A year after issuing its first Single-Family Green Mortgage Backed Security on Earth Day 2020, Fannie Mae has now completed 25 transactions for the program, totaling $167 million in bonds backed by mortgages on newly constructed, energy-efficient homes.
During a panel discussion at MBA’s Spring conference this week, experts noted that ESG programs, which consider things like resiliency, efficiency, climate risks, diversity, equity, inclusion and transparency, were just gaining a foothold in the U.S.
Transparency is one of the most difficult aspects of ESG, the panelists said, which is why Fannie Mae chose to focus its single-family green program on loans that meet the well-known ENERGY STAR standards.
Johnson said that investors are drawn to the program because of its third-party validation.
“This Second Opinion is important because it is an independent, research-based evaluation that determines the environmental value of green bonds and offers investors insight into the environmental quality of green bonds.
Department of Energy awarded Fannie Mae the 2021 ENERGY STAR Partner of the Year – Sustained Excellence Award, the first time this recognition included its Single-Family business.