Fannie Mae launched new social disclosures, the Social Criteria Share (SCS) and the Social Density Score (SDS), for its Single-Family mortgage-backed securities (MBS). The new disclosures are designed to respond to investor feedback and aim to provide single-family MBS investors with insights into socially oriented lending activities while helping to preserve the confidentiality of mortgage consumers’ personal information.
With today’s publication, Fannie Mae is providing the market with the SCS and the SDS, assigned at issuance, for active and inactive MBS pools issued between January 2010 and October 2022. Fannie Mae intends to begin publishing these attributes for new Single-Family MBS issuances on December 2, 2022.
To further assist market participants in their historical analysis, Fannie Mae is also providing a chartbook containing common visualizations of prepayment performance.
“We’re excited to release the new social disclosures after receiving positive feedback on the proposal over the last several months,” said Devang Doshi, Senior Vice President of Single-Family Capital Markets at Fannie Mae. “This is a significant step forward in terms of providing insights for market participants while working to protect borrower privacy, and we remain committed to continued engagement with the investor community for further developments in socially conscious investments.”
While these pool-level disclosures may support investors in determining which pools may meet their socially minded investment criteria, we are not labeling any pools as Single-Family Social Bonds. Fannie Mae will consider feedback from investors, second-party opinion providers, and other market participants to determine how to approach potential labeled issuance.
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