Project Details
Project
Fannie Mae Social Bond Framework Second-Party Opinion (2024)
Client
Fannie Mae
Project Type
Social Bond/Loan
Industry Group
Other
Use of Proceeds
Socio-economic advancement; Affordable housing;
Location
U.S.
Evaluation Date
Jan 2024
Evaluation Summary
Sustainalytics is of the opinion that the Fannie Mae Social Bond Framework is credible and impactful and aligns with the Social Bond Principles 2023. This assessment is based on the following:
USE OF PROCEEDS
The eligible categories for the use of proceeds –Socioeconomic Advancement and Empowerment, and Affordable Housing – are aligned with those recognized by the Social Bond Principles. Sustainalytics considers that investments in the eligible categories will lead to positive social impacts and advance the UN Sustainable Development Goals, specifically SDGs 10 and 11.
PROJECT EVALUATION AND SELECTION
Fannie Mae will select the eligible mortgages aligned with its Mission Index and multifamily affordable housing criteria, in accordance with its existing mortgage purchase processes, and compliance with the eligibility criteria defined in the Framework. Fannie Mae has internal processes to address environmental and social risks commonly associated with eligible mortgages. Sustainalytics considers the project selection process to be in line with market practice.
MANAGEMENT OF PROCEEDS
The social mortgage-backed security (Social MBS) issuances will securitize mortgages that align with the criteria defined in the Framework, effectively achieving full allocation to its Social MBS at the time of issuance. Sustainalytics considers this process to be in line with market practice.
REPORTING
Fannie Mae discloses details of the underlying mortgages at the time of issuance of each Social MBS. Impact reporting will be published annually on Fannie Mae’s website and include a summary of the eligible mortgages securitized into the Single-Family Social MBS and associated impact metrics. Impact reporting for Multifamily Social MBS will be provided at the summary level, and at the bond-level where feasible, on its website. Sustainalytics views Fannie Mae’s reporting commitment as aligned with market practice.