facilitate securitization of the applicable mortgages into Fannie Mae Single-Family Social MBS.
Unlock the Door to
Mission-Focused Lending
Looking to support borrowers and communities represented by the Mission Index?
Get started with Fannie Mae’s mortgage product offerings.
HomeReady®
Lenders can confidently serve creditworthy low-income and first-time homebuyers with a HomeReady mortgage, which offers a low down payment requirement (as low as 3%) and flexible funding.
Learn more about HomeReady
MH Advantage®
For borrowers considering manufactured housing options, lenders can offer MH Advantage, which provides affordable financing for specially designated manufactured homes that feature site-built characteristics.
Learn more about MH Advantage
FAQs
The Mission Index is Fannie Mae’s enhanced disclosure that provides insights into mission-oriented lending activities underlying our single-family mortgage-backed securities (MBS). It scores each Single-Family MBS the Enterprises issue on ten criteria, focusing on income, borrower, and property attributes that align to many of our statutory affordable housing responsibilities or other important mission goals. The Mission Index serves as the foundation for Enterprise-aligned Single-Family Social Bonds. These bonds will offer investors the ability to invest in single-family MBS featuring high concentrations of loans consistent with our mission and Duty to Serve goals. In turn, investor demand for these MBS may result in lenders focusing more on lending to those same populations.
The Mission Criteria Share (MCS) and Mission Density Score (MDS) work together to determine the final Mission Score. The scoring framework is made up of 10 criteria and overarching 3 dimensions that determine the mission-oriented scoring makeup of each pool of loans. Each loan in a pool is scored against the mission criteria and receives a loan-level score that reflects the number of criteria satisfied. The MDS is generated is generated by evaluating each loan in a pool against three dimensions: income, borrower, and property. A loan receives a score of 1 for each dimension it satisfies for a maximum loan-level score of 3.
We encourage lenders to continue to serve the borrowers and communities for which the Mission Index and Social Bond program are intended to support. Lenders delivering loans to Fannie Mae may assess and identify whole loans with high Mission Scores and MBS pools that offer a high concentration of mission-oriented issuances to qualify for benefits such as pay-ups.
Every loan acquired by Fannie Mae, whether through the Whole Loan Conduit or as part of a pool, is reviewed to determine if it meets one or more of the ten mission criteria and to calculate a Loan-level Score that reflects the number of mission criteria satisfied. The corresponding pools are assigned a Mission Criteria Share (MCS) value which represents the percentage of loans within the pool that meet at least one of the ten mission criteria. The pool is also assigned a Mission Density Score (MDS) which represents the average of the Loan-level Scores for the pool.
No, the criteria are established as part of the Mission Index framework. Although the adaptable design allows the criteria to be adjusted, added, or removed over time as conditions change, we will strive to adjust the Index no more frequently than every 24 months. Advance notice will be provided ahead of any planned updates.
There will be no impact to ULDD. Loan Delivery has been updated to reflect the new Mission Criteria Share and Mission Density Score.
Yes, all lenders who deliver loans to Fannie Mae, whether through the Whole Loan Conduit or as part of a pool, will have their loans/pools scored by the Mission Index.
Yes, please view the available tools and resources to score your pipelines here.
Second Homes receive a score of 0 across all criteria (and by extension, 0 for the aggregate loan-level Mission Score). They are NOT counted when determining an individual pool’s eligibility to receive MDS and MCS disclosures (pools with 9 or fewer loans receive masked scores of 7s). Seasoned loans (aged more than 12 months at acquisition) receive a score of 0 across all criteria and ARE counted when determining MDS and MCS disclosure eligibility (only Second Homes are excluded from the loan count; Seasoned loans are INCLUDED).
Yes, Fannie Mae and Freddie Mac worked closely, and in alignment with FHFA, to evolve the Mission Index based on market feedback. The Enterprises are aligned in the Mission Index disclosures and Single-Family Social Bond Frameworks.
Contact your Fannie Mae account representative.
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