Environmental, 

Social, and Governance

 Report2021
ESG REPORT / TABLE OF CONTENTS

Published December 13, 2022

Table of Contents

Introduction 2

Letter From the President 2

At a Glance 3

About Fannie Mae 5

About This Report 7

Our Approach to ESG 8

Social 9

Housing Affordability 9

Housing Stability 14

Racial Equity in Housing Finance 17

Diversifying the Industry 21

Employees 22

Human Capital 22

Environment 26

Climate Risk & Resilience 26

Sustainable Operations 30

Green Homes 31

Governance 35

Corporate Governance and ESG Oversight 35

Risk Management 37

Business Ethics 39

Data Privacy & Security 40

Regulatory Engagement 42

Appendix 43

Additional Resources 43

Data Tables 44

Assurance Report 62

SASB Index 63

TCFD Index 69

Disclaimers 70

© 2022 Fannie Mae 2021 ESG Report | 1
Letter From 

the President 

Welcome to Fannie Mae’s first annual report on our environmental, 

social, and governance (ESG) strategy and progress. 

Fannie Mae was founded in 1938 with the public purpose of 

encouraging homeownership. Over the years, we have continuously 

sought to expand housing opportunities. Today, our mission is 

to advance equitable and sustainable access to homeownership 

and quality affordable rental housing across America.

Our housing mission gives us a unique social responsibility. 

This report describes a wide range of activities we are pursuing 

to provide leadership in creating housing opportunities that 

are affordable and stable. It also describes newer activities 

specifically focused on making housing more equitable. As 

our country addresses historic, structural, and ongoing racial 

inequities, Fannie Mae is working to knock down barriers 

to housing for Black and other underserved renters and 

homeowners. This report also describes what we’re doing 

to strengthen diversity and inclusion in our own workforce, 

in our business partnerships, and across the housing industry. 

Strong governance underpins everything we do. It is what makes 

it possible for us to work with our lending and servicing partners 

to serve renters and homeowners and provide confidence to 

investors and other stakeholders. As one of the largest guarantors 

of mortgage risk in the United States, strong risk management is 

not just important to Fannie Mae’s business — it is Fannie Mae’s 

business. More broadly, our management team works closely 

with our Board of Directors and the Federal Housing Finance 

Agency to ensure strong oversight of our housing mission, safety 

and soundness, strategy, and business ethics. 

Introduction

SECTION 1

In this report, you can find how our commitment to the 

environment informs our leadership in green financing for 

multifamily and single-family housing. We are also striving to 

prepare for and respond to climate change. We monitor and 

seek to mitigate climate risk, and we are building resiliency and 

sustainability into our business operations. This year, for the 

first time, we are proud to share climate disclosures informed 

by the Financial Stability Board’s Task Force on Climate-related 

Financial Disclosures. 

This report is more than a static view of our ESG approach and 

results to date. Rather, it represents a springboard to the future 

and progress we still seek to make. We are proud of this report, 

the work it describes, and the people and partners who are 

advancing our shared goals. Most of all, we are inspired by the 

opportunity to serve America’s renters and homeowners.

© 2022 Fannie Mae 2021 ESG Report | 2

TABLE OF CONTENTS INTRODUCTION / LETTER FROM THE PRESIDENT 
At a Glance

24%

Surpassed

$100B

in Green Bond issuances since 2012

backed by loans that were estimated to achieve:

Supporting the transition 

to greener buildings

Our financing can be used to improve the sustainability of 

single-family and multifamily properties by increasing energy 

and water efficiency and reducing greenhouse gas emissions. 

of U.S. single-family

mortgage debt outstanding

of our

workforce

of our

workforce

28%

1.5M

single-family

home purchases

& 3.3M

single-family refinancings

of which over a third

were to low-to-moderateincome households

622K

multifamily units

of which a significant 

majority reported rents 

affordable for low-tomoderate-income households1

21%

of U.S. multifamily

mortgage debt outstanding

of officer-level 

employees4

of officer-level 

employees4

Fannie Mae at a glance

As of Dec. 31, 2021, loans Fannie Mae owned 

or guaranteed accounted for approximately: 

In 2021, Fannie Mae acquired mortgages supporting:

1 Based on rents reported at loan origination. Rents may change following loan origination. 

2 Sum of single-year projected savings for each loan. Savings are likely to continue beyond one year. MtCO2

e is metric tons of carbon dioxide equivalent.

3 Multifamily Green Bonds only.

4 Officers are employees with job titles that include Fellow, Vice President, Senior Vice President, Executive Vice President, President, and CEO.

500+

participants

in 2021 in our Future Housing Leaders® (FHL)

program, which is designed to help create a pipeline 

of diverse talent for the housing industry

Fostering engagement, 

advancement, and inclusivity

We value a diverse workforce and an inclusive workplace, 

and we leverage Fannie Mae’s position in the marketplace to 

promote diversity and inclusion in the housing finance industry.

Women

as of December 2021

10.9BkBtu

of projected source

energy savings2

9.0B gallons

of projected water savings2,3

717K mtCO2e

of projected greenhouse 

gas emissions prevented2

Racial or

ethnic minorities

as of December 2021

58% 44% 35%

© 2022 Fannie Mae 2021 ESG Report | 3

TABLE OF CONTENTS INTRODUCTION / AT A GLANCE
Affordable housing initiatives Enabling access to mortgages

Helping people stay 

in their homes 

188K+

HomeReady® loans

acquired in 2021, a lending

product designed to help serve 

creditworthy low-income borrowers

$9.6B

in financing

provided in 2021 for Multifamily

Affordable Housing properties 

encumbered by a regulatory 

restriction, land use restriction, 

extended use agreement, or similar 

restriction that limits rents or 

imposes income limits on renters

$2.0B

invested

in Low-Income Housing Tax

Credit (LIHTC) equity since 2018, 

supporting the creation or 

preservation of over 50,000 

rental units

700K+ 

first-time homebuyer mortgages

acquired, representing nearly

half of Fannie Mae home purchase 

mortgage acquisitions in 2021

23K+ 

sessions

of housing counseling were

provided to borrowers and renters at 

no cost to them via partners in 2021

of the over 1.4 million loans that 

entered forbearance in 2020, 2021, and 

2022 had resolved their forbearance 

by September 30, 2022, through 

a workout option, reinstatement, 

or by paying off the loan

2.3M 

unique visitors

engaged with resources for relief 

and assistance in 2021 through 

our Here to Help and Know Your 

OptionsTM websites

A groundbreaking change:

Created the ability to consider

timely rent payments in mortgage 

underwriting. This helps renters

with a history of on-time payments 

but limited credit history receive 

approval recommendations through 

our automated underwriting system

94%

Helping homeowners, homebuyers, and renters

We help make access to housing in the United States more attainable, affordable,

and stable for low- and moderate-income borrowers and renters.

© 2022 Fannie Mae 2021 ESG Report | 4

TABLE OF CONTENTS INTRODUCTION / AT A GLANCE
About Fannie Mae

Who we are

The Federal National Mortgage Association, better known as 

Fannie Mae, is a purpose-driven company by charter and by 

choice. Our charter is an act of Congress and establishes our 

purposes: to provide liquidity and stability to the residential 

mortgage market and to promote access to mortgage credit 

(including activities relating to mortgages on housing for 

low- and moderate-income families involving a reasonable 

economic return that may be less than the return earned on 

other activities). Congress also declared that our operations 

should be financed by private capital “to the maximum extent 

feasible.” With these Congressional mandates in mind, we 

have, principally using private capital, continuously sought to 

provide liquidity in the secondary market and expand housing 

opportunities for all people throughout the U.S.

We do not originate loans or lend money directly to borrowers 

in the primary mortgage market. Rather, we work primarily 

with lenders who originate loans to borrowers. We securitize 

those loans into Fannie Mae mortgage-backed securities 

(MBS) that we guarantee. Our revenues are primarily driven 

by guaranty fees we receive for assuming the credit risk on 

loans underlying the MBS we issue. As of December 31, 2021, 

we owned or guaranteed mortgage assets representing an 

estimated 28% of single-family mortgage debt outstanding 

and 21% of multifamily mortgage debt outstanding in the U.S.5

The work we do helps to make the popular 30-year fixed-rate 

mortgage possible, enabling predictable mortgage payments 

over the life of the loan and giving homeowners stability and 

peace of mind. 

5 Based on internal estimates using data from the Federal Reserve Board of Governors' “Financial Accounts of the United States” (Z.1) release, Q4 2021.

© 2022 Fannie Mae 2021 ESG Report | 5

TABLE OF CONTENTS INTRODUCTION / ABOUT FANNIE MAE
Our business segments

We have two reportable business segments: Single-Family 

and Multifamily. 

Single-Family

Our Single-Family Business acquires mortgage loans secured 

by properties containing one to four residential dwelling units, 

delivered by over a thousand lenders across the United States. 

Fannie Mae’s position in the housing finance value chain means 

that we help set standards that apply nationally to conventional 

mortgage financing. Those standards include lender requirements 

in order to conduct business with us, credit and eligibility criteria 

for loans that we purchase and the underlying properties, servicer 

requirements for ongoing administration of the loans, and 

standards for borrower assistance and loss mitigation. 

In 2021, the low interest-rate environment drove strong demand 

for both purchase and refinance mortgages. Our Single-Family 

Business provided $1.35 trillion in liquidity to the mortgage 

market in 2021, enabling the financing of 1.5 million home 

purchases and 3.3 million refinancings. Over a third of the 

mortgages we acquired in 2021 were to low-to-moderate-income 

borrowers.6 Nearly half of the home purchase mortgages we 

acquired in 2021 were to first-time homebuyers.

Multifamily

Our Multifamily Business provides mortgage market liquidity 

primarily for properties with five or more residential units, 

which may be apartment communities, cooperative properties, 

senior housing, dedicated student housing, or manufactured 

housing (MH) communities. Multifamily housing is an essential 

part of the U.S. housing supply: there are 44 million renter 

households in the U.S., and 45% of those households live in 

multifamily units.7 Fundamental to our Multifamily Business 

is the concept of risk-sharing with lenders, who typically retain 

one-third of the risk of losses on loans they sell to Fannie Mae.

Overall, our Multifamily Business provided over $69 billion 

in multifamily mortgage market liquidity in 2021. A significant 

majority of units financed were affordable to low-to-moderateincome households.8

6 Low-income borrowers are those with income of 80% of area median income (AMI) or below; low-to-moderate-income borrowers are those with income of 100% of AMI 

or below. Percentages are based on number of loans and not unpaid principal balance.

7 U.S. Census Bureau, 2019 American Community Survey 1-Year Estimates. For the year 2020, due to the impact of the COVID-19 pandemic on data collection, the Census 

Bureau released experimental estimates and products from the 1-year American Community Survey data instead of the traditional 1-year estimates. At the time this report 

was prepared, that was the latest data release. To avoid discontinuity, we have used 2019 1-year American Community Survey data throughout this report. 

8 Based on rents reported at origination. Rents may change following loan origination. For additional information on affordable housing acquisitions, see Table 3. Multifamily 

Housing Mortgage Acquisitions by Year, by Select Characteristics in the Data Tables section of the Appendix.

Multifamily loans

Single-family 

refinance loans

Single-family home 

purchase loans

$596.0

$312.7

$283.3

$1,358.9

$76.0

$411.1

$947.8

$1,354.8

$69.5

$451.4

2019 2020 2021

$903.4

$70.2

MORTGAGE LOANS ACQUIRED DURING THE YEAR BY UNPAID PRINCIPAL BALANCE AT ACQUISITION

(dollars in billions)

© 2022 Fannie Mae 2021 ESG Report | 6

TABLE OF CONTENTS INTRODUCTION / ABOUT FANNIE MAE
About This Report

This is Fannie Mae’s first enterprise-wide Environmental, Social, 

and Governance (ESG) Report. It seeks to provide transparent 

ESG-related information on Fannie Mae’s business and 

operations. Some of the information included in this report 

has been previously disclosed in other voluntary and mandated 

reporting, including on our website and in our annual report on 

Form 10-K filed with the Securities and Exchange Commission 

(SEC). (See Additional Resources in the Appendix.)

Scope of the report

The information included in this report is as of and for the 

year ended December 31, 2021, unless otherwise noted. This 

report focuses on our key ESG priorities identified through 

internal and external stakeholder engagement and additional 

topics relevant to investors, ESG reporting standards, and 

ESG ratings organizations.

Alignment to independent 

reporting standards

The report includes specified information prepared in 

accordance with the SASB Standards for Mortgage Finance 

(our primary SASB industry), Commercial Banks, and 

Investment Banking and Brokerage as set forth in Note 1: 

Basis of Presentation in the SASB Index of this report.9

In addition, we refer to the Task Force on Climate-related 

Financial Disclosures (TCFD) framework to inform this report’s 

preparation. Please see the SASB and TCFD indexes in the 

Appendix of this report for more information. 

Limited assurance

Fannie Mae engaged Deloitte & Touche LLP (“Deloitte”) to 

perform a review engagement on management’s assertion 

related to the specified information referenced in the SASB Index 

as of and for the years ended December 31, 2021, 2020, and 2019. 

Deloitte’s report can be found on p. 62 of this ESG Report.

9 We have modified certain metrics to reflect the ESG risks and opportunities inherent in Fannie Mae’s position in the secondary mortgage market. The SASB Index in the Appendix 

of this report explains these modifications as well as changes from our 2020 SASB Report. 

Our approaches to the disclosures included in this report 

may be different from those included in mandatory 

regulatory reporting, including under SEC regulations, 

and we can provide no representation or assurance that 

our internal approach is consistent with other investment 

criteria, taxonomies, standards, or guidelines. The goals 

presented in this report are aspirational; as such, we make 

no guaranty or promise that these goals will be met. While 

this report describes events, including potential future 

events, and priorities that may be significant from an ESG 

perspective, any significance does not necessarily equate 

to the level of materiality of disclosures required under 

U.S. federal securities laws.

© 2022 Fannie Mae 2021 ESG Report | 7

TABLE OF CONTENTS INTRODUCTION / ABOUT THIS REPORT
Our Approach to ESG

Our ESG strategy builds upon our mission to facilitate equitable 

and sustainable access to homeownership and quality 

affordable rental housing across America. This includes working 

to address the underlying historical causes of the barriers 

to stable, affordable housing for underserved populations, 

and helping to mitigate risks to the housing system due to 

environmental challenges such as climate change. 

Our ESG priorities

Fannie Mae has an ongoing process for monitoring new and 

evolving ESG trends and relevant topics. Since 2018, we have 

conducted periodic assessments to deepen our understanding of 

the overall landscape, prioritize the issues that are most relevant 

to our business and stakeholders from an ESG perspective, and 

adapt our ESG strategy and disclosures accordingly. 

In 2021, we completed an updated assessment of the ESG topics 

most relevant to Fannie Mae. Topics were evaluated based 

on their relevance to our business from an ESG perspective, 

their impact on society, and our capacity to impact the issue at 

scale, among other factors. The topics below emerged from the 

assessment as priorities for Fannie Mae's ESG strategy.

Read more about Fannie Mae’s ESG priorities on our website.

Fannie Mae’s priority ESG topics (in alphabetical order): 

• Business ethics

• Climate resilience

• Climate risk

• Community engagement

• Data privacy & security

• Diversity & inclusion

• ESG integration

• Green homes

• Housing affordability

• Housing stability

• Human capital management

• Racial equity in housing finance

• Regulatory engagement

• Risk management

© 2022 Fannie Mae 2021 ESG Report | 8

TABLE OF CONTENTS INTRODUCTION / OUR APPROACH TO ESG
Understanding affordability 

We use the term “affordable” in multiple contexts in 

this report and when gauging the extent to which our 

financing is supporting housing that is affordable for 

low- to-moderate-income homeowners and renters. 

When addressing the needs of homeowners, we use 

the mortgage borrower’s household income as an 

indicator of affordability. For renters, we consider either 

rental cost or rent restrictions reported at mortgage 

origination. To account for variations in regional costs 

of living and incomes, we standardize how we talk about 

household income by categorizing incomes relative to 

area median income (AMI).

Some of the multifamily properties we finance have 

restrictions that limit the rents that can be charged to 

renters and/or impose income limits on the individuals 

or households who reside in the units.10 Affordable 

housing is not limited to rent- or income-restricted units 

or properties; properties that are within budget of lowor moderate-income residents even without existing 

rent or income limits or subsidy-related restrictions in 

place are referred to as “naturally-occurring” affordable, 

“unrestricted affordable,” or “market-rate affordable.” 

Properties without rent or income restrictions that 

are affordable at the prevailing market rate are a vital 

component of the overall supply of affordable housing.11

10 The definitions of affordability for these units are governed by individual 

programs and regulations, such as the Low-Income Housing Tax Credit 

program, the U.S. Department of Housing and Urban Development 

Section 8 program, and state and local housing incentives. 

11 We evaluate affordability of reported rents according to FHFA guidance 

(12 CFR part 1282).

Social

SECTION 2

Housing Affordability

Fannie Mae supports the housing market by purchasing and 

guaranteeing mortgage loans made by lenders and issuing MBS 

backed by those mortgage loans that attract global investors. 

These activities help to enable affordable housing for individuals 

and communities. True to our public mission, we continue to 

innovate ways to create and preserve affordable housing and 

promote a stronger and more efficient housing finance system.

To support affordable housing, Fannie Mae works to understand 

and address the barriers renters and homeowners face. We offer 

programs and tools designed to address these barriers and help 

people secure affordable and stable housing. 

Single-family housing affordability

Even before a rising interest rate environment further diminished 

affordability across the U.S. in 2022, homeownership has been 

out of reach for many people for a variety of reasons. Some 

common contributing factors include lack of savings to cover 

down payments and closing costs, limited traditional credit 

history, less familiarity with the process of buying a home, and 

competition for a limited supply of quality affordable housing. 

With these challenges in mind, we have developed products and 

programs designed to assist first-time homebuyers and very-lowto-moderate-income borrowers. Fannie Mae helps by supporting 

options for lower down payments and lower-priced mortgages, 

providing free homebuyer education, and pioneering the use of 

positive rent payment history in the underwriting assessment to 

help borrowers who have limited credit histories.

© 2022 Fannie Mae 2021 ESG Report | 9

TABLE OF CONTENTS SOCIAL / HOUSING AFFORDABILITY 
Increasing access to low down payment financing

Securing financing is often a major barrier for low-income and 

first-time homebuyers. Loans with as little as 3% down are 

eligible under Fannie Mae’s guidelines. HomeReady® is an 

affordable lending product designed to help our lender partners 

serve creditworthy low-income borrowers. Benefits include the 

flexibility of a low down payment, decreased mortgage insurance 

coverage costs, and lower costs of borrowing enabled by Fannie 

Mae limiting or eliminating risk-based pricing fees known as 

loan-level price adjustments (LLPAs) on HomeReady loans. With 

HomeReady, borrowers complete an educational course to 

prepare them for the next steps toward homeownership. This 

includes learning how to save and prepare for a home purchase, 

work with lenders and real estate professionals, and understand 

the mortgage process.12 (For more information on homebuyer 

education, see the Education and counseling section of the 

Housing Stability chapter.)

Addressing credit history barriers

To support prospective first-time homebuyers with limited 

credit history, starting in 2021, Fannie Mae began enabling 

lenders to incorporate a borrower’s positive rent payment 

history in the mortgage credit evaluation process through 

our proprietary automated underwriting system, Desktop 

Underwriter® (DU®). With permission from mortgage applicants, 

lenders can electronically pull and submit a report with 12 

months of bank account data to the underwriting platform. 

DU identifies rental payments appearing in the bank statement 

data. Only consistent rent payments are considered to improve 

eligibility. Any records of missed or inconsistent rent payments 

do not negatively affect the applicant’s ability to qualify for a 

loan eligible for sale to Fannie Mae.

In 2021, Fannie Mae also modified how DU evaluates the 

credit score on an application with multiple applicants. Loans 

underwritten through DU generally are subject to a minimum 

620 credit score requirement. We now generally use the 

average of all borrowers’ median credit scores, instead of 

the lowest median credit score, when assessing whether a 

loan with multiple applicants meets our minimum 620 credit 

score requirement.

Advancing manufactured housing 

MH serves as a significant source of affordable housing 

available to low- and moderate-income borrowers. 

Approximately 6.7 million U.S. households live in 

manufactured homes.13 The cost to purchase or rent a 

manufactured home tends to be lower than for site-built 

homes. However, certain factors can make purchasing 

a manufactured home more difficult, including limited 

production, a unique sales distribution model, difficulty 

obtaining financing, and local zoning restrictions.14

Fannie Mae markets MH loan products as a suite of options 

(MH Advantage®, standard MH, and single-wide MH). In 2021, 

12 The income limit for HomeReady eligibility is 80% of AMI. Both first-time and repeat homebuyers are eligible. Homebuyer education for HomeReady eligibility is required only if 

all occupying borrowers are first-time homebuyers. For additional information, see fanniemae.com/education. Eligibility requirements for HomeReady also apply to our related 

product HFA PreferredTM.

13 U.S. Census Bureau, 2019 American Community Survey 1-Year Estimates.

14 For more information on the manufactured housing market in the U.S., see Fannie Mae’s Duty to Serve Underserved Markets Plan, 2022–2024. 

2019 2020 2021

≤ 60%

> 60% to 70%

> 70% to 80%

> 80% to 90%

> 90% to 95%

> 95% to 100%

86

1,019

1,235 1,279

53

302

152

248

178

98

62

370

192

362

151

112

67

397

191

354

158

NUMBER OF OWNER-OCCUPIED HOME-PURCHASE 

MORTGAGES ACQUIRED, BY LTV AT ORIGINATION

(in thousands)

Population includes single-family loans on consolidated balance sheet

© 2022 Fannie Mae 2021 ESG Report | 10

TABLE OF CONTENTS SOCIAL / HOUSING AFFORDABILITY 
Fannie Mae began acquiring loans secured by single-wide 

manufactured homes. These are typically the most affordable 

manufactured homes, with an average sales price for a newly 

produced structure of $72,600 in 2021.15

In 2021, Fannie Mae provided $6.6 billion in liquidity to the 

single-family manufactured housing market.16

Preserving supply for homebuyers

Limited supply of affordable properties is another obstacle to 

owning a home. The cost of renovation and repair may limit 

the attractiveness of otherwise affordable properties. Fannie 

Mae’s HomeStyle® Renovation loans improve affordability 

Supporting high-needs rural areas 

Financing housing in rural areas presents some unique challenges. Though single-family homes tend to 

be less expensive in rural areas, household incomes are significantly lower than the national average, and 

unemployment rates have historically been higher, meaning many households are cost-burdened. The 

number of local financial institutions serving the needs of rural borrowers has also declined significantly 

over the past 30 years, resulting in more limited access to financial services for the estimated 23% of the 

U.S. population living in rural areas.17 Manufactured housing is also especially prevalent in high-needs 

rural regions for both owners and renters.

We are directing tax credit equity into these rural and high-needs rural markets. We also work with our 

lender network to bring in more debt capital and partner with industry leaders to improve the supply 

of affordable housing. In high-needs rural regions, we are pursuing strategic investments to expand the 

capacity of community development financial institutions. 

As part of Fannie Mae’s Duty to Serve initiatives, we channel liquidity to these markets by focusing 

outreach efforts and setting a target for acquiring rural loans from small financial institutions, as well 

as a target for purchasing loans in high-needs rural regions like rural Appalachia and the Lower 

Mississippi Delta.

17 This estimate uses FHFA’s Duty to Serve rural definition, Census 2010 tract land area information, and the American Community Survey 

2015 – 2019 five-year estimates of the population.

and flexibility by allowing financing based on the value of the 

home after improvements are made, enabling homeowners to 

access additional upfront funds to finance improvements as 

part of a home purchase or refinancing. 

Fannie Mae also invests in improvements to our real estate 

owned (REO) properties and provides exclusive access to newly 

listed homes to owner-occupant buyers or community-minded 

organizations. REO refers to residential properties owned by 

Fannie Mae as a result of servicer-completed foreclosures or 

deeds-in-lieu of foreclosure. Rather than sell our REO properties 

as-is, we conduct repairs on a majority of the properties 

we acquire — including installation of energy- and waterefficient products and remediation when required to address 

15 U.S. Census Bureau, Manufactured Housing Survey, June 2022.

16 This figure includes loans eligible under Fannie Mae’s Duty to Serve initiative and those financed outside of Duty to Serve eligibility.

TABLE OF CONTENTS SOCIAL / HOUSING AFFORDABILITY 

© 2022 Fannie Mae 2021 ESG Report | 11
environmental or health issues, such as lead-based paint and 

water-supply upgrades — which help make the homes more 

sustainable and support sales to owner-occupant buyers. 

Our First LookTM program provides homebuyers and nonprofit 

organizations access to properties on HomePath®, our online 

platform for REO sales, without competition from investors 

for the first 30 days a property is listed for sale. Community 

First by Fannie MaeTM provides exclusive purchase access 

to approved public entities and community-minded 

organizations that leverage REO properties to support their 

housing-related missions.

Multifamily housing affordability

Scarce supply of affordable rental units is one of the primary 

barriers to housing affordability for renters, resulting in 

competition for available units and renters stuck in highcost or low-quality housing. 

Fannie Mae is focused on supporting the preservation, 

rehabilitation, and creation of more affordable rental homes 

for renters. We develop products that incentivize preservation 

of affordable units for low- and very-low-income households. 

We also support the development and preservation of 

housing in the underserved manufactured housing and 

rural markets, and our products and programs reflect our 

commitment to these markets. 

Of the approximately 622,000 multifamily units we financed 

in 2021, a significant majority were affordable for households 

earning at or below 100% of the median income in their area.18

For more information on our multifamily affordable housing 

progress, see our 2021 Annual Housing Activities Report and 

Annual Mortgage Report.

18 Reflects new multifamily units financed by first liens; excludes second liens on multifamily units for which we had financed the first lien, as well as manufactured housing 

rentals. The number of units financed in 2021 has been updated in this report from the number reported in our 2021 Form 10-K to exclude previously included second liens 

and manufactured housing rentals. Affordability is based on rents reported at origination. Rents may change following loan origination. For additional information on affordable 

housing acquisitions, see Table 3. Multifamily Housing Mortgage Acquisitions by Year, by Select Characteristics in the Data Tables section of the Appendix.

Preserving affordable multifamily rental units

Fannie Mae takes an active role in preserving and improving 

affordable housing for low-income renters. We work to make 

it easier for lenders to finance the production and preservation 

of rental housing by providing standardized, consistent, and 

scalable multifamily financing products, as well as flexible, 

tailored products that accommodate innovative and 

affordability-generating deal financing structures.

Housing with rent- or income-based restrictions remains an 

essential source of affordable housing for many. Fannie Mae’s 

financing for Multifamily Affordable Housing, which includes 

loans on properties with a minimum level of rent- and incomerestricted units and properties receiving other federal and state 

subsidies, totaled $9.6 billion in 2021, up from $7.9 billion in 2020.

© 2022 Fannie Mae 2021 ESG Report | 12

TABLE OF CONTENTS SOCIAL / HOUSING AFFORDABILITY 
The Low-Income Housing Tax Credit (LIHTC) program is a 

federal program incentivizing equity investments in affordable 

rental housing for low- and very-low-income households. The 

program awards tax credits to affordable housing developers, 

who then exchange the tax credits for equity contributions 

from investors, including corporate investors like Fannie Mae, 

to create and preserve affordable housing. The LIHTC program 

provides a reliable source of capital for affordable rental 

housing and underserved markets and is currently the primary 

mechanism for subsidizing affordable housing production 

and rehabilitation in the U.S. 

From our reentry into LIHTC equity investment in 2018 through 

2021, Fannie Mae has provided approximately $2.0 billion in LIHTC 

equity investments, supporting the creation or preservation of 

over 50,000 rental units at nearly 700 properties in 47 states and 

the District of Columbia. We specifically target our investment 

activities toward underserved markets and underserved tenant 

populations. More than 250 of these properties were in rural 

communities, including approximately 60 properties in highneeds rural regions. Tenants served through our investments 

include Native American tribal members, people who have 

experienced homelessness, youth aging out of foster care, LGBTQ 

Social Bonds and our Sustainable Bond Framework 

While Fannie Mae has long issued MBS that support affordable housing in line with our mission, in 2021 we began 

offering Multifamily Social MBS to help identify MBS backed by loans that satisfy specific socially oriented lending 

criteria. These bonds are aligned with our Sustainable Bond Framework, which received a second-party opinion

from Sustainalytics. (See more in the Green Homes chapter.)

Loans eligible for Multifamily Social MBS designation include those financing restricted affordable housing, 

unrestricted affordable housing, manufactured housing communities, and Healthy Housing RewardsTM

properties. MBS issued in alignment with Fannie Mae’s Sustainable Bond Framework also align with the 

International Capital Market Association (ICMA) Social Bond Principles categories of Affordable Housing, Access 

to Essential Services, and Socioeconomic Advancement and Empowerment. In 2021, we issued $10.5 billion in 

Social Bonds, measured by unpaid principal balance at issuance; these bonds are backed by loans that finance 

restricted affordable housing and manufactured housing communities. See Table 4. Multifamily Social Bond 

Issuance in the Data Tables section of the Appendix.

seniors, and people who have experienced domestic violence. 

Properties targeting these tenants may include supportive 

services such as counseling, after-school programs, and job 

training in addition to providing high-quality affordable housing.

Fannie Mae also provides debt financing for properties whose 

affordability stems from others’ LIHTC equity investments. 

Over the past three years, we have increased our loan purchase 

targets on LIHTC properties and focused efforts on the innovative 

MBS as Tax-Exempt Bond Collateral (M.TEB) mortgage loan 

solution. This offering allows Fannie Mae-issued multifamily MBS 

to support new issuance or refunding of municipal tax-exempt 

bonds, which helps to subsidize LIHTC affordable properties. 

Our Sponsor-Initiated Affordability (SIA) program seeks to 

address the gap in affordable housing supply, offering a pricing 

incentive for multifamily borrowers to voluntarily set aside at 

least 20% of units for households with income less than 80% 

of AMI through the life of the Fannie Mae loan. With SIA, Fannie 

Mae provides toolkits and guidance for property owners, 

offering an entry point for those who are new to the domain of 

housing affordability and a loan-level compliance framework 

for borrowers. 

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TABLE OF CONTENTS SOCIAL / HOUSING AFFORDABILITY 
Housing Stability

Our funding helps preserve the 30-year, fixed-rate mortgage, 

an industry standard for many homebuyers. This popular 

mortgage loan helps homeowners by offering stable, 

predictable mortgage payments over the life of the loan. 

We create underwriting, eligibility, and risk management 

standards to help protect borrowers.

Fannie Mae also works to support housing stability by 

investing in homeownership and financial education as well 

as working to prevent displacement and insecurity — and 

market disruption — when disasters strike. 

Responsible underwriting

Fannie Mae’s Selling and Servicing Guides set out the current 

eligibility and ongoing administration requirements for 

loans we can acquire. We built and support the automated 

underwriting system, DU, that lenders can use to determine 

whether a specific loan is eligible for sale to Fannie Mae. 

DU performs a comprehensive evaluation of the primary 

and contributory risk factors of a mortgage. Using an 

automated underwriting system helps bring greater 

consistency for loans being sold to Fannie Mae, rather 

than having over a thousand lenders manually underwrite 

loans using the Guide standards.

Serving very-low-, low-, and moderate-income households 

and first-time homebuyers is a fundamental part of Fannie 

Mae’s mission, and we design our underwriting standards, 

business practices, and procedures to balance the company’s 

multiple objectives of serving consumers of modest means, 

meeting our liquidity mission, and appropriately addressing 

credit risk. We believe that Fannie Mae’s rigorous underwriting 

standards help ensure that borrowers are prepared to meet 

the obligations of homeownership.

Education and counseling 

SASB FN-CB-240a.4

Fannie Mae takes an expansive approach to education to support 

current and aspiring homeowners and renters in maintaining 

stable housing. Our vision is to deliver a continuum of educational 

and counseling resources, where multiple approaches at distinct 

points in an individual’s renting and homeownership journey can 

build upon each other for cumulative effect. Fannie Mae requires 

certain borrowers to complete homeownership education prior to 

loan closing.19 This includes learning how to save and prepare for 

a home purchase, work with lenders and real estate professionals, 

and understand the mortgage process. 

Fannie Mae also partners with organizations that provide 

fundamental financial capability education and resources 

delivered early in participants’ financial life cycles. We also 

Sustainable Communities 

Innovation Challenge 

We recognize that stable, affordable housing has benefits 

that extend to all aspects of life. Our Sustainable 

Communities Innovation Challenge forges partnerships 

in sectors adjacent to housing — such as employment, 

education, and health — to explore and launch innovative 

ways to support sustainable and affordable housing for 

households with low-to-moderate incomes. Through 

this initiative, Fannie Mae awarded over $7 million 

from 2018 through 2022 to support innovative projects 

with 13 organizations that are tackling the challenges 

of affordable housing from different angles. Awardees 

receive expert mentorship and virtual learning sessions 

to support implementation and ongoing project 

management, as well as technical assistance to increase 

capacity to scale their projects. 

19 For certain Fannie Mae loans, at least one borrower on a loan must complete homeownership education prior to loan closing: if all borrowers on the loan are relying solely 

on nontraditional credit to qualify, regardless of loan product or first-time homebuyer status with HomeReady and HFA Preferred purchase transactions when all occupying 

borrowers are first-time homebuyers; or for purchase transactions with loan-to-value (LTV), combined LTV, or home equity combined LTV ratios greater than 95% when all 

borrowers are first-time homebuyers. Qualified providers must be independent of the lender, with homeownership education content that is aligned with National Industry 

Standards or offered by a housing counseling agency approved by HUD. HomeView can be used to satisfy homeownership education requirements. 

© 2022 Fannie Mae 2021 ESG Report | 14

TABLE OF CONTENTS SOCIAL / HOUSING STABILITY 
provide on-demand educational resources for potential 

borrowers seeking to achieve homeownership and deliver 

just-in-time interactive learning for borrowers in the process of 

taking out a mortgage. And our post-purchase educational and 

counseling offerings can help borrowers remain confident and 

aware of their options in times of distress. 

In 2021, we launched the Your Own Story educational 

campaign with a dedicated website to provide homebuyers 

with accessible, interactive information on how to achieve 

sustainable homeownership. In 2022, we launched Fannie Mae 

HomeViewTM, a free online education course designed to help 

consumers navigate the mortgage and homebuying processes 

confidently and responsibly.

See Table 7. Education & Counseling in the Data Tables 

section of the Appendix.

SASB FN-CB-240a.4

Support in a crisis

Fannie Mae offers multiple channels to help borrowers and 

renters know their options and pursue a path that reduces 

disruption to their housing and finances when they experience 

a temporary inability to make mortgage or rent payments or 

find their lives upended by a natural disaster. 

For those affected by natural disasters, we developed the 

Fannie Mae Disaster Response NetworkTM (DRN), which offers 

comprehensive support to help people navigate the aftermath 

of disasters. In the difficult moments following a disaster, 

homeowners and renters can miss out on vital financial resources, 

become the targets of scams, and become overwhelmed 

navigating the process of rebuilding their homes and lives. The 

DRN responds to these moments of crisis by connecting those who 

faced disasters with a dedicated counselor to help them develop 

a needs assessment, create a personalized recovery plan, and 

request financial relief from the Federal Emergency Management 

Agency (FEMA), insurance providers, and other sources. Counselors 

continue to check in with clients for up to 18 months, serving as 

their dedicated partners in navigating their unique situations. 

Anyone who calls the DRN experiencing the impacts of a disaster 

or COVID-19 can receive support; the DRN facilitates services for 

residents whether Fannie Mae owns their mortgages or not. 

For borrowers struggling with mortgage payments, Fannie 

Mae offers free housing counseling through partnerships with 

nonprofit housing counseling organizations. In addition, we 

created KnowYourOptions.com, a consumer website that 

provides resources for consumers to understand and weigh 

their options for resolving loan delinquencies. 

Fannie Mae’s loss mitigation strategy sets standards for timely 

resolution when borrowers experience financial distress. Our 

policies require servicers to intervene early to address mortgage 

loan delinquency and provide alternatives to foreclosure. First 

and foremost, the servicer is required to engage with the borrower 

on options for resolving the delinquency. The servicer is required 

to determine whether a borrower qualifies for a home retention 

solution before considering foreclosure or foreclosure alternatives.

If no home retention solutions are viable, Fannie Mae works 

to avoid foreclosure. Pre-foreclosure sales (“short sales”) and 

deeds-in-lieu of foreclosure are available options to minimize 

disruption to homeowners’ lives and damage to their credit 

histories.20 To promote consistency across servicers and 

improved outcomes for borrowers, Fannie Mae offers Servicing 

Management Default UnderwriterTM (SMDUTM), an application 

that automates loss mitigation decisions. 

See Table 6. Single-Family Loan Modifications, Foreclosure 

Alternatives, and Foreclosures in the Data Tables section of 

the Appendix.

Protecting owners and renters of 

manufactured housing

Residents in MH communities often own their homes but rent 

the land (known as the pad or site) on which their homes sit. 

Tenant Site Lease Protections (TSLPs) contribute to more 

stable housing, whether MH community residents own or 

rent their dwelling. TSLPs address site lease terms, minimum 

grace periods for rent payments, unit sale and associated site 

lease assignment rights, advance notice of rent increases, 

and advance notice of a planned sale or closure of the MH 

community. For loans committed in and after 2022, we require 

that TSLPs be implemented on 100% of site leases — both 

owner-occupied and renter-occupied.

20 Fannie Mae Single-Family Servicing Guide, July 2021.

© 2022 Fannie Mae 2021 ESG Report | 15

TABLE OF CONTENTS SOCIAL / HOUSING STABILITY 
Support for homeowners, renters, and the market during COVID-19 

As the COVID-19 pandemic unfolded, Fannie Mae took action to help people maintain their housing, including 

through halting foreclosures, providing forbearance plans to homeowners struggling to make mortgage 

payments as a result of the pandemic, and prohibiting evictions for nonpayment of rent in multifamily 

properties that received loan forbearance. 

Our Single-Family Business introduced new and expanded home retention options for homeowners, including 

a new payment deferral option. We also introduced temporary policy flexibilities, including new servicing 

policies intended to prioritize home retention and the suspension of most foreclosure-related activities. 

During 2020, 2021, and 2022, we provided forbearance plans on more than 1.4 million single-family loans. As of 

September 30, 2022, approximately 94% of these loans had resolved their forbearance plan by receiving a loan 

workout option, by reinstatement, or by paying off the loan.21

We also added flexibilities in 2020 and in 2021 to the eligibility requirements for the Fannie Mae Flex 

Modification for single-family borrowers impacted by COVID-19. These flexibilities allowed more borrowers 

to access the program, through which loan servicers may offer eligible homeowners mortgage payment relief 

by extending their mortgage terms to 480 months, aiming for an appreciable principal and interest payment 

reduction, and assessing borrowers for the possibility of a lower interest rate. Further streamlining our 

approach to loan modifications, including through utilizing SMDU, Fannie Mae enabled servicers to respond 

efficiently and keep more borrowers in their homes.

During the pandemic, we also leveraged our position in the secondary market to support multifamily 

borrowers and help prevent renter evictions. Beginning in March 2020, we allowed multifamily lenders to grant 

forbearance to borrowers with Fannie Mae-financed multifamily properties if they experienced a financial 

hardship related to COVID-19. In exchange, the borrowers committed to provide specified renter protections, 

including rent repayment flexibility and suspended evictions for nonpayment of rent. When the Coronavirus 

Aid, Relief, and Economic Security (CARES) Act was enacted in March 2020, we updated our forbearance 

program with additional renter protections and notification requirements, such as requiring property 

managers to give renters at least a 30-day notice to vacate. 

In both our Multifamily and Single-Family Businesses, Fannie Mae’s educational and counseling programs 

helped keep the housing finance market stable by supporting people to take informed action despite 

uncertainty. In 2020 and 2021, Fannie Mae mortgage borrowers accessed over 2,400 homeownership and 

financial counseling sessions through the DRN, and renters in Fannie Mae-financed properties accessed 

over 21,000 counseling sessions. 

We also boosted awareness through our Here to Help direct-to-consumer media campaign, which equipped 

lenders, servicers, borrowers, renters, and property managers with the latest, most accurate information on 

policy updates and relief options. In 2021, we estimate Here to Help and KnowYourOptions.com information 

reached 2.3 million unique visitors.

21 For more details see Fannie Mae’s Financial Supplements available at https://www.fanniemae.com/about-us/investor-relations/quarterly-andannual-results.

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© 2022 Fannie Mae 2021 ESG Report | 16

SOCIAL / HOUSING STABILITY 
Racial Equity in 

Housing Finance

We believe that housing finance should be fair and equitable. 

Unfortunately, the U.S. housing finance system is marked 

by a history of racial discrimination and persistent racial 

disparities, particularly affecting Black consumers. 

Although the practice of racial redlining was outlawed over 50 

years ago, its effects endure. Even today, Black renters experience 

higher housing cost burdens, fees, and discrimination. The 

homeownership rate as of 2019 was approximately 42% for 

Black households, compared with 72% for non-Hispanic white 

households, barely changed from about 50 years ago.22

We estimate the variance in homeownership rates translates 

to a homeownership gap of about 4.7 million Black households.

Home equity is an important source of wealth, and this 

gap is a key driver of lower levels of net worth for Black 

households compared to non-Hispanic white households.23

This perpetuates a cycle — lower rates of homeownership 

lead to less accumulation of wealth, leading to lower levels of 

homeownership for the next generations and other disparate 

economic outcomes that accumulate over time. A recent study 

found that the median non-Hispanic white household held 

$188,200 in wealth, which was 7.8 times that of the median 

Black household.24

Consistent with the public purposes set forth in our charter, 

Fannie Mae is committed to doing what is in our power to 

build a more equitable housing finance system that yields 

better outcomes for future generations. Our approach is to 

first acknowledge the obstacles to affordable and stable 

housing that disproportionately affect people of historically 

underserved groups due to race or ethnicity, then identify 

appropriate interventions where Fannie Mae can leverage 

our products, policies, practices, and influence to support 

more equitable outcomes. 

22 U.S. Census Bureau, 2019 American Community Survey 1-Year Estimates.

23 Dettling, Lisa J., Joanne W. Hsu, Lindsay Jacobs, Kevin B. Moore, and Jeffrey P. Thompson with assistance from Elizabeth Llanes. 2017. “Recent Trends in Wealth-Holding by Race 

and Ethnicity: Evidence from the Survey of Consumer Finances.” 

24 Fannie Mae computations from 1992–2019 Survey of Consumer Finances data.

25 To read more on the Black Housing Journey, see Fannie Mae’s Equitable Housing Finance Plan.

We developed a framework we call the Consumer Housing 

Journey to capture insights from our research into the experience 

of renters, homebuyers, and homeowners.25 Our first use case for 

the Consumer Housing Journey was a data-driven exploration of 

the housing obstacles faced by Black consumers. This framework 

enables us to identify areas of opportunity for Fannie Mae to help 

more consumers become successful renters and homeowners.

To date, Fannie Mae’s work has focused on barriers related to 

knowledge of tenant rights, homebuying, and homeownership; 

lack of money for down payments and closing costs; lower 

credit scores and credit invisibility; and the supply of affordable 

rental units. 

© 2022 Fannie Mae 2021 ESG Report | 17

TABLE OF CONTENTS SOCIAL / RACIAL EQUITY IN HOUSING FINANCE
Equitable Housing Finance Plan

Looking ahead, Fannie Mae’s Equitable Housing Finance Plan outlines specific steps we are taking to further our 

commitment to advancing racial equity in housing finance. 

We are developing actions to help address the enduring effects of systemic discrimination against Black 

homeowners and renters. While our actions seek to address the obstacles faced by Black homeowners and 

renters as they seek affordable housing and access to housing finance, we expect they will benefit borrowers 

and renters in all population groups. Some programs are more narrowly targeted, such as working to increase 

the number of loans we purchase from lenders implementing Special Purpose Credit Programs (SPCPs) 

specifically intended to benefit borrowers in areas with a legacy of redlining. Through an SPCP, a financial 

institution may create and market loan products tailored to loan applicants from underserved groups who 

might not otherwise meet the institution’s typical standards for eligibility. The SPCP legal framework was 

created with the recognition that prohibiting discrimination was not sufficient to deal with past harms, but 

SPCPs have rarely been used in the mortgage market. As our Equitable Housing Finance Plan matures and 

evolves, we plan to expand our focus to the challenges of housing stability and access to the mortgage finance 

system faced by additional populations, including Latino people and fellow groups historically underserved 

due to their race, ethnicity, geographic location, or other attributes.

The initial iteration of our plan focuses on three areas where we believe we can make the most impact: 

• Housing Preparation: helping consumers prepare early for sustainable homeownership and access 

to quality rental housing through establishing strong financial and credit foundations. 

• Renting or Buying: removing unnecessary obstacles in shopping for, acquiring, renting, or financing 

the purchase of a home. 

• Moving In and Maintaining: improving the services that help sustain homeownership so that homeowners 

and renters can withstand disruptions or crises and remain stably housed.

Our Equitable Housing Finance Plan represents a deeper level of strategic coordination and program maturity, 

but it builds upon established programs Fannie Mae has fostered over decades.

Addressing gaps in knowledge and familiarity 

The homebuyer education and counseling programs 

described in our Housing Stability chapter help address 

gaps in access to information that may be more prevalent 

in communities with lower rates of homeownership or more 

challenges to tenants’ rights. We are investing in initiatives 

to target specific audiences with deeper engagements and 

actionable research, including through partnerships with 

other organizations. 

Addressing high cost burdens for renters

Historically underserved consumers, including Black and 

Latino people, are typically overrepresented in the renter 

population and have higher cost burdens. Fannie Mae is 

amplifying existing programs that we believe can increase 

the supply of and access to affordable rental units, including 

our LIHTC programs and SIA program, which we describe in 

the Housing Affordability chapter.

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© 2022 Fannie Mae 2021 ESG Report | 18

SOCIAL / RACIAL EQUITY IN HOUSING FINANCE
Addressing the high cost of down 

payments and closing costs

Among populations with lower homeownership rates and 

higher housing cost burdens, as is the case for many minority 

households, affording closing costs can be a major barrier to 

buying a home they could otherwise afford.26 Fannie Mae’s 

products and underwriting guidelines that enable lower down 

payment financing, as described in the Housing Affordability

chapter, can help these consumers start to build wealth 

through homeownership. 

Addressing lower credit scores 

and credit invisibility

As part of our mission to improve racial equity in housing 

finance, we are trying new ways to identify prospective 

borrowers who meet our credit standards and removing 

obstacles that disproportionately affect some groups of 

borrowers. One example of this approach is our expansion 

of underwriting capabilities beyond the limits of traditional 

credit reporting, including through our positive rental 

payment history initiative described in the Housing 

Affordability chapter.

We continue to explore ways to increase eligibility while 

preserving safety and soundness, such as implementing 

cash flow underwriting into DU for borrowers without a 

credit score.27

Fair lending and fair housing

SASB FN-MF-270b.3

Fannie Mae is committed to complying with both the letter and 

spirit of applicable laws and regulations related to fair housing 

and lending (Fair Lending Laws). The Fair Lending Laws include 

the Equal Credit Opportunity Act, the Fair Housing Act, and the 

Federal Housing Enterprises Financial Safety and Soundness Act 

of 1992, as amended (the “GSE Act”), and their implementing 

regulations, as well as similar state and local laws. These laws 

prohibit discrimination in housing and lending on the basis of 

certain characteristics.28

Fannie Mae operates in the secondary mortgage market and 

does not originate loans or lend money directly to borrowers 

or lenders. However, we require our lender partners, who lend 

money directly to borrowers, to comply with: 

• Our Selling Guides, which prescribe the requirements 

lenders must follow in order to sell loans to us.

• All federal, state, and local laws and regulations that apply 

to their origination practices, including the Fair Housing Act 

and the anti-discrimination provisions of the Equal Credit 

Opportunity Act.

• All other related state and federal regulations.

26 For more information on closing costs as an obstacle to homeownership, see Nuno Mota and Mark Palim, “Barriers to Entry: Closing Costs for First-Time and Low-Income 

Homebuyers,” Fannie Mae Working Paper, 2021.

27 2022–2024 Equitable Housing Finance Plan, p. 9.

28 Characteristics include, but are not limited to, race, color, national origin, sex, religion, marital status, age (provided the applicant has the capacity to contract), receipt of public 

assistance, familial status (children under the age of 18 living with parents or legal custodians, pregnant women, people securing custody of children under the age of 18), 

disability, sexual orientation/gender identity, or military status.

Appraisal bias 

Read about Fannie Mae’s commitment to minimize 

the harmful effects of racial bias in home appraisals.

© 2022 Fannie Mae 2021 ESG Report | 19

TABLE OF CONTENTS SOCIAL / RACIAL EQUITY IN HOUSING FINANCE
When delivering loans to Fannie Mae, lenders provide 

representations and warranties that assert their compliance 

with our Selling Guide and all applicable laws, including antidiscrimination laws and regulations. Thereafter, lenders must 

attest to us on an annual basis that they have policies and 

procedures in place, including regular training for employees 

and contractors, to facilitate and monitor compliance with these 

laws. Those who service loans for Fannie Mae are also required 

to abide by applicable laws and regulations dealing with loan 

servicing, as well as the provisions of our Servicing Guides. 

In addition to the lender and servicer requirements related to 

compliance with Fair Housing Laws, Fannie Mae has developed 

a Fair Lending Program designed to prevent, identify, measure, 

mitigate, and manage enterprise-wide fair lending risks. The 

program promotes fair and responsible housing practices on 

an enterprise-wide level covering both Fannie Mae’s SingleFamily and Multifamily Businesses, including underwriting 

standards, business practices, pricing policies, fee structures, 

and procedures. The Fair Lending Program is administered 

by Fannie Mae’s Fair Lending Group under the direction of the 

Fair Lending Officer. The Fair Lending Group reviews new and 

ongoing policies and initiatives, such as policies that impact 

the eligibility of loans sold to Fannie Mae, mortgage servicing 

policies, appraisal guidelines, and marketing materials, not 

only for compliance with the Fair Lending Laws but also with a 

view toward increasing equity in the home lending and rental 

markets. The group also conducts enterprise monitoring of fair 

lending risk as well as periodic testing and targeted reviews 

to evaluate fair lending compliance. The Fair Lending Group 

develops and delivers fair lending training to employees, taking 

into consideration their job responsibilities and Fannie Mae’s 

fair lending risks. Fair lending is also covered as part of our 

enterprise-wide training provided to all employees.

SASB FN-MF-270b.3

In February 2022, Fannie Mae settled a lawsuit brought by the 

National Fair Housing Alliance and other organizations alleging 

that Fannie Mae’s foreclosed properties were maintained and 

marketed in a discriminatory manner. Fannie Mae denied the 

plaintiffs’ allegations but agreed to pay $53 million to resolve 

the case, of which more than $35 million will be invested in Black 

and Latino communities to address homeownership, access to 

credit, property rehabilitation, and residential development.

© 2022 Fannie Mae 2021 ESG Report | 20

TABLE OF CONTENTS SOCIAL / RACIAL EQUITY IN HOUSING FINANCE
SPOTLIGHT

Diversifying the industry

We are committed to growing the representation of historically 

underrepresented groups within the housing industry 

broadly. According to a recent study commissioned by 

Fannie Mae, Black and Latino people are underrepresented 

in the housing industry.29

Below are some of the programs and partnerships we have 

established to advance our commitment to diversity and 

inclusion in the housing industry:

• ACCESS®: Established in 1992, Fannie Mae’s ACCESS program 

provides opportunities for diverse-owned broker dealer 

firms to distribute our fixed-income securities to the capital 

markets. In 2021, we included ACCESS dealers in our debt 

issuance transactions, credit risk transfer transactions, MBS 

trading transactions, and other capital markets activities.

• Appraiser Diversity Initiative: We created the Appraiser 

Diversity Initiative in 2018 to help promote diversity 

in the real estate appraisal field. We have partnered with 

29 Polygon Research, 2021. Data source: U.S. Census Bureau, Current Population Survey September 2021 microdata (not seasonally adjusted).

the National Urban League, the Appraisal Institute, and 

Freddie Mac on this initiative to attract new entrants to the 

residential appraisal field and foster increased diversity 

through outreach, scholarships, and mentoring. 

• Future Housing Leaders®: In 2018, we created Future 

Housing Leaders (FHL) to help create a pipeline of 

diverse talent for the housing industry. FHL connects 

college students from historically underrepresented 

groups to paid summer internships and early career 

opportunities in the housing industry.

We are also committed to ensuring the inclusion and utilization of 

diverse suppliers, vendors, and business partners in Fannie Mae’s 

procurement of goods and services, as outlined in our Equal 

Opportunity in Employment and Contracting Statement.

© 2022 Fannie Mae 2021 ESG Report | 21

TABLE OF CONTENTS SOCIAL / DIVERSIFYING THE INDUSTRY
Employees

SECTION 3

Human Capital

We believe a motivated and inclusive workforce generates more 

creative ideas, better business decisions, and better products 

that serve the mission embedded in our charter and the needs 

of our diverse country. To that end, Fannie Mae’s human capital 

efforts focus on three key areas: recruiting skilled talent, retaining 

and developing this talent, and fostering an inclusive workplace.

Attracting and rewarding 

a talented workforce

We believe many current and prospective employees are 

attracted by our mission and the compelling nature of our 

work. We seek to foster and develop talent and create an 

employee base that feels empowered to speak up, explore 

new opportunities, and embrace challenges. 

As of December 2021, people of color constituted 58% of our 

overall workforce and 24% of our officer-level employees, and 

women constituted 44% of our overall workforce and 35% of 

our officer-level employees.30 Over half of Fannie Mae’s Board 

members are women and/or racial or ethnic minorities. (See 

Tables 9 and 10 in the Data Tables section of the Appendix.)

Compensation and employee benefits

We offer a competitive total rewards package, which delivers 

a variety of cash and non-cash rewards designed to motivate 

employees and improve company performance. All regular 

Fannie Mae employees are eligible for benefits. 

We organize our rewards into three categories: mind, body, 

and finances.

Mind: Fannie Mae offers programs to support employees’ 

emotional well-being. Beyond the robust mental health 

benefits embedded in our medical insurance plans, our 

Employee Assistance Program provides confidential 

counseling, relationship support, and other resources.

Body: Our health insurance plans — medical, dental, and 

vision — offer a wide range of options that are competitive 

and cost effective. Eligibility for these, and certain other 

benefits, includes qualified domestic partners of any gender 

and their children. 

Finances: We also provide benefits that allow employees to 

invest in their financial and personal well-being.

To help advance employee retirement goals, eligible employees 

are automatically enrolled in a 401(k) plan, which matches 

contributions up to 6% of eligible earnings and provides flexible 

pre- and post-tax contribution choices and a broad spectrum 

of investment options. 

We also provide support for families, including adoption and 

surrogacy assistance of up to $10,000, paid parental leave for 

new parents, and a scholarship program for eligible employees’ 

dependents. To align with our mission and support employee 

homeownership, we provide eligible employees with a one-time 

grant of $10,000 to assist with the purchase of a primary residence.

30 Officers are employees with job titles that include Fellow, Vice President, Senior Vice President, Executive Vice President, President, and CEO.

© 2022 Fannie Mae 2021 ESG Report | 22

TABLE OF CONTENTS EMPLOYEES / HUMAN CAPITAL
Fannie Mae is committed to pay equity. We regularly review 

our pay practices and compensation structure for any potential 

pay disparities across gender or race. We analyze whether pay 

disparities may exist for comparable work (after controlling 

for objective factors that determine pay, such as job level and 

function, time in job, location, and performance) and how such 

disparities can be addressed. 

Engaging and developing our employees

We believe that investing in our employees is key to our 

success as a business and our value proposition as an 

employer. To this end, we offer a dedicated virtual training 

platform, development programs, and reimbursements 

for educational expenses. 

Fannie Mae University (FMU), our platform for employee 

development, is the access point for all learning. It supports 

employees in building knowledge and skills by offering 

thousands of web-based courses, videos, and other resources. 

FMU is organized by several education tracks, including the 

School of Housing, School of Leadership & Culture, School 

of Analytics, School of Digital, and School of Continuing 

and Professional Development. In 2021, FMU created a 

Race & Housing program to better educate employees on 

how policies over the past century have contributed to 

disparate housing market experiences and outcomes today. 

For employees who seek out higher education, our Assistance 

for Collegiate Education program may reimburse a maximum 

of $10,000 per calendar year of an eligible employee’s education 

expenses. Degree programs must relate to either Fannie Mae’s 

business and/or an employee’s current position. 

Performance reviews are a fundamental part of our 

employees’ development. Employees receive annual 

performance reviews, and the results are factored into 

compensation decisions. We also set the expectation for 

managers to have regular development discussions with 

their team members to ensure that growth is a continual 

priority, and we support our employees in continuing their 

career growth through internal mobility. 

We measure the success of our investments in our team 

through regular employee surveys. We believe a workforce that 

feels valued, engaged, respected, and part of a bigger purpose 

is more likely to stay and invest in our work and shared mission. 

We survey our workforce multiple times a year to monitor 

engagement and identify ways to improve our programs 

and work culture. In 2021, we conducted three employee 

engagement surveys. As of the final survey of 2021, more 

than eight in ten employee respondents would recommend 

Fannie Mae to friends and family as a great place to work.

© 2022 Fannie Mae 2021 ESG Report | 23

TABLE OF CONTENTS EMPLOYEES / HUMAN CAPITAL
Fostering an inclusive workplace

SASB FN-IB-330a.1

At the center of everything we do is our commitment to fostering 

an environment where all employees are treated with dignity and 

respect and are able to perform work in an inclusive environment, 

free from discrimination, harassment, and retaliation. We support 

these critical concepts by establishing and promoting policies 

that articulate the importance of, and value we place on, diversity 

and inclusion, by establishing a comprehensive diversity and 

inclusion strategy, by providing training to help our employees 

internalize the concepts in our policies, and by facilitating 

opportunities for engagement and partnership. 

Policies, statements, and other governing documents

Fannie Mae’s policies, statements, and other governing 

documents are accessible to employees on our intranet.

Our Equal Opportunity in Employment and Contracting

statement and our Employment Policy outline our prohibition 

against discrimination, harassment, and retaliation in the 

workplace and our commitment to the principles of equal 

opportunity for all employees. They articulate our commitment 

to providing reasonable accommodations to individuals 

with disabilities and to those who require workplace 

accommodations due to their sincerely held religious 

beliefs, observances, or practices. They prohibit workplace 

discrimination on any basis protected by federal, state, or local 

law, including race, color, religion, sex, national origin, disability 

or disability status, genetic information, age, sexual orientation, 

gender identity/gender expression, marital or parental 

status, family responsibilities, political affiliation, personal 

appearance, veteran status, or matriculation. They also prohibit 

discrimination on characteristics not covered under the law, 

such as bullying and systems of social stratification (including 

caste or class-based discrimination). These principles are also 

embedded in our Employee Code of Conduct (the “Employee 

Code”), which all employees must commit to upon hire and 

annually thereafter. (See our chapter on Business Ethics for 

additional details on the Employee Code of Conduct.)

Structures

Our D&I commitments are facilitated by the Office of 

Minority and Women Inclusion (OMWI) and supported 

by our Diversity Advisory Council (DAC) and our Employee 

Inclusive Culture Council (EICC). We also support robust 

Employee Resource Groups.

Our Office of Minority and Women Inclusion supports D&I 

efforts enterprise-wide. OMWI is committed to promoting 

workforce diversity and fostering inclusion at all levels, as 

well as providing opportunities for diverse suppliers and 

business partners to support our mission. OMWI is responsible 

for leading and overseeing our D&I strategy, including 

tracking performance metrics and driving engagement 

and collaboration. In partnership with others across the 

enterprise, OMWI is focused on continuously improving 

and maturing our D&I program.

Our annually updated Diversity and Inclusion Strategic Plan 

includes outlines of key actions to cultivate an inclusive 

environment in which all employees have the opportunity 

to realize their full potential and receive support for their 

professional development goals. Key actions focus on inclusive 

leadership principles, talent development, enterprise-wide 

accessibility, and a consistent communications strategy 

that reinforces the practices of driving inclusion to achieve 

innovative solutions. Examples of actions include developing 

and implementing tools and resources to mitigate potential 

biases in employment decisions and creating targeted 

development actions for identified talent through succession 

plans and talent discussions. 

Our Diversity Advisory Council is an advisory working group 

of officers whose mission is to aid in the successful delivery 

of the company’s D&I Strategic Plan at the divisional and 

enterprise levels through the identification of opportunities 

and corresponding actions. The DAC assists in monitoring and 

advising on the progress of the company’s D&I Strategic Plan 

and associated practices and initiatives, shares learnings between 

business areas, and works to disseminate D&I information.

© 2022 Fannie Mae 2021 ESG Report | 24

TABLE OF CONTENTS EMPLOYEES / HUMAN CAPITAL
In 2021, we established the Employee Inclusive Culture Council, 

a cross section of employees who steer inclusive practices 

throughout the company. EICC members serve one-year terms, 

and their work focuses on defining the right behaviors in support 

of our mission and values, helping to align corporate initiatives 

and programs to the desired culture, and developing cultural 

communications and sustainability strategies.

Our Employee Resource Groups — grassroots organizations of 

employees aligned around a dimension of identity protected by 

law (i.e., age, disability, race, religion, national origin, sex, LGBTQ, 

veteran status) — are instrumental in supporting our diverse 

team members and fostering a culture of shared understanding. 

These voluntary groups are open to all employees. 

Training and other programs

Fannie Mae’s D&I training program provides comprehensive 

coursework for employees to build important skills and 

competencies to promote inclusion. Employees can access 

resources and register for development sessions through our 

internal learning platform, FMU. Virtual and in-person professional 

development and training opportunities are available.

SASB FN-IB-330a.1 

Employee volunteerism and giving

Our company’s policies and programs encourage 

volunteerism on many levels and support employee 

interests through philanthropic giving. This includes 

matching up to $5,000 per year in charitable gifts to 

eligible U.S.-based nonprofit organizations and offering 

up to 10 hours of paid leave each month for employees 

to participate in volunteer activities. Through the 

company’s matching gifts program, employees, Board 

members, and the company collectively donated over 

$6 million to eligible nonprofits in 2021.

© 2022 Fannie Mae 2021 ESG Report | 25

TABLE OF CONTENTS EMPLOYEES / HUMAN CAPITAL
Task Force on Climate-related 

Financial Disclosures

We continue to integrate climate considerations into our 

organization. Our approach to identifying, assessing, 

mitigating, and reporting on climate-related risks is informed 

by the recommendations of the TCFD. See the Corporate 

Governance and Risk Management chapters and our 

TCFD Index for more details.

Environment

SECTION 4

Climate Risk & 

Resilience

We are focused on understanding and addressing the physical 

and transition risks presented by climate change. We are also 

focused on how climate change and responses to climate 

change could affect the homeowners and renters we serve. 

From a safety and soundness perspective, our climate strategy 

is designed to help us understand and address our financial 

exposure to climate-related risks as we respond to the realworld impacts of climate change. To meet this need, our climate 

strategy is built around three pillars: 

• Exposure: quantify and continue to refine methods 

for quantifying our financial and business exposure to 

climate-related risks and opportunities. 

• Mitigation: develop continuous mitigation capabilities 

to address these risks and leverage opportunities. 

• Awareness: communicate with our employees and 

stakeholders (e.g., regulators, lenders, investors, and 

consumers) about these important issues. 

As we execute and evolve our strategy, much of our work 

has particular emphasis on addressing a few key immediate 

challenges and gaps across resiliency, insurance, and awareness. 

We are working to enhance the resiliency of current and future 

U.S. housing stock, with a long-term aim of making properties 

better able to either withstand or recover quickly from climaterelated events. Additionally, we aim to raise awareness so that 

homeowners, renters, and property owners are adequately 

insured, especially regarding flooding, to reduce the likelihood 

of significant financial loss or housing instability. Finally, we seek 

to promote homeowner and renter education and awareness 

of the risks and the options they have both before and after 

they move into a property. 

We are also keenly aware of the intersection of climate risk with 

other ESG focus areas, including housing affordability and racial 

equity. The costs of insurance, resiliency and retrofit measures, 

and rebuilding could put quality housing out of reach for many 

more people. As part of our mission, we aim to promote and 

facilitate responses to climate change that preserve and enhance 

affordability and equity. These perspectives inform both our 

understanding of climate-related risks and our approach to 

mitigating them.

Identifying and assessing climate-related risks

We align our classification of climate risk impacting the housing 

system and our organization with TCFD’s categorization of physical 

and transition risks. Physical risks resulting from climate change 

© 2022 Fannie Mae 2021 ESG Report | 26

TABLE OF CONTENTS ENVIRONMENT / CLIMATE RISK & RESILIENCE
CLIMATE-RELATED PHYSICAL AND TRANSITION RISKS

Risk type Description

Physical risk Acute Event-driven risks related to shorter-term extreme weather events, such as from flooding 

(coastal, fluvial, and pluvial), wildfires, and major storms (e.g., hurricanes, tornadoes).

Chronic Risks resulting from longer-term weather patterns and related effects, such as sea level rise 

(which may contribute to nuisance flooding), sustained higher temperatures (resulting in more 

severe and/or extended droughts, heat waves, etc.), as well as related effects such as decreased 

arability of farmland, decreased habitability of land, and decreased availability of fresh water.

Transition risk Policy & legal risks Risks of new or evolving requirements at the international, national, and/or state level 

(e.g., changing federal/state regulations, home and flood insurance, litigation).

Technology risks Risks of new technologies and investments related to the transition to a lower-carbon 

economy (which may include disruption to existing industries, organizations, etc.).

Market risks Risks of policies to encourage a shift to a lower-carbon economy (resulting in, e.g., changes 

in consumer perceptions of value on home location, price, and other characteristics).

Reputational risks Risks of changing customer or community perceptions of an organization’s contribution 

to or detraction from the transition to a lower-carbon economy. 

are those arising from event-driven (acute) and long-term shifts 

(chronic) in climate patterns. Transition risks are those resulting 

from actions taken to transition to a lower-carbon economy. 

Given the long-term nature of both climate change and housing 

finance, we are currently evaluating the potential impacts of 

these climate risks over the short, medium, and long term to 

assess the potential impacts to our business and financial results.

Physical and transition risk analysis

Our physical and transition risk analysis is nascent and 

evolving. We are working to improve our physical and 

transition risk analysis in order to inform business decisions. 

Together with our regulator and conservator, FHFA, we are 

working to understand the impact that climate change may 

have on U.S. housing.

In the future, we also aim to leverage scenarios from the 

Network for Greening the Financial System (NGFS) to provide a 

common reference point for understanding how climate change, 

climate policy, and technology trends could evolve in different 

future scenarios across both physical and transition risks. 

These scenarios are grouped into four main buckets: Orderly, 

Disorderly, Hot house world, and Too little, too late.31

Mitigating climate-related risk to Fannie Mae

Fannie Mae’s primary financial exposure to climate change 

results from the increase in default risk and potential losses 

in our book of business should climate-related events lead to 

borrower default. As an example of one such hazard, 2.9% of 

single-family loans and 6.3% of multifamily loans Fannie Mae 

owned or guaranteed as of December 31, 2021, were located 

in a FEMA-defined Special Flood Hazard Area (SFHA).32

As a congressionally chartered entity, Fannie Mae is obligated 

to support residential mortgage liquidity nationwide. With 

very rare exceptions (e.g., at-risk properties in communities 

not participating in the National Flood Insurance Program 

and homes in Hawaii in lava zones 3–9), Fannie Mae does not 

currently disqualify any single-family or multifamily property 

on the basis of its geographic location in the United States 

(including Puerto Rico, the U.S. Virgin Islands, and Guam).

31 For further information, see the NGFS Scenarios Portal.

32 Table 13. Single-Family and Multifamily Loans Requiring Flood Insurance at Origination in the Data Tables section of Appendix of this report uses Special Feature Codes 

as reported by lenders at origination. The numbers here are based on updated flood maps to provide an estimate of exposure as of December 31, 2021.

© 2022 Fannie Mae 2021 ESG Report | 27

TABLE OF CONTENTS ENVIRONMENT / CLIMATE RISK & RESILIENCE
Mitigating potential future climate-related 

financial losses

SASB FN-MF-450a.3

For physical hazards, insurance is our most important buffer 

and mitigation measure.33 Currently, for single-family loans, 

Fannie Mae requires coverage for the following hazards: flood, 

windstorm, hurricane, hail damages, or any other perils that 

normally are included under an extended coverage policy 

endorsement. Flooding, however, is typically only covered via 

a separate policy primarily provided by the National Flood 

Insurance Program. We require flood insurance only for loans 

in a special flood hazard area, coastal barrier resources system, 

or otherwise protected area. We confirm compliance with 

this requirement at loan acquisition and work with servicers 

to ensure compliance on an ongoing basis as flood maps are 

updated. However, a significant number of homes outside 

of those areas are also at risk of flooding. We are working to 

increase awareness of flood and other climate-related risks and 

available mitigation measures for these risks, such as insurance. 

For our Multifamily Business, each property must be covered 

by compliant property insurance and liability insurance for 

the term of the mortgage loan, including for windstorms and 

floods (if the property is located in a special flood hazard area 

and to the extent flood insurance is available in that area) 

and earthquakes (where applicable). If the borrower fails to 

maintain any required insurance on a property, the lender must 

obtain the required coverage at the borrower’s expense. Should 

a lender fail to satisfy any servicing requirements, Fannie Mae 

may take steps allowed in the lender's contract to mitigate the 

risk of loss from the failure. Fannie Mae typically assesses each 

lender’s insurance compliance on a biennial basis and requires 

lenders to remedy deficient findings.

Although not a climate-related risk, earthquakes are also 

a known hazard, and we are reevaluating our approach to 

insurance requirements as we work to mitigate this risk 

nationwide. For more information, see the sections Increasing 

awareness of climate-related risk and Protecting current and 

future housing stock below. 

Fannie Mae’s Incident Management Center (IMC), within our 

Enterprise Resiliency & Security team, assesses Fannie Mae 

assets for potential impacts from natural disasters. When a 

disaster occurs, the IMC works with governmental agencies 

to map the impacted geographical area, identifying potentially 

impacted assets in real time to assist servicers with disaster 

relief and risk-mitigation efforts. 

SASB FN-MF-450a.3

33 Fannie Mae’s single-family guidelines for general property insurance coverage and flood insurance can be found in the Single-Family Selling and Servicing Guides. Multifamily 

insurance requirements and guidance related to individual exposures are outlined in the Multifamily Selling and Servicing Guide. To protect both Fannie Mae and consumers, 

we permit only insurance companies meeting specified Fannie Mae requirements.

© 2022 Fannie Mae 2021 ESG Report | 28

TABLE OF CONTENTS ENVIRONMENT / CLIMATE RISK & RESILIENCE
Mitigating climate-related risk to households 

and communities

Fannie Mae is committed to helping homeowners, renters, and 

their communities prevent, prepare for, and respond to natural 

disasters and other climate-related risks. This includes working 

to increase awareness of climate-related risks, protecting current 

and future housing stock, and supporting disaster and recovery 

and rebuild efforts. 

Increasing awareness of climate-related risks

We have been placing a large initial emphasis on making 

homebuyers and renters aware of flood risk. In 2022, we 

launched a risk pilot program in select markets focused on 

educating homeowners inside and outside FEMA-defined 

SFHAs about the risks of flooding. We hope to increase 

homeowners’ understanding of flood risk and hazards, 

as well as educate them on the importance of taking floodrisk mitigation measures. 

In addition, we have been updating the disclosure process 

and documents for our REO sales to increase transparency 

on and access to flood-related information. Under current 

residential real estate disclosure rules, which vary from state to 

state, potential homebuyers rarely receive information related 

to historical flooding and flood risk during the homebuying 

process. To help reduce this information gap, Fannie Mae 

requires property listing agents to disclose known flood events 

to prospective purchasers of our REO properties where a listing 

agent has knowledge or reports of prior flooding events.

Protecting current and future housing stock

One important way to mitigate climate-related risk is to ensure 

that more properties are built or renovated to withstand extreme 

weather and other effects of climate change. We are working 

to support these efforts in several ways, including through 

specialized loan products and collaboration to strengthen 

building standards. 

Fannie Mae’s HomeStyle Energy loans provide homeowners 

with affordable options for financing upgrades that can improve 

the sustainability and resiliency of their homes. In addition 

to energy upgrades such as new insulation or renewable 

energy systems, the loans can be used to finance resiliency 

improvements such as storm surge barriers, upgraded roofing, 

or wildfire home hardening. We are also working to help expand 

the construction of certified green homes. (For additional 

information, see the Green Homes chapter.) 

Improving building standards helps to ensure that climate 

risks are taken into account during construction and that best 

practices are shared across communities and the housing 

industry. For example, Fannie Mae is currently partnering with 

the Insurance Institute for Business & Home Safety to highlight 

existing and emerging building standards and to tie the work 

of builders and consumers to investors who want to support 

resilient housing. 

Supporting disaster recovery and rebuild efforts

When disasters occur, it is vital for individuals and communities 

to have the tools they need to recover and seize opportunities 

to rebuild with greater resilience against future threats. Our 

dedicated Disaster Response and Rebuild Team works to 

advance our comprehensive disaster relief efforts focused 

on long-term rebuilding and resiliency. These engagements 

not only let us offer support in a time of need but also forge 

partnerships and help us learn about local needs, which can 

further strengthen our efforts for the future.

Our comprehensive disaster and hardship response includes 

policies and guidance in our Selling and Servicing Guides, as well 

as other solutions designed to assist individuals, families, and 

communities during times of crisis, such as after climate-related 

natural disasters. For more information on assistance programs 

for homeowners, renters, servicers, and others, see the Support 

in a crisis section in the Housing Stability chapter.

© 2022 Fannie Mae 2021 ESG Report | 29

TABLE OF CONTENTS ENVIRONMENT / CLIMATE RISK & RESILIENCE
SPOTLIGHT 

Improving the sustainability 

of our operations

Although the environmental impacts of our corporate 

operations are small in comparison to those of the broader 

housing system, managing them is an important element 

of our overall ESG strategy. By conserving resources and 

minimizing our footprint, we not only demonstrate our 

commitment to environmental sustainability but also reduce 

costs, enhance our resilience, and create safer, healthier, 

and more productive environments for our employees. 

As a financial services company, a key area of our operational 

environmental impacts is associated with our physical offices. 

These include impacts of the energy and resources used to 

build and operate them, as well as employees commuting 

to and from their homes. Although these impacts have been 

greatly reduced due to the ongoing COVID-19 pandemic, 

we have continued working to implement best practices 

and further reduce our footprint. 

A key part of our approach to reduce our footprint is 

transitioning the majority of our offices to certified green 

buildings, which employ leading-edge design, technology, 

and building practices to reduce energy and water use and 

minimize other negative environmental impacts. Starting in 

2017, we began consolidating our offices in both Washington, 

D.C., and Dallas, Texas. In Dallas, we consolidated three offices 

with total square footage of approximately 450,000 square feet 

to our single Plano office, which is LEED Silver certified and 

has a square footage of approximately 180,000 — a reduction 

of about 60%. In Washington, D.C., we consolidated five offices 

with a total area of approximately one million square feet 

to a new headquarters housed in a LEED Gold building that 

reduced square footage occupied by about 30%. We have also 

moved several thousand employees to new offices in Reston, 

Virginia, to a building that we expect will receive a LEED Gold 

designation for design and construction and Silver designation 

for commercial interiors. With these changes, the majority of our 

employees are now based out of just three main office buildings 

and four regional office buildings. 

Since most of our offices are leased, we often do not have direct 

control over many aspects of their operation. However, where 

possible, we prioritize the use of energy- and resource-efficient 

technologies and practices beyond those incorporated into base 

building design. For example, at our three largest facilities, we 

have installed building monitoring and control systems that track 

real-time usage of spaces and adjust light usage accordingly. 

In addition to these efforts, we have secured or are working 

to secure Fitwel certifications for each of our key locations. 

Originally developed by the Centers for Disease Control and 

Prevention and the U.S. General Services Administration, Fitwel is 

a building certification that focuses on improving, enhancing, and 

safeguarding the health and well-being of building occupants.

© 2022 Fannie Mae 2021 ESG Report | 30

TABLE OF CONTENTS ENVIRONMENT / SUSTAINABLE OPERATIONS
Green Homes

Fannie Mae is leveraging our leading role in the mortgage 

finance market to encourage property owners and developers 

to make environmentally beneficial improvements to their 

properties. At the core of our approach is our support for 

single-family and multifamily green financing. 

Green mortgage financing

We offer financing to lenders for loans that help property 

owners and developers invest in greener technologies and 

building practices. This includes properties where owners 

are making energy and water efficiency improvements, 

or installing renewable energy generation systems, and/or 

that have received one of the third-party green building 

certifications recognized by Fannie Mae.

Multifamily Green Financing

Since 2012, Fannie Mae’s Green Financing program has 

supported multifamily owners as they increase the energy 

and water efficiency of multifamily housing by integrating 

green mortgage loan products into the standard financing 

process. We currently offer two Multifamily Green Financing 

products: Green Rewards Mortgage Loans and Green 

Building Certification Mortgage Loans. These products offer 

financial incentives for owners to improve the environmental 

performance of their properties. In addition, reduced utility 

costs may improve net cash flow for property owners and/or 

increase affordability for renters. 

Green Rewards Mortgage Loans encourage investments in 

efficiency improvements or renewable energy generation for 

existing multifamily properties. Owners commit to installing 

improvements — within 12 months of loan origination — that are 

projected to achieve specified reductions in the property’s energy 

usage and water usage that sum to at least 30%, of which a 

minimum of 15% must be projected energy savings. Fannie Mae 

supports owners in navigating the process of efficiency upgrades 

by paying for an energy and water audit, as well as a Technical 

Solar Assessment for owners committing to install a solar 

photovoltaic (PV) system. These reports, prepared by qualified 

third-party consultants, identify and quantify specific efficiency 

and renewable energy improvements owners can make to 

qualify for a Green Rewards Mortgage Loan. Fannie Mae requires 

that all products, fixtures, and appliances be ENERGY STAR®- or 

WaterSense®-certified, if available. 

Green Building Certification Mortgage Loans are loans on 

properties that have been built, retrofitted, or operated to high 

standards of efficiency and received a third-party green building 

certification recognized by Fannie Mae. We conduct an annual 

market analysis and a technical evaluation of green building 

certifications to determine which certifications are eligible for 

inclusion in the Green Building Certification program. For more 

information on the certifications we currently recognize and 

other requirements, see Fannie Mae Form 4250.

Single-Family Green Financing

Fannie Mae’s Single-Family Business offers products that support 

both improvements of existing buildings and development of 

more efficient new homes. 

Recognizing that enhancing environmental performance 

of existing homes often requires significant investments, 

Fannie Mae’s HomeStyle Energy mortgage loan improves 

affordability and flexibility by allowing financing based on 

the value of the home after improvements are made, enabling 

homeowners to access additional upfront funds while 

potentially decreasing utility and repair costs in the future. 

These loans can be used as part of a purchase or refinancing 

to pay for improvements that reduce utility costs and improve 

the comfort of a home, such as adding new insulation or 

installing renewable energy systems. Furthermore, HomeStyle 

Energy can be used to refinance existing energy-related 

debt, allowing homeowners to reduce the financing costs 

of previous improvements to their home. The mortgage 

product can also be used to finance features that increase 

resilience against natural disasters, such as storm surge 

barriers, earthquake retrofitting, or brush and tree removal 

in fire zones. In 2021, Fannie Mae acquired $505 million in 

HomeStyle Energy mortgage loans.

Fannie Mae also works to incentivize green building in new 

homes, including financing for homes that have specific green 

building certifications. For more information, see Single-Family 

Green Bonds below. 

© 2022 Fannie Mae 2021 ESG Report | 31

TABLE OF CONTENTS ENVIRONMENT / GREEN HOMES
Green Bonds

Fannie Mae securitizes certain loans we acquire through 

our Green Financing programs into Green Mortgage-Backed 

Securities (Green MBS). 

We began issuing Green Bonds in 2012, and through 2021 we 

have issued $101.6 billion in Green MBS and $13.4 billion in 

Green resecuritizations. In 2021, we became the first issuer to 

reach $100 billion in green bond issuances. According to the 

Climate Bonds Initiative, Fannie Mae was the largest cumulative 

issuer of green bonds in the world through December 2021. 

Multifamily Green Bonds

We issue Multifamily Green Bonds through two types of securities: 

Multifamily Green MBS and Green Fannie Mae Guaranteed 

Mortgage Structures (GeMSTM). These bonds benefit from many 

of the same features as our other Multifamily MBS offerings, 

including certain prepayment protections, credit policies, 

and Fannie Mae’s guaranty of timely principal and interest 

payments. The underlying mortgage loans must also conform 

to Fannie Mae’s Multifamily Green Bond Framework, which 

lays out our requirements and commitment to accountability, 

transparency, and impact reporting in green financing.

Fannie Mae Multifamily Green MBS is similar to our Multifamily 

MBS, in that it is generally backed by one loan and one property. 

For loans to be included in Fannie Mae Multifamily Green MBS, 

the underlying loan must be either a Green Rewards Mortgage 

Loan or a Green Building Certification Mortgage Loan. 

Green GeMS are pools of Green MBS that are resecuritized in a 

structured product known as a real estate mortgage investment 

conduit (REMIC). All of the loans in the Green MBS backing a 

Green GeMS transaction are Green Rewards or Green Building 

Certification Mortgage Loans. Investors typically invest in Green 

GeMS because they seek a more diversified investment product 

than a Green MBS backed by a single loan. Green GeMS offer 

investors geographic or property-type diversity, larger-size 

investments, and customized cash flows to fit investor preferences. 

Fannie Mae began issuing Green MBS-backed GeMS deals in 

2017. These GeMS deals have ranged in size from $500 million to 

$1.1 billion, are U.S. dollar-denominated, and are backed by the 

same Fannie Mae guaranty of timely payment of principal and 

interest as the underlying MBS pools.

In 2021, Fannie Mae issued approximately $13.5 billion in 

Multifamily Green MBS and resecuritized $2.4 billion of Green 

MBS into Green GeMS securities. 

Single-Family Green Bonds

Fannie Mae began issuing Single-Family Green MBS in 2020. 

In line with our Single-Family Green Bond Framework, these 

Green Bonds are backed by pools of mortgage loans secured 

exclusively by newly constructed single-family homes with green 

building certifications.34 To be eligible, these homes must meet 

or exceed the national program requirements for ENERGY STAR 

Certified Homes, Version 3.0, which are, on average, 20% more 

efficient than single-family homes built to each state’s code.35

34 More information can be found on our website’s Single Family Green MBS page.

35 “About the ENERGY STAR Residential New Construction Program.” 2019. Energystar.gov. 2019. https://www.energystar.gov/partner_resources/residential_new/about

© 2022 Fannie Mae 2021 ESG Report | 32

TABLE OF CONTENTS ENVIRONMENT / GREEN HOMES
Fannie Mae has engaged PEG, LLC, an industry leader in 

residential energy efficiency and engineering, to provide 

independent validation of the green building certifications 

of the properties backing the loans prior to being included 

in our Single-Family Green Bonds. We have taken this extra 

step to promote accountability and rigor. 

In 2021, we expanded our network of lender partners and 

our resulting geographic footprint, issuing $513 million in 

Single-Family Green MBS and bringing our total issuance 

to $606.7 million since the program’s inception.

See Table 11. Green Bond Issuance in the Data Tables section 

of the Appendix for more information. 

Delivering meaningful and measurable impact

Fannie Mae has identified a set of core environmental and 

social outcome metrics to assess the estimated impacts of our 

Green Bonds, and we employ a robust methodology to measure 

these impacts. 

Environmental impact

Based on third-party projections, we estimate the loans on 

properties underlying Fannie Mae’s 2021 Green Bond issuances 

will save approximately 1.5 billion kilo British thermal units 

(kBtu) of energy. As a result, we estimate the loans on properties 

underlying our 2021 Green Bonds will prevent approximately 

84,000 metric tons of carbon dioxide equivalent (mtCO2e) in 

greenhouse gas emissions.

In addition, based on third-party projections, we estimate the 

loans on properties underlying our 2021 Multifamily Green 

Bonds will save approximately 473 million gallons of water.

Our estimates of the positive environmental impacts of the 

loans backing the Green Bonds that we issue are based 

on a projected one-year impact, even though many of the 

environmental benefits of these loans may continue to be 

realized for more than one year.36

Social impact

We believe the loans backing the Green Bonds we issue also 

generate positive social impact, including by reducing the energy 

costs faced by households. Based on third-party estimates, 

we project that our 2021 Green Bonds could result in average 

annual utility cost savings of approximately $264 for single-family 

households and $219 for multifamily households.37

See Table 12. Projected Green Bond Impacts in the Data Tables 

section of the Appendix and visit our Bond Impact Reporting 

webpage for more information.

Providing transparency to investors

We align our Green Bonds and eligibility requirements 

with industry standards and bodies, such as ENERGY STAR, 

WaterSense, the American Society of Heating, Refrigerating and 

Air-Conditioning Engineers (ASHRAE), and others. We annually 

36 For a description of our methodology for estimating the positive environmental impact of the loans backing our Green Bonds, see the impact methodology on our 

Green Bonds webpage. 

37 Multifamily estimates based on Green Rewards loans only. See the impact methodology on our Green Bonds webpage for more detail.

© 2022 Fannie Mae 2021 ESG Report | 33

TABLE OF CONTENTS ENVIRONMENT / GREEN HOMES
reassess our Single-Family and Multifamily Green products 

and their eligibility criteria to evaluate opportunities to 

increase our impact. 

Our Green Bonds are aligned with the ICMA Green Bond 

Principles — voluntary guidelines designed to promote 

transparency, disclosure, and integrity in the global green 

bond market. We have also obtained independent, researchbased evaluations from CICERO Shades of Green, a leading 

global provider of green ratings for bonds. In 2020, both our 

Multifamily and Single-Family Green Bond Frameworks received 

an overall Light Green rating and a governance score of Good. 

In recognition of the value provided by increasing the efficiency 

of existing properties, CICERO gave our Green Rewards Mortgage 

Loan product a higher Light to Medium Green rating. Additional 

details on CICERO’s ratings of Fannie Mae Green Bonds are 

available on our Green Bonds webpage.

In addition, we are committed to providing comprehensive 

disclosures about our securitization process and the projected 

environmental and social impacts of our Green Bonds. This 

includes making green impact metrics, including at the level 

of individual securities, available through our Green Bonds 

webpage and our DUS Disclose® platform, and detailed product 

information available via our DUS Disclose, PoolTalk®, and 

Data Dynamics® platforms. For more detail about Fannie Mae’s 

existing Green Bond disclosures, please see our Green Bond 

Disclosures At a Glance guide.

Leading and influencing the market 

for green homes

In addition to the direct impacts we create, we also leverage 

Fannie Mae’s position to advance the wider market for 

green homes. 

We seek to expand knowledge of best practices in green 

finance. Through active engagement in conferences, trainings, 

and roundtables, as well as published reports, Fannie Mae 

continues to invest in educating the market about the 

benefits of green building and efficiency improvements 

and the tools available to support stakeholders pursuing 

these opportunities. 

We also reassess our standards regularly and pursue 

opportunities for developing best practices. For example, in 2020 

we were the first in the market to introduce an audit protocol 

and standardized due diligence for multifamily solar PV system 

installation as part of our Multifamily Green Rewards Mortgage 

Loan product. Installing solar panels requires evaluating 

and navigating a range of building, cost, tax, legal, and local 

regulatory considerations, as well as other factors. Our Technical 

Solar Assessment standardizes the collection of relevant data to 

support consideration of these factors, which helps reduce risk 

for the borrower, lender, and Fannie Mae. In addition, when we 

raise our minimum requirements for green building certifications, 

this has ripple effects for certification organizations; at least 

two have imposed minimum requirements and/or launched 

new certifications as a result of Fannie Mae raising its minimum 

requirements for green building certifications we accept. 

Lack of high-quality, reliable data and tracking capabilities 

has been a limiting factor for green finance to date; these data 

and capabilities are needed to support ongoing analysis and 

decision-making related to environmental performance and 

green attributes of residential properties. Many existing data 

sets on single-family and multifamily properties do not include 

extensive data on home energy efficiency or the components 

driving a home’s energy consumption. With this challenge 

in mind, since 2018, Fannie Mae’s Green Measurement and 

Verification (M&V) Service has provided support to multifamily 

lenders and borrowers to simplify the verification and annual 

energy and water reporting process that is required for our 

green mortgage loans. Through this program, expert energy 

analysts from Bright Power work with borrowers to facilitate 

the collection of whole property energy and water data. 

Among other benefits, the Green M&V Service helps provide 

robust data that enables a better understanding of the 

performance and impact of efficiency measures put in place 

for multifamily properties. This work helps us further enhance 

performance and improve our Green Financing programs. 

In the spirit of advancing the market generally, we published 

a white paper detailing our experience implementing the M&V 

Service, outlining the current opportunities and limitations 

of data collected for the Fannie Mae Multifamily Green 

Mortgage Loan portfolio, much of which may be applicable 

for multifamily utility efficiency programs more broadly.

© 2022 Fannie Mae 2021 ESG Report | 34

TABLE OF CONTENTS ENVIRONMENT / GREEN HOMES
Governance

SECTION 5

Corporate Governance 

& ESG Oversight

Fannie Mae maintains a corporate governance structure with 

a focus on upholding high standards of corporate conduct 

and compliance. Our Corporate Governance Guidelines and 

bylaws establish the structure, roles, and responsibilities of our 

Board of Directors and leadership team, along with other key 

governance policies and practices. Our governance framework 

also includes clear guidelines for oversight of our ESG strategy 

and performance. 

Because Fannie Mae is currently in conservatorship, its Board 

of Directors serves on behalf of Fannie Mae’s conservator, FHFA, 

and exercises its authority as directed by and with the approval 

of, where required, the conservator. See our annual report on 

Form 10-K for the year ended December 31, 2021, filed with 

the SEC on February 15, 2022 (“2021 Form 10-K”) for more 

information on our Board of Directors and executive officers, 

including the composition of our Board and specified corporate 

governance matters, as of the 2021 Form 10-K filing date.

ESG and climate oversight

The Senior Vice President of ESG is responsible for the overall 

direction of our ESG strategy and oversight of our work to 

integrate ESG priorities throughout our business. The ESG 

team is dedicated to partnering with internal and external 

stakeholders to develop and implement our ESG strategy 

in accordance with the policies and priorities set by our senior 

management and Board of Directors. 

Climate change oversight and management

Our Chief Climate Officer is responsible for developing our 

capabilities for managing risks and opportunities associated 

with the impact of climate change on housing and on our 

business. The Chief Climate Officer, who reports to the Chief 

Financial Officer, sets strategic direction, drives first-line 

integration and risk management, and develops the people, 

processes, and technology to identify, assess, manage, and 

monitor climate-related risks in alignment with the Enterprise 

Risk Management framework. 

© 2022 Fannie Mae 2021 ESG Report | 35

TABLE OF CONTENTS GOVERNANCE / CORPORATE GOVERNANCE
OVERSIGHT OF ESG AT FANNIE MAE

Board oversight Management oversight and accountability

ESG strategy The Community Responsibility and 

Sustainability Committee oversees 

development and implementation of 

strategy related to ESG and climate, 

including access to credit, affordable 

housing, climate risk and resilience, racial 

equity in housing finance, fair lending, 

and sustainability, including our green 

financing activities. 

The Management Committee oversees the development and 

implementation of the company’s ESG strategy and goals. The 

Management Committee recommends annual management 

performance goals to the Board, including goals relating to ESG, 

and oversees management’s progress in achieving those goals. 

ESG strategy is led by the SVP of ESG, within our Chief Administrative 

Office. Climate strategy is led by our Chief Climate Officer, within 

the office of the Chief Financial Officer.

The ESG Advisory Council is a cross-functional senior management 

council whose primary roles are to promote transparency of ESG 

efforts across Fannie Mae, enable effective prioritization and resource 

allocation across ESG efforts, and inform decision-making for highpriority ESG issues.

Risk management The Risk Policy and Capital 

Committee oversees the company’s 

risk management framework, which 

includes climate-related risks. 

The Enterprise Risk Committee oversees enterprise-wide risk 

management activities, including for strategic, reputational, 

compliance, credit (including counterparty), market, funding 

and liquidity, and operational (including model) risks. Fannie Mae 

has several other management-level committees that escalate 

to the Enterprise Risk Committee and cover specific areas of risk 

applicable to the company.

The Enterprise Risk Management (ERM) division is responsible 

for developing and maintaining the company’s integrated risk 

management program, including establishing appropriate policies 

and frameworks and cultivating a proactive corporate risk culture. 

ERM, Compliance & Ethics, and support functions such as Finance 

and Human Resources are charged with independent monitoring 

and oversight of risk associated with their areas of expertise.

ESG reporting & 

disclosures

The Audit Committee provides 

oversight of ESG-related reporting and 

disclosures, as well as any external 

assurance over that reporting.

The Disclosure Committee reviews our annual ESG Report and 

evaluates the effectiveness of our controls relating to ESG reporting.

Development of the ESG Report is coordinated by the ESG team, 

in close partnership with the Climate Impact team and other 

relevant teams throughout our business.

The Climate Impact team, led by the Chief Climate Officer, 

is the centralized group responsible for understanding the 

risks climate change poses for Fannie Mae and coordinating 

Fannie Mae’s efforts to mitigate those risks. The team works 

closely with our first-line Single-Family and Multifamily 

Business teams and second-line ERM function. 

ERM develops and leads enterprise implementation of 

Fannie Mae’s Climate-Related Risk Management Framework 

and supporting processes. ERM also provides oversight on 

and effective challenge to the Climate Impact team and 

first-line risk owners. Additionally, several management-level 

committees, including the Enterprise Risk Committee, oversee 

the company’s climate-related risk activities.

The table below provides more information on oversight and 

management of ESG and climate matters by our Board of 

Directors, senior management, selected corporate functions, 

and specialist teams.

© 2022 Fannie Mae 2021 ESG Report | 36

TABLE OF CONTENTS GOVERNANCE / CORPORATE GOVERNANCE
Risk Management

Effective risk management is essential to Fannie Mae’s ability 

to provide liquidity, stability, and access to credit to the U.S. 

housing market and to fulfill our mission to facilitate equitable 

and sustainable access to homeownership and quality 

affordable rental housing across America. To ensure the safety 

and soundness necessary to advance our mission through 

all market cycles, we undertake activities that support 

integrated risk management across our business, promoting 

risk awareness and ensuring a consistent and disciplined 

approach to operating within an appropriate risk tolerance.

Risk culture and capabilities

Risk management is a responsibility shared by every Fannie Mae 

employee. That’s why we work to build and maintain a proactive 

risk culture and to provide employees with the knowledge 

and resources they need to recognize and respond to risks 

that arise in our business. This includes policies, procedures, 

tools, trainings, and other resources we use to embed risk 

management across the company, such as our enterprise-wide 

digital Governance, Risk, and Compliance platform for enabling 

efficient and effective management of risk and compliance. 

For more information on Fannie Mae’s risk management, 

including a description of our enterprise risk management 

program and our primary areas of risk exposure, see 

the “Management’s Discussion and Analysis of Financial 

Condition and Results of Operations — Risk Management” 

section of our 2021 Form 10-K.

© 2022 Fannie Mae 2021 ESG Report | 37

TABLE OF CONTENTS GOVERNANCE / RISK MANAGEMENT
Climate risk management

As the risks associated with climate change become an increasing focus for our business, we are taking 

steps to integrate climate risk considerations into our Enterprise Risk Management framework. We are 

focused on developing and implementing a comprehensive, integrated approach to the identification, 

assessment, and management of climate-related risks and opportunities. This section outlines how we 

are doing this in the context of our wider approach to risk management. For additional information on 

how we are measuring and responding to climate risks associated with our business, see the Climate 

Risk & Resilience chapter. For additional information on climate risk governance, see the Corporate 

Governance & ESG Oversight chapter.

Risk definition and taxonomy

Fannie Mae maintains a corporate risk taxonomy, which serves as a comprehensive listing of risk categories 

that align with our seven major risk categories.38 We view climate risk as a cross-cutting risk driver that can 

manifest through a variety of the existing risk categories across our risk taxonomy.

We plan to employ the TCFD categorization of physical and transition climate risks (see the Climate Risk & 

Resilience chapter). In 2021, ERM, in collaboration with the Climate Impact team, completed an integration 

of physical and transition climate risks into the corporate risk taxonomy. This effort establishes a foundation 

to inform more granular risk identification and assessment across the company.

Establishing our climate risk management framework

Our ERM and Climate Impact teams continue to establish and evolve Fannie Mae’s approach to climaterelated risk management. Our efforts in developing and advancing our climate risk management framework 

aim to align with TCFD’s recommendations and incorporate the elements of governance, strategy, risk 

management, and metrics and targets. 

We are focused on formalizing our climate risk management framework into corporate policies and 

standards, enhancing our climate risk capabilities, continuing to enhance reporting and disclosure, and 

adapting risk identification and assessment methodologies to support assessment of climate risks across 

short-, medium-, and long-term time horizons. 

Internal climate training and support

Our strong risk management and governance depends upon employees being well-informed and aware 

of the risks facing our business and the housing industry. Led by the Climate Impact team, several climate 

management and awareness-building initiatives are in place to help increase understanding of climaterelated matters and ensure business units are integrating climate-related risks and opportunities into their 

day-to-day considerations and actions, such as growing our Climate Action Working Group that involves 

teams across the enterprise.

38 For more information on the major risk categories, see our 2021 Report on Form 10-K, pp. 143–144.

© 2022 Fannie Mae 2021 ESG Report | 38

TABLE OF CONTENTS GOVERNANCE / RISK MANAGEMENT
Business Ethics

SASB FN-IB-510b.4

Earning and maintaining stakeholders’ trust is essential to our 

mission. We maintain high standards for ethical conduct for our 

employees, our Board, and our partners.

Employee Code of Conduct

The Fannie Mae Employee Code of Conduct (the “Employee 

Code”) outlines the standards and behaviors we expect of all 

employees and is firmly rooted in our mission and values. In 

addition to guiding principles, the Employee Code establishes 

specific expectations for issues, including legal and regulatory 

compliance, non-discrimination, workplace safety, anti-fraud, 

antitrust, conflicts of interest, and more. The Employee Code 

is supplemented by related internal policies, standards, and 

procedures, as well as the Employee Handbook, which together 

provide detailed guidance for identifying and managing 

compliance, legal, and ethical issues across our business. 

SASB FN-IB-510a.2

Each employee is responsible for understanding and upholding 

the Employee Code in their day-to-day work, including acting 

to prevent and/or immediately report inappropriate conduct. 

The Employee Code outlines several avenues by which 

employees may report suspicions of misconduct:

a. Employees may report questions or concerns to any 

member of their management team, Human Resources, 

and/or to our Compliance and Ethics team via the Fannie 

Mae Ethics hotline or webline.

b. Employees may report their concerns anonymously through 

our internal reporting hotline, webline, email, or regular mail.

c. Employees have the option to confidentially report 

potential wrongdoing directly to the Audit Committee 

of Fannie Mae’s Board of Directors. Employees are also 

informed that they may raise potential violations or 

other inappropriate conduct externally to FHFA’s Office 

of Inspector General.

SASB FN-IB-510a.2

Employees are required to take annual Employee Code of 

Conduct training and, as part of that training, certify that they 

have read and understand the Employee Code.

Director Code of Conduct 

Fannie Mae’s Code of Conduct for the Board of Directors

(the “Director Code”) outlines duties and responsibilities 

of members of the Board, provides guidance to help them 

recognize and deal with ethical issues, provides mechanisms 

to report unethical conduct, and helps foster a culture of 

honesty and accountability. Each member of the Board must 

annually certify their compliance with the Director Code. 

The Nominating and Corporate Governance Committee of 

the Board of Directors is charged with the implementation 

and regulation of the Director Code.

Requirements for contractors and consultants 

We also maintain Service Requirements for Contractors 

and Consultants (SRCC), which require workers employed 

by our vendor partners to demonstrate ethical behavior 

in the performance of services for Fannie Mae. The SRCC 

further outlines expected behaviors and guidance for 

supplier personnel, such as valuing and respecting others, 

avoiding conflicts of interest, supporting a productive and 

safe workplace, and raising compliance and ethics concerns. 

Supplier personnel are informed of the various channels 

through which they may contact our Compliance and Ethics 

team and/or our vendor partners to report any concerns.

SASB FN-IB-510b.4

© 2022 Fannie Mae 2021 ESG Report | 39

TABLE OF CONTENTS GOVERNANCE / BUSINESS ETHICS
Data Privacy & Security

Breaches in data and information security can lead to major 

disruptions that have the potential to cause significant 

business harm. Given our size and our role in the financial 

services industry, Fannie Mae has been, and likely will 

continue to be, the target of cyber attacks, computer viruses, 

malicious code, and other information security threats. 

In addition, factors such as the increasing variety and 

sophistication of these threats, our migration to cloud-based 

systems, and the large number of our employees working 

remotely further heighten our risk. As of our 2021 Form 10-K 

filing date of February 15, 2022, we had not experienced any 

material losses relating to cyberattacks.

Cybersecurity risk management

SASB FN-CB-230a.2

Fannie Mae continually works to secure and protect the 

financial information of millions of borrowers, as well as 

information related to lenders, servicers, employees, investors, 

and website visitors. Our cybersecurity risk management 

program aligns with the Committee of Sponsoring 

Organizations of the Treadway Commission (COSO) Enterprise 

Risk Management framework and the National Institute of 

Standards and Technology (NIST) Framework for Improving 

Critical Infrastructure Cybersecurity. Our approach also 

continues to evolve based on the changing needs of our 

business, the evolving threat environment, and regulatory 

guidance. Our cybersecurity risk management program 

includes evaluation of third parties that could be a source 

of cybersecurity risk, including customers that use our 

systems and third-party service providers.

We continuously examine the effectiveness and maturity of 

our cyber defenses through various means, including internal 

audits, targeted testing, incident response exercises, maturity 

assessments, and industry benchmarking. We also continue to 

strengthen our partnerships with the appropriate government 

and law enforcement agencies and with other businesses 

and cybersecurity services in order to understand the full 

spectrum of cybersecurity risks in the environment, enhance 

our defenses, and improve our resiliency. In addition, we have 

obtained insurance coverage relating to cybersecurity risks.

Cybersecurity risk is overseen by the Board of Directors and 

its Risk Policy and Capital Committee.39 The Board has also 

delegated oversight authority for specified cybersecurity 

risk matters to certain management-level committees. 

Management also discusses cybersecurity developments 

with the Chair of the Risk Policy and Capital Committee 

and other Board members between Board and committee 

meetings, as appropriate.

Policies and procedures

Helping protect data and information is a responsibility that 

is shared by everyone at Fannie Mae. Our Employee Code and 

related policies — including our Confidential Information and 

Privacy Policy, Information Security Policy, Technology Use 

Standard, and Cyber Risk Policy — establish clear expectations, 

procedures, and other requirements for how we help protect 

and manage information. 

39 The Board’s Strategic Initiatives and Technology Committee also oversaw cybersecurity risk from 2021 until its dissolution in August 2022. 

© 2022 Fannie Mae 2021 ESG Report | 40

TABLE OF CONTENTS GOVERNANCE / DATA PRIVACY
Fannie Mae’s Information Security team is responsible for 

detecting, investigating, and responding to information 

security threats and incidents that have a potential impact 

on Fannie Mae’s information and technology environment. 

Information Security involves the company’s Privacy Office 

for events involving the potential disclosure of confidential 

information that may result in regulatory, reputational, and/

or financial impact on Fannie Mae. The Privacy Office initiates 

the Privacy Event Response Team (PERT) in the case of a 

privacy threat or incident that could have a significant impact 

on Fannie Mae. PERT is a cross-functional team charged 

with leading, analyzing, escalating, and communicating to 

help ensure that clients, regulators, and/or other parties are 

appropriately notified of privacy-related security incidents, 

where required by applicable law, contract, or regulation.

Employee training

We require annual training regarding the use of technology 

for employees, contractors, and consultants. It is also part of 

the onboarding process for all new employees, contractors, 

and consultants. This training covers protecting Fannie Mae 

confidential information and data, policy and standard 

controls, information security best practices, and identifying 

and reporting potential cyber threats.

For more information on risks related to cyber security and 

Fannie Mae’s management of these risks, see the cybersecurityrelated risk factor in “Risk Factors” and the “MD&A—Risk 

Management—Operational Risk Management—Cybersecurity 

Risk Management” and “Corporate Governance—Risk 

Management Oversight—Board’s Role in Cybersecurity Risk 

Oversight” sections of our 2021 Form 10-K (pp. 46–47, 161, 

184–185), 2020 Form 10-K (pp. 49–50, 164–165, 183–184), and 

2019 Form 10-K (pp. 37–38, 129, 148).

SASB FN-CB-230a.2 

© 2022 Fannie Mae 2021 ESG Report | 41

TABLE OF CONTENTS GOVERNANCE / DATA PRIVACY
Regulatory Engagement

As a federally chartered corporation and as a financial 

institution, Fannie Mae is subject to government regulation and 

oversight. FHFA, our primary regulator, regulates our safety and 

soundness and our fulfillment of our mission. FHFA also acts 

as our conservator. See our 2021 Form 10-K for a discussion of 

matters related to regulation, legislation, and conservatorship. 

As a government-sponsored enterprise, Fannie Mae is subject 

to special regulatory requirements to fulfill annual goals for 

supporting affordable housing and to set and achieve goals 

related to mortgage financing in underserved markets. 

The Financial Safety and Soundness Act of 1992, as amended, 

(the “GSE Act”) requires that FHFA establish affordable housing 

goals for Fannie Mae that a specified amount of mortgage loans 

we acquire meet standards relating to affordability, primarily 

measured by household income, or location. The GSE Act 

also establishes Duty to Serve requirements for Fannie Mae 

to facilitate a secondary market for mortgages on housing for 

very low-, low-, and moderate-income households in three 

underserved markets: manufactured housing, affordable 

housing preservation, and rural housing.40

Fannie Mae, in conservatorship, does not engage any 

registered lobbyists. The company also does not make 

political contributions.

Contributions to government and taxation

Fannie Mae contributes funding to the federal government in a 

number of ways, including:

• Treasury Capital Magnet Fund and HUD Housing Trust 

Fund. We are required by federal legislation to set aside 

in each fiscal year an amount equal to 4.2 basis points for 

each dollar of the unpaid principal balance of our total new 

business purchases and to pay this amount to the following 

funds: Treasury’s Capital Magnet Fund, which finances 

affordable housing, economic development activities, and 

community service facilities, and HUD’s Housing Trust Fund, 

which finances the production or preservation of affordable 

housing through the acquisition, new construction, 

reconstruction, and/or rehabilitation of non-luxury housing. 

We paid $603 million to these funds in 2021 based on our 

new business purchases in 2020. 

• Federal income taxes. Fannie Mae’s effective tax rate 

of 20.7% for 2021 is very close to the statutory federal 

corporate income tax rate of 21%. Fannie Mae is exempt by 

federal statute from state and local income taxes. For more 

information about Fannie Mae’s federal income taxes, refer 

to Note 9 — Income Taxes in the notes to the consolidated 

financial statements in our 2021 Form 10-K.

• Dividend payments to Treasury. Fannie Mae has 

made $181.4 billion in cumulative dividend payments 

to Treasury since entering conservatorship in 2008. 

This exceeds the $119.8 billion in cumulative amounts 

Fannie Mae has drawn from Treasury. Under the terms 

of the senior preferred stock purchase agreement with 

Treasury, dividend payments we make to Treasury do 

not offset our draws of funds from Treasury. Under the 

current dividend provisions of the senior preferred stock, 

we are not required to pay further dividends on the senior 

preferred stock until our net worth exceeds the amount of 

adjusted total capital necessary for us to meet the capital 

requirements and buffers under the Enterprise Regulatory 

Capital Framework issued to us by FHFA.

• TCCA fees. Pursuant to the Temporary Payroll Tax Cut 

Continuation Act of 2011, as amended by the Infrastructure 

Investment and Jobs Act of 2021 ("TCCA"), since April 2012 

we have collected 10 basis points in guaranty fees on the 

single-family residential mortgages delivered to us and 

remitted these fees to Treasury. In 2021, our TCCA payment 

to Treasury amounted to $3.0 billion.

• FHFA expenses. Under federal legislation, FHFA establishes 

an annual assessment to Fannie Mae for FHFA’s costs 

and expenses. In 2021, Fannie Mae recorded an annual 

assessment of $140 million for FHFA expenses.

40 For more information and to read our most recent Underserved Markets Plan document, please visit our website. 

© 2022 Fannie Mae 2021 ESG Report | 42

TABLE OF CONTENTS GOVERNANCE / REGULATORY ENGAGEMENT
Appendix

SECTION 6

Additional Resources

The resources provided below are included for readers seeking 

to learn more about some of the reports, policies, procedures, 

and practices referenced throughout this report. For more 

information on our environmental, social, and governance 

efforts, please visit Fannie Mae’s ESG website.

Reporting and data

Fannie Mae Third Quarter 2022 Form 10-Q

Fannie Mae 2021 Form 10-K

Fannie Mae 2020 Form 10-K

Fannie Mae 2019 Form 10-K

Annual Housing Activities Report (AHAR) 

and Annual Mortgage Report (AMR) 2021

Green Bond Impact Reporting

Data Dynamics

DUS Disclose

PoolTalk

Policies, practices, and plans

Single-Family Selling Guide

Single-Family Servicing Guide

Multifamily Selling and Servicing Guide

Sustainable Bond Framework

Single-Family Green Bond Framework

Multifamily Green Bond Framework

Employee Code of Conduct

Service Requirements for Contractors and Consultants

Code of Conduct for the Board of Directors

Equal Opportunity Statement & Anti-Retaliation

Online Privacy Notice for Fannie Mae

Duty to Serve Underserved Markets Plan 2022–2024

Equitable Housing Finance Plan

Mortgage product information

Single-Family Mortgage Products

Multifamily Mortgage Products and Specialty Financing

Pilot Activities

© 2022 Fannie Mae 2021 ESG Report | 43

TABLE OF CONTENTS APPENDIX / ADDITIONAL RESOURCES
Data Tables

Table Contents

Relevant SASB 

Indicator

1 Single-Family and Multifamily Loan Acquisitions FN-MF-000.B

2 Single-Family Housing Mortgage Acquisitions by Year, by Select Characteristics†

3 Multifamily Housing Mortgage Acquisitions by Year, by Select Characteristics†

4 Multifamily Social Bond Issuance FN-IB-410a.2

5 Certain Characteristics of Outstanding Single-Family Mortgage Loans FN-MF-270a.1

6 Single-Family Loan Modifications, Foreclosure Alternatives, and Foreclosures FN-MF-270a.2

7 Education & Counseling FN-CB-240a.4

8 Single-Family Mortgage Loan Acquisitions by Race or Ethnicity of Borrowers FN-MF-270b.1

9 Representation by Racial or Ethnic Group and Gender as a Percentage of Job Category FN-IB-330a.1

10 Board of Directors Representation by Racial or Ethnic Group and Gender†

11 Green Bond Issuance FN-IB-410a.2

12 Projected Green Bond Impacts†

13 Single-Family and Multifamily Loans Requiring Flood Insurance at Origination FN-MF-450a.1

†

 This table was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

Note on loan-related metrics

Loan-related metrics in this report’s data tables are based 

primarily on mortgage loans on Fannie Mae’s consolidated 

balance sheet, unless otherwise noted.41 References in this report 

to mortgage loans on Fannie Mae’s consolidated balance sheet 

refer to those in Fannie Mae consolidated trusts and those in 

Fannie Mae’s retained mortgage portfolio that are reported as 

Held for Investment or Held for Sale. The loan-related metrics 

exclude certain loan populations for which we do not have 

relevant data, amounting to $13.5 billion in unpaid principal 

balance (UPB) as of December 31, 2021; the largest of these is 

reverse mortgages, with $13.2 billion in UPB (less than 0.4% of 

the total UPB of single-family mortgage loans on Fannie Mae’s 

consolidated balance sheet as of December 31, 2021). 

Data tables in this report related to our Multifamily Business 

generally include a small population of off-balance sheet credit 

enhancements Fannie Mae has provided. Our climate-related 

data tables also include small off-balance sheet populations of 

long-term standby commitments, credit enhancements, and 

government-insured mortgage loans. 

Within this document, we report loan value in terms of unpaid 

principal balance, with no adjustments for fair value, cost basis 

adjustments, expected credit losses, or charge-offs. 

41 This data population is slightly different from our 2020 SASB Report. For details on this difference, please see our SASB Index in the Appendix of this report. 

© 2022 Fannie Mae 2021 ESG Report | 44

TABLE OF CONTENTS APPENDIX / DATA TABLES
TABLE 1. SINGLE-FAMILY AND MULTIFAMILY LOAN ACQUISITIONS

Number of Loans & Units Unpaid Principal Balance at Acquisition

For the Year Ended December 31, For the Year Ended December 31,

2021 2020 2019 2021 2020 2019

(Loans & Units in thousands) (Dollars in millions)

Single-Family: 4,812.3 4,856.6 2,293.2 $ 1,354,758 $ 1,358,851 $ 595,959

Home purchase loans 1,486.9 1,481.3 1,224.5 $ 451,392 $ 411,055 $ 312,659

Refinance loans 3,325.4 3,375.3 1,068.7 $ 903,366 $ 947,796 $ 283,300

Multifamily:

Loans 4.2 5.1 4.1 $ 69,460 $ 76,022 $ 70,185

Units financed42 622.5 744.2 651.4

42 Reflects new multifamily units financed by first liens; excludes second liens on multifamily units for which we had financed the first lien, as well as manufactured housing rentals. 

Numbers of units financed in 2021, 2020, and 2019 have been updated in this report from the numbers reported in the company’s prior Form 10-K filings to exclude previously 

included second liens and manufactured housing rentals. Second liens and manufactured housing rentals are included in loan count and unpaid principal balance. 

SASB FN-MF-000.B

© 2022 Fannie Mae 2021 ESG Report | 45

TABLE OF CONTENTS APPENDIX / DATA TABLES
TABLE 2. SINGLE-FAMILY HOUSING MORTGAGE ACQUISITIONS BY YEAR, BY SELECT CHARACTERISTICS†

Number of Loans Unpaid Principal Balance at Acquisition

For the Year Ended December 31, For the Year Ended December 31,

2021 2020 2019 2021 2020 2019

(Loans in thousands) (Dollars in millions)

Single-Family Owner-Occupied Loans 

(1–4 housing units)43

4,272.0 4,192.6 1,962.1 $ 1,212,242 $ 1,172,685 $ 513,628

Home Purchase Loans 1,279.2 1,235.2 1,018.7 $ 396,665 $ 347,644 $ 262,422

Income ≤ 50% of area median income (AMI) 96.0 92.5 69.0 $ 14,713 $ 13,151 $ 8,686

% of owner-occupied home purchase loans 7.5 % 7.5 % 6.8 % 3.7 % 3.8 % 3.3 %

Income > 50% to 60% AMI 80.3 81.1 64.6 $ 15,873 $ 14,737 $ 10,465

% of owner-occupied home purchase loans 6.3 % 6.6 % 6.3 % 4.0 % 4.2 % 4.0 %

Income > 60% to 80% AMI 194.0 192.5 156.9 $ 46,436 $ 41,728 $ 30,490

% of owner-occupied home purchase loans 15.2 % 15.6 % 15.4 % 11.7 % 12.0 % 11.6 %

Income > 80% to 100% AMI 189.0 180.7 151.6 $ 53,533 $ 45,952 $ 34,882

% of owner-occupied home purchase loans 14.8 % 14.6 % 14.9 % 13.5 % 13.2 % 13.3 %

Income > 100% to 120% AMI 165.2 156.9 128.4 $ 52,718 $ 44,917 $ 33,378

% of owner-occupied home purchase loans 12.9 % 12.7 % 12.6 % 13.3 % 12.9 % 12.7 %

Income >120% AMI 554.8 531.4 448.2 $ 213,391 $ 187,159 $ 144,520

% of owner-occupied home purchase loans 43.4 % 43.0 % 44.0 % 53.8 % 53.8 % 55.1 %

First-time homebuyers 703.4 639.9 523.8 $ 211,668 $ 172,420 $ 127,710

% of owner-occupied home purchase loans 55.0 % 51.8 % 51.4 % 53.4 % 49.6 % 48.7 %

†

 This table was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

43 Household income as a percentage of AMI in this table is as of loan origination. 

© 2022 Fannie Mae 2021 ESG Report | 46

TABLE OF CONTENTS APPENDIX / DATA TABLES
44 Multifamily figures in this table include both mortgage loans on our consolidated balance sheet and a small population of credit enhancements provided by Fannie Mae 

(off balance sheet).

45 Based on the date of loan acquisition by Fannie Mae.

46 Financing for rent-restricted properties and properties receiving other federal and local subsidies. Affordable housing acquisitions reported here include loans with 

properties for which 20% or more of the units financed are restricted to be affordable at or below 80% AMI. 

47 Affordable as defined by the individual program, e.g., LIHTC or HUD Section 8, based on rent and income restrictions reported at origination. This metric counts any units 

that are reported as restricted, with no excluded property types. 

48 Affordable as defined by FHFA in CFR 1282.19, based on rents reported at loan origination. Rents may change following loan origination. Reported rents are prior to any use 

of tenant-based vouchers. This metric excludes manufactured, senior, student, and co-op housing. Senior, student, and co-op property types are included in FHFA Housing 

Goals calculations, as reported in our Annual Housing Activities Report. 

49 In cases where multiple loans for MH communities are grouped into one structured transaction, they are counted here as a single loan. 

TABLE 3. MULTIFAMILY HOUSING MORTGAGE ACQUISITIONS BY YEAR, BY SELECT CHARACTERISTICS44 †

For the Year Ended December 31,45

2021 2020 2019

Multifamily Affordable Housing46

Number of loans for Multifamily Affordable Housing (thousands) 0.6 0.6 0.5

Value of loans for Multifamily Affordable Housing (UPB at acquisition, $ millions) $ 9,585 $ 7,946 $ 8,200

Number of units with rent and income restrictions considered affordable (thousands)47

Income ≤ 50% AMI 24.1 20.9 14.2

Income > 50% to 60% AMI 36.3 34.0 30.7

Income > 60% to 80% AMI 10.3 11.0 7.5

Income > 80% to 100% AMI 0.1 0.2 0.1

Income > 100% to 120% AMI 0.4 0.3 0.6

Income > 120% AMI * 0.1 0.1

Number of units with reported rents considered affordable (thousands)48

Income ≤ 50% AMI 80.4 91.5 72.9

Income > 50% to 60% AMI 103.5 129.0 101.9

Income > 60% to 80% AMI 193.9 211.9 194.9

Income > 80% to 100% AMI 100.5 104.0 111.4

Income > 100% to 120% AMI 37.7 39.4 43.9

Manufactured Housing (MH) Communities

Number of loans for MH Communities (thousands)49 0.3 0.4 0.3

Value of loans for MH Communities (UPB at acquisition, $ millions) $ 3,157 $ 5,243 $ 2,423

Number of MH pads financed (thousands) 66.2 106.5 55.3

* Represents value less than 50 units.

†

 This table was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

© 2022 Fannie Mae 2021 ESG Report | 47

TABLE OF CONTENTS APPENDIX / DATA TABLES
TABLE 4. MULTIFAMILY SOCIAL BOND ISSUANCE50

For the Year Ended December 31,

2021 2020 2019

Number of Social Bonds issued 829 — —

Number of loans (thousands)51 0.9 — —

Value of Social Bonds issued (UPB at issuance, $ millions) $ 10,456 $ — $ —

Total number of housing units financed by loans that back Social Bonds (thousands)† 134.6 — —

Number of units financed by loans that back Social Bonds with restricted affordability 

(thousands)52 †

Households ≤ 50% AMI† 24.1 — —

Households > 50% to 60% AMI† 35.4 — —

Households > 60% to 80% AMI† 15.5 — —

†

 This table was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

50 Fannie Mae released its first labeled Social Bonds in 2021. Fannie Mae also offers social re-securitizations within our GeMS program; see our website for issuance-level data 

and more information.

51 Within this table, loans are classified by the year in which they were securitized into a Social Bond, rather than the year Fannie Mae acquired them. 

52 Affordable as defined by the individual program, e.g., LIHTC or HUD Section 8, based on rent and income restrictions reported at origination. This metric counts any units 

that are reported as restricted, with no excluded property types. See our Sustainable Bond Framework for more information.

SASB FN-IB-410a.2

© 2022 Fannie Mae 2021 ESG Report | 48

TABLE OF CONTENTS APPENDIX / DATA TABLES
53 Loans are classified according to Classic FICO scores determined at the time of loan origination and reported to Fannie Mae by lenders. FICO is based upon the FICO associated 

with the loan origination and not attributed to individual borrowers in cases where there is more than one borrower. Numbers in table may not appear to sum due to rounding.

54 Fannie Mae has defined management criteria responsive to SASB FN-MF-270a.1. For more information, please see Note 1: Basis of Presentation in the SASB Index of the Appendix. 

55 Hybrid ARMs are defined per the SASB Standards as mortgages with interest rate resets, or initial fixed-rate periods, of less than five years. Option ARMs, as defined by the SASB 

Standards, are any ARM loan with terms that allow for negative amortization or interest-only payments. Fannie Mae no longer acquires loans with negative amortization or interestonly payment options. ARMs with a negative amortization feature have not been acquired since 2007. ARMs with interest-only payment options have not been acquired since 2014. 

56 The FICO Not Available category includes loans using manual underwriting for borrowers without a credit score, as permitted by the Selling Guide. Additionally, this category 

includes loans acquired under negotiated exceptions for nonprofit entity borrowers who may rent the property on affordable rental terms to individuals, as only individual 

borrowers have FICO scores. Finally, this category may also include loans with data outside the expected range of FICO scores, attributable to data entry issues.

57 We define “higher rate” consistent with the meaning of higher-priced mortgage loan as defined by Regulation Z (12 CFR 1026), implementing the Truth in Lending Act, as 

amended, and as reported by lenders as of origination. For loan applications taken on or after October 1, 2009, and for loans closed on or after January 1, 2010, (regardless of 

application date), loans with a spread between annual percentage rate (APR) and average prime offer rate (APOR) at rate lock-in date greater than or equal to 150 bps for first-lien 

loans or 350 bps for junior-lien loans are classified as higher rate. Prior to these dates, mortgages with a spread between APR and comparable U.S. Treasury yields at rate lock-in 

date greater than or equal to 300 bps for first-lien loans or 500 bps for junior-lien loans are classified as higher rate. Loans are classified based on their original terms. Subsequent 

modifications may have changed the APR or adjusted other relevant terms of the loans, which are not reflected in this table. As of year-end 2021, 2020, and 2019, Fannie Mae had 

modified 41,584; 39,796; and 34,469, respectively, of the loans classified here as higher rate (figures not subject to Deloitte & Touche LLP’s review). These loans may not be higher rate 

as of the periods displayed, based on modified terms.

TABLE 5. CERTAIN CHARACTERISTICS OF OUTSTANDING SINGLE-FAMILY MORTGAGE LOANS53

Number of Loans Unpaid Principal Balance

As of December 31, As of December 31,

2021 2020 2019 2021 2020 2019

(Loans in thousands) (Dollars in millions)

Hybrid or Option ARM55 48.2 62.0 77.3 $ 5,366 $ 7,549 $ 10,242

FICO ≤ 660 5.2 6.5 7.9 $ 463 $ 636 $ 821

As a % of total outstanding single-family 

mortgage loans

* * 0.1 % * * *

FICO > 660 40.7 52.5 65.8 $ 4,834 $ 6,821 $ 9,301

As a % of total outstanding single-family 

mortgage loans

0.2 % 0.3 % 0.4 % 0.1 % 0.2 % 0.3 %

FICO not available56 2.3 2.9 3.6 $ 68 $ 92 $ 120

As a % of total outstanding single-family 

mortgage loans

* * * * * *

Higher Rate57 403.0 437.5 447.9 $ 68,072 $ 66,633 $ 64,045

FICO ≤ 660 82.5 100.1 110.1 $ 11,733 $ 14,288 $ 15,825

As a % of total outstanding single-family 

mortgage loans

0.5 % 0.6 % 0.7 % 0.3 % 0.5 % 0.5 %

FICO > 660 320.0 336.8 337.2 $ 56,288 $ 52,285 $ 48,153

As a % of total outstanding single-family 

mortgage loans

1.8 % 2.0 % 2.0 % 1.6 % 1.6 % 1.6 %

FICO not available 0.5 0.6 0.6 $ 52 $ 60 $ 67

As a % of total outstanding single-family 

mortgage loans

* * * * * *

* Represents a value of less than 0.05%

MGMT FN-MF-270a.154

© 2022 Fannie Mae 2021 ESG Report | 49

TABLE OF CONTENTS APPENDIX / DATA TABLES
TABLE 5. CERTAIN CHARACTERISTICS OF OUTSTANDING SINGLE-FAMILY MORTGAGE LOANS (CONT’D)

Number of Loans Unpaid Principal Balance

As of December 31, As of December 31,

2021 2020 2019 2021 2020 2019

(Loans in thousands) (Dollars in millions)

Total Outstanding Single-Family 

Mortgage Loans

17,512.1 17,293.5 16,977.2 $ 3,482,509 $ 3,200,140 $ 2,950,792

FICO ≤ 660 1,100.8 1,233.0 1,353.7 $ 157,123 $ 167,251 $ 183,582

As a % of total outstanding single-family 

mortgage loans

6.3 % 7.1 % 8.0 % 4.5 % 5.2 % 6.2 %

FICO > 660 16,379.6 16,019.4 15,573.3 $ 3,323,827 $ 3,030,934 $ 2,764,722

As a % of total outstanding single-family 

mortgage loans

93.5 % 92.6 % 91.7 % 95.4 % 94.7 % 93.7 %

FICO not available 31.7 41.2 50.2 $ 1,559 $ 1,956 $ 2,488

As a % of total outstanding single-family 

mortgage loans

0.2 % 0.2 % 0.3 % * 0.1 % 0.1 %

Prepayment penalty: 

Prior to 2013, we purchased a small population of loans with prepayment penalties as part of negotiated transactions. In 2013, we announced that loans 

with prepayment penalties are no longer eligible for purchase in connection with the Ability-to-Repay/Qualified Mortgage Rule provisions published by the 

Consumer Financial Protection Bureau. Any loan previously acquired with a prepayment penalty has seasoned beyond the effective date of the penalty. 

As a result, we exclude these loans from our reporting of this metric.

* Represents a value of less than 0.05%

MGMT FN-MF-270a.1

© 2022 Fannie Mae 2021 ESG Report | 50

TABLE OF CONTENTS APPENDIX / DATA TABLES
58 Loans are classified according to Classic FICO scores determined at the time of loan origination and reported to Fannie Mae by lenders. FICO is based upon the FICO associated 

with the loan origination and not attributed to individual borrowers in cases where there is more than one borrower. FICO score at loan origination does not impact borrower 

eligibility determinations for loss mitigation or foreclosure outcomes. Rather, these events are assessed in accordance with our Servicing Guide and applicable law. Numbers in 

table may not appear to sum due to rounding.

59 The FICO Not Available category includes loans using manual underwriting for borrowers without a credit score, as permitted by the Selling Guide. Additionally, this category 

includes loans acquired under negotiated exceptions for nonprofit entity borrowers who may rent the property on affordable rental terms to individuals, as only individual 

borrowers have FICO scores. Finally, this category may also include loans with data outside the expected range of FICO scores, attributable to data entry issues. 

60 The payment deferral workout option allows the borrower to defer past-due payments, without interest, to the maturity date or earlier payoff of the mortgage. In our 2020 SASB 

Report, payment deferrals were combined with the “modifications” data. 

TABLE 6. SINGLE-FAMILY LOAN MODIFICATIONS, FORECLOSURE ALTERNATIVES, AND FORECLOSURES58

Number of Loans Unpaid Principal Balance

For the Year Ended December 31, For the Year Ended December 31,

2021 2020 2019 2021 2020 2019

(Loans in thousands) (Dollars in millions)

Non-Liquidation Workouts

Repayment Plans 3.5 6.6 5.4 $ 599 $ 1,102 $ 748

FICO ≤ 660 0.7 2.0 2.5 96 253 325

FICO > 660 2.8 4.6 2.9 502 846 419

FICO not available59 * * 0.1 1 3 3

Payment Deferrals60 297.4 259.1 — 62,060 55,988 —

FICO ≤ 660 56.8 37.2 — 9,434 6,471 —

FICO > 660 239.9 221.5 — 52,577 49,482 —

FICO not available 0.7 0.4 — 49 34 —

Modifications 40.3 30.8 46.6 8,432 5,347 7,699

FICO ≤ 660 10.8 11.4 18.9 1,881 1,777 2,801

FICO > 660 29.4 19.3 27.8 6,544 3,560 4,898

FICO not available 0.1 0.1 ** 7 9 **

Total Modifications, Deferrals, 

and Repayment Plans

341.2 296.6 52.1 $ 71,091 $ 62,436 $ 8,447 

* Represents a value of less than 50 loans or less than $500,000 in UPB.

** Data not available.

SASB FN-MF-270a.2

© 2022 Fannie Mae 2021 ESG Report | 51

TABLE OF CONTENTS APPENDIX / DATA TABLES
61 Foreclosures include properties that are sold to third parties at foreclosure and those that Fannie Mae acquires as REO. Foreclosures data in the 2020 SASB Report did not 

include third-party sales. Foreclosures reported here include only completed foreclosures and do not include loans referred to foreclosure or in the process of foreclosure. 

There were approximately 20,000 loans in the foreclosure process as of December 31, 2021 (figure not subject to Deloitte & Touche LLP’s review).

TABLE 6. SINGLE-FAMILY LOAN MODIFICATIONS, FORECLOSURE ALTERNATIVES, AND FORECLOSURES (CONT’D)

Number of Loans Unpaid Principal Balance

For the Year Ended December 31, For the Year Ended December 31,

2021 2020 2019 2021 2020 2019

(Loans in thousands) (Dollars in millions)

Settled Liquidation Workouts

Pre-Foreclosure Sales 1.2 2.1 2.8 $ 218 $ 413 $ 544

FICO ≤ 660 0.3 0.6 0.8 62 117 147

FICO > 660 0.8 1.5 2.1 156 296 397

FICO not available * ** ** * ** **

Deed-in-Lieu of Foreclosure 0.4 0.6 1.1 48 83 160

FICO ≤ 660 0.1 0.1 0.3 11 17 40

FICO > 660 0.3 0.5 0.9 38 66 120

FICO not available * ** ** * ** **

Total Pre-Foreclosure Sales and 

Deeds-in-Lieu of Foreclosure

1.5 2.7 4.0 $ 267 $ 496 $ 704

Foreclosures61 6.2 7.2 21.3 641 837 2,707

FICO ≤ 660 2.0 2.3 7.0 195 258 845

FICO > 660 4.1 4.8 14.1 444 576 1,851

FICO not available 0.1 0.1 0.3 2 4 12

* Represents a value of less than 50 loans or less than $500,000 in UPB.

** Data not available.

SASB FN-MF-270a.2

© 2022 Fannie Mae 2021 ESG Report | 52

TABLE OF CONTENTS APPENDIX / DATA TABLES
TABLE 7. EDUCATION & COUNSELING62

For the Year Ended December 31,

2021 2020 2019

(Thousands)

Number of loans acquired for which Fannie Mae required pre-purchase homebuyer education63 211.5 199.0 164.8

Number of sessions of housing counseling provided to Fannie Mae borrowers and 

renters via nonprofit partners64†

23 15 8

†

 Number of sessions of housing counseling was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form 

of assurance on such information.

62 Fannie Mae requires programs that are aligned with National Industry Standards for Homeownership Education and Counseling or the HUD Counseling Program, or provided 

by a HUD-approved counseling agency. For more information, see Fannie Mae’s Single-Family Selling Guide section B2-2-06. 

63 For certain Fannie Mae loans, at least one borrower on a loan must complete homeownership education prior to loan closing: if all borrowers on the loan are relying solely on 

nontraditional credit to qualify, regardless of loan product or first-time homebuyer status; HomeReady and HFA Preferred purchase transactions when all occupying borrowers 

are first-time homebuyers; or purchase transactions with loan-to-value (LTV), combined LTV, or home equity combined LTV ratios greater than 95% when all borrowers are firsttime homebuyers. Qualified providers must be independent of the lender, with homeownership education content that is aligned with National Industry Standards or is offered 

by a housing counseling agency approved by HUD. HomeView can be used to satisfy homeownership education requirements. 

64 Counseling sessions reported are for loans held by Fannie Mae or one of its consolidated trusts. Sessions include those provided through the Disaster Response Network and 

additional partners for borrowers and, beginning in March 2020, renters experiencing hardship. Individual borrowers and renters may account for more than one session.

SASB FN-CB-240a.4

© 2022 Fannie Mae 2021 ESG Report | 53

TABLE OF CONTENTS APPENDIX / DATA TABLES
65 We operate in the secondary mortgage market, primarily working with lenders and servicers. We do not originate loans or lend money directly to consumers in the primary 

mortgage market. Fannie Mae requires lenders and servicers of loans to comply with applicable laws and regulations, including the Fair Housing Act, Equal Credit Opportunity 

Act, and related anti-discrimination regulations. Fannie Mae conducts its underwriting analysis uniformly and without regard to race, gender, or other prohibited factors in our 

automated underwriting system, Desktop Underwriter (DU). Numbers in table may not appear to sum due to rounding.

Borrowers are asked to report both race and ethnicity on their loan application. Borrower categories for applications are based on whether any of the four possible borrowers 

identify as Hispanic or Latino, or a race other than white. Individual race and ethnicity categories are not mutually exclusive and do not sum to 100%. For example, if there are 

two borrowers on a mortgage, one of whom identifies as Black and one as Asian, the loan information would be counted as part of both Black and Asian categories. Similarly, 

if a borrower identifies with more than one race or ethnicity, the borrower will be included in each group, with the exception of borrowers who identify as non-Hispanic white.

Loans are classified in this table according to Classic FICO scores determined at the time of loan origination and reported to Fannie Mae by lenders. FICO is based upon the 

FICO associated with the loan origination and not attributed to individual borrowers in cases where there is more than one borrower. The FICO Not Available category includes 

loans using manual underwriting for borrowers without a credit score, as permitted by the Selling Guide. Additionally, this category includes loans acquired under negotiated 

exceptions for nonprofit entity borrowers who may rent the property on affordable rental terms to individuals, as only individual borrowers have FICO scores. Finally, this 

category may also include loans with data outside the expected range of FICO scores, attributable to data entry issues.

66 The weighted average original loan-to-value ratio is calculated based upon the race and ethnicity category for each borrower for the applicable loan, so data for a single loan 

may appear in multiple rows.

TABLE 8. SINGLE-FAMILY MORTGAGE LOAN ACQUISITIONS BY RACE OR ETHNICITY OF BORROWER(S) 65

Number of Loans Unpaid Principal Balance at 

Acquisition

Weighted Average Original 

LTV Ratio66

For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31,

2021 2020 2019 2021 2020 2019 2021 2020 2019

(Loans in thousands) (Dollars in millions)

Borrower Race or Ethnicity:

American Indian or 

Alaskan Native 34.6 29.1 13.9 $ 9,293 $ 7,751 $ 3,456 71.9 % 73.7 % 77.6 %

FICO ≤ 660 1.9 1.2 1.0 461 261 209 70.9 73.0 75.1

FICO > 660 32.7 28.0 12.9 8,831 7,489 3,246 72.0 73.7 77.8

FICO not available * * * 1 * 1 77.1 70.7 80.0

Asian 451.5 438.5 179.4 162,516 153,845 58,698 66.9 67.7 73.9

FICO ≤ 660 7.7 5.3 4.7 2,501 1,601 1,356 70.4 71.5 73.9

FICO > 660 443.8 433.1 174.6 160,002 152,234 57,326 66.8 67.6 73.9

FICO not available * * 0.1 13 10 17 76.7 74.1 75.1

Black or African American 218.2 172.5 100.7 57,679 45,280 24,290 76.0 78.0 81.4

FICO ≤ 660 16.3 9.7 9.7 3,951 2,287 2,042 73.1 76.1 78.0

FICO > 660 201.8 162.8 91.0 53,721 42,986 22,242 76.2 78.0 81.7

FICO not available * * * 7 7 5 78.7 78.0 78.7

Hispanic or Latino 541.8 481.9 249.5 153,216 134,201 64,269 73.4 74.6 79.0

FICO ≤ 660 28.9 19.1 17.4 7,466 4,612 3,908 71.0 73.3 76.3

FICO > 660 512.8 462.7 232.0 145,724 129,566 60,333 73.5 74.7 79.1

FICO not available 0.1 0.1 0.1 26 23 28 76.7 78.0 76.5

* Represents a value of less than 50 loans or less than $500,000 in UPB.

SASB FN-MF-270b.1

© 2022 Fannie Mae 2021 ESG Report | 54

TABLE OF CONTENTS APPENDIX / DATA TABLES
67 This category consists of borrowers who are not non-Hispanic white. It may not equal the total of the relevant categories in this table since borrowers who fall under multiple 

racial/ethnic categories would only appear once in this subtotal. 

68 This category consists of mortgages where borrower race and/or ethnicity information was not provided at loan origination.

TABLE 8. SINGLE-FAMILY MORTGAGE LOAN ACQUISITIONS BY RACE OR ETHNICITY OF BORROWER(S) (CONT’D)

Number of Loans Unpaid Principal Balance at 

Acquisition

Weighted Average Original 

LTV Ratio

For the Year Ended December 31, For the Year Ended December 31, For the Year Ended December 31,

2021 2020 2019 2021 2020 2019 2021 2020 2019

(Loans in thousands) (Dollars in millions)

Native Hawaiian or 

Other Pacific Islander 18.6 19.2 9.5 $ 6,151 $ 6,249 $ 2,921 70.3 % 71.4 % 76.1 %

FICO ≤ 660 1.0 0.6 0.6 312 187 163 69.9 69.6 72.7

FICO > 660 17.6 18.6 9.0 5,838 6,061 2,757 70.3 71.5 76.3

FICO not available * * * 1 1 1 70.9 75.9 64.8

White — Non-Hispanic 

or Latino 2,949.6 3,157.8 1,501.5 791,086 848,658 377,582 69.2 71.5 76.3

FICO ≤ 660 97.6 70.3 59.1 22,638 15,709 12,292 70.1 72.2 74.2

FICO > 660 2,851.1 3,086.7 1,441.6 768,262 832,803 365,128 69.2 71.5 76.3

FICO not available 0.9 0.8 0.9 186 146 161 75.1 75.9 75.4

All Minority 

Borrowers67 1,203.6 1,089.5 529.9 369,614 331,191 146,898 70.9 71.8 77.3

FICO ≤ 660 52.5 33.9 31.8 13,769 8,442 7,288 71.3 73.6 76.2

FICO > 660 1,150.8 1,055.4 497.9 355,798 322,709 139,559 70.9 71.8 77.3

FICO not available 0.2 0.2 0.2 48 40 51 76.9 76.8 76.0

Information Not 

Provided68 659.1 609.3 261.8 194,060 179,009 71,481 66.9 69.4 74.6

FICO ≤ 660 24.2 15.0 12.3 6,119 3,665 2,807 67.8 69.5 71.4

FICO > 660 634.8 594.2 249.4 187,913 175,327 68,648 66.9 69.4 74.8

FICO not available 0.1 0.1 0.1 29 17 27 70.8 70.9 76.4

* Represents a value of less than 50 loans or less than $500,000 in UPB.

SASB FN-MF-270b.1

© 2022 Fannie Mae 2021 ESG Report | 55

TABLE OF CONTENTS APPENDIX / DATA TABLES
TABLE 9. REPRESENTATION BY RACIAL OR ETHNIC GROUPS AND GENDER AS A PERCENTAGE OF JOB CATEGORY69

Executive 

Management

Non-Executive 

Management

Professionals All Other 

Employees

All Job 

Categories

As of the Final Pay 

Period of:

As of the Final Pay 

Period of:

As of the Final Pay 

Period of:

As of the Final Pay 

Period of:

As of the Final Pay 

Period of:

2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019

Racial or 

Ethnic Group:

American Indian or 

Alaskan Native — % — % — % 0.2 % 0.3 % 0.6 % 0.2 % 0.2 % 0.2 % — % — % — % 0.2 % 0.2 % 0.3 %

Women — — — 0.1 0.1 0.1 0.1 * 0.1 — — — 0.1 0.1 0.1

Men — — — 0.1 0.2 0.5 0.1 0.2 0.1 — — — 0.1 0.2 0.2

Asian 5.6 2.9 3.0 30.1 28.9 27.3 38.7 38.0 37.2 3.5 9.0 7.3 36.5 35.7 34.8

Women 2.8 2.9 3.0 9.7 8.9 8.6 16.4 16.3 16.4 1.2 6.0 5.5 14.8 14.7 14.8

Men 2.8 — — 20.4 20.0 18.7 22.3 21.7 20.8 2.4 3.0 1.8 21.6 21.0 20.0

Black or African 

American 13.9 14.7 9.1 8.2 8.5 8.8 12.9 13.6 14.1 54.1 56.0 56.4 12.5 13.2 13.8

Women 5.6 5.9 3.0 4.5 5.0 5.3 7.7 8.0 8.3 50.6 52.0 50.9 7.6 8.0 8.4

Men 8.3 8.8 6.1 3.7 3.5 3.5 5.2 5.6 5.8 3.5 4.0 5.5 4.9 5.2 5.4

Hispanic or Latino 2.8 — 6.1 3.9 4.3 4.1 6.1 5.7 5.6 14.1 10.0 9.1 5.8 5.5 5.4

Women 2.8 — — 1.7 1.9 2.0 2.5 2.4 2.5 12.9 9.0 8.2 2.5 2.4 2.5

Men — — 6.1 2.2 2.4 2.1 3.6 3.3 3.1 1.2 1.0 0.9 3.3 3.1 2.9

Native Hawaiian or 

Pacific Islander — — — 0.3 0.3 0.2 0.2 0.2 0.3 — — — 0.2 0.2 0.2

Women — — — 0.1 0.1 0.1 * * 0.1 * — — — 0.1 0.1

Men — — — 0.2 0.2 0.1 0.2 0.2 0.2 — — — 0.2 0.2 0.2

* Represents less than 0.05% of employees by job category.

SASB FN-IB-330a.1

69 This table counts employees as of the last day of the last pay period of the calendar year: December 18 in 2021, December 31 in 2020, and December 20 in 2019. Data may be 

rounded up or down by up to 0.1 percentage point to ensure column totals equal 100% for each job category by year. Where an employee has chosen not to self-identify their race/

ethnicity, Fannie Mae determines this information by visual survey and/or other available information to complete of certain mandatory government reports, such as EEO-1.

Fannie Mae aligns its workforce to EEO-1 job categories as defined by the EEO-1 Component 1 Job Classification Guide. Those included in the Executive Management category 

include those aligned with the EEO-1 category Executive/Senior Level Officials & Managers and are Fannie Mae leaders in SVP, EVP, President, or CEO roles (historically ~30–40 

employees). As a result, this group is affected more significantly by small fluctuations in workforce demographics (i.e., individuals who leave and join within specific racial/

ethnic groups). Those included in the Non-Executive Management category include those aligned with the EEO-1 category First/Mid-Level Officials & Managers; those in the 

Professionals category include those aligned with the EEO-1 category Professionals; and those in the All Other Employees category include those aligned with the EEO-1 

categories Technicians, Sales Workers, Administrative Support, Craft Workers, Operatives, Laborers & Helpers, and Service Workers. Demographic shifts across job categories 

may be attributed to changes in business initiatives and demand for specific roles and skills (i.e., technical, cloud, digital) and their requisite supply in the talent market. 

Fannie Mae has no employees outside of the United States. 

© 2022 Fannie Mae 2021 ESG Report | 56

TABLE OF CONTENTS APPENDIX / DATA TABLES
TABLE 9. REPRESENTATION BY RACIAL OR ETHNIC GROUPS AND GENDER AS A PERCENTAGE OF JOB CATEGORY (CONT’D)

Executive 

Management

Non-Executive 

Management

Professionals All Other 

Employees

All Job 

Categories

As of the Final Pay 

Period of:

As of the Final Pay 

Period of:

As of the Final Pay 

Period of:

As of the Final Pay 

Period of:

As of the Final Pay 

Period of:

2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019 2021 2020 2019

Racial or 

Ethnic Group:

White NonHispanic or Latino 77.8 % 79.5 % 78.8 % 55.2 % 56.1 % 57.1 % 39.3 % 40.4 % 40.3 % 25.9 % 23.0 % 23.6 % 42.5 % 43.3 % 43.3 %

Women 16.7 20.6 18.2 22.7 22.4 23.5 16.7 17.0 16.9 21.2 20.0 21.8 17.9 18.0 18.2

Men 61.1 58.9 60.6 32.5 33.7 33.6 22.7 23.4 23.4 4.7 3.0 1.8 24.6 25.3 25.2

Two or More Races — 2.9 3.0 2.0 1.6 1.9 2.5 1.9 2.3 2.4 2.0 3.6 2.4 1.9 2.2

Women — — — 0.9 0.7 0.7 1.2 0.9 1.1 2.4 2.0 3.6 1.2 0.9 1.1

Men — 2.9 3.0 1.1 0.9 1.2 1.3 1.0 1.2 — — — 1.3 1.0 1.2

Total Number 

of Employees 36 34 33 1,444 1,443 1,381 5,844 6,074 5,985 85 100 110 7,409 7,651 7,509

Women 10 10 8 574 564 556 2,605 2,715 2,721 75 89 99 3,264 3,378 3,384

Men 26 24 25 870 879 825 3,239 3,359 3,264 10 11 11 4,145 4,273 4,125

SASB FN-IB-330a.1

© 2022 Fannie Mae 2021 ESG Report | 57

TABLE OF CONTENTS APPENDIX / DATA TABLES
70 Data for each year is provided as of the filing date of the company’s Form 10-K for the applicable year, which was February 15, 2022, for the 2021 Form 10-K, February 12, 2021, 

for the 2020 Form 10-K and February 13, 2020, for the 2019 Form 10-K. Information in 2021 column does not reflect changes in Board membership that occurred following the 

company’s 2021 Form 10-K filing; these changes are described in Current Reports on Form 8-K filed by Fannie Mae on April 8, 2022, and September 29, 2022. 

TABLE 10. BOARD OF DIRECTORS REPRESENTATION BY RACIAL OR ETHNIC GROUP AND GENDER70†

As of the Form 10-K Filing Date 

for Reporting Covering

2021 2020 2019

Number of Board Members

By Racial or Ethnic Group:

American Indian or Alaskan Native — — —

Asian — — —

Black or African American 3 2 2

Hispanic or Latino 1 1 1

Native Hawaiian or Pacific Islander — — —

White 8 8 10

By Gender

Women 5 5 5

Men 7 6 8

†

 This table was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

© 2022 Fannie Mae 2021 ESG Report | 58

TABLE OF CONTENTS APPENDIX / DATA TABLES
71 Total rows do not count Multifamily Green GeMS, since these are resecuritizations. Numbers in table may not appear to sum due to rounding.

72 Within this table, loans are classified by the year in which they are securitized into a Green Bond, rather than the year Fannie Mae acquired them. 

TABLE 11. GREEN BOND ISSUANCE71

For the Year Ended December 31,

2021 2020 2019

Number of Green Bonds 550 569 991

Multifamily Green Bonds 515 557 991

Single-Family Green Bonds 35 12 — 

Multifamily Green GeMS 3 4 3

Number of Loans (thousands)72 2.1 0.9 1.0

Multifamily Green Bonds 0.5 0.6 1.0

Single-Family Green Bonds 1.5 0.3 —

Value of Green Bonds Issued (UPB at Issuance, $ millions) $ 13,980 $ 13,093 $ 22,780

Multifamily Green Bonds 13,467 12,999 22,780

Single-Family Green Bonds 513 94 —

Multifamily Green GeMS 2,391 1,938 2,910

Number of Units (thousands)† 97.2 102.6 213.9

Multifamily Green Bonds† 95.6 102.3 213.9

Single-Family Green Bonds† 1.5 0.3 — 

†

 The number of units financed by Green Bonds was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form 

of assurance on such information.

SASB FN-IB-410a.2

© 2022 Fannie Mae 2021 ESG Report | 59

TABLE OF CONTENTS APPENDIX / DATA TABLES
73 This table presents single-year projected impacts for the loans underlying Green Bonds issued in the years indicated. For a description of our methodology for estimating 

the positive environmental impact of the loans backing our Green Bonds, see the impact methodology on our Green Bonds webpage. 

74 Multifamily Green Bonds only.

75 Estimated cost savings for a one-year period.

76 Multifamily Green Rewards loans only.

77 Single-Family Green Bonds only.

TABLE 12. PROJECTED GREEN BOND IMPACTS73†

For the Year Ended December 31,

2021 2020 2019

Projected Energy Saved (kBtu in millions) 1,459 1,639 3,566

Multifamily Green Bonds 1,422 1,631 3,566

Single-Family Green Bonds 37 8 — 

Projected Water Saved (Gallons in millions)74 473 807 1,799

Projected Greenhouse Gas Emissions Prevented (mtCO2e in thousands) 84.0 105.0 241.2

Multifamily Green Bonds 82.3 104.6 241.2

Single-Family Green Bonds 1.7 0.4 —

Projected Utility Cost Savings per Household75

Multifamily tenants76 $ 219 $ 235 $ 254 

Single-family homeowners77 $ 264 $ 269 $ —

†

 This table was not subject to Deloitte & Touche LLP’s review and, accordingly, Deloitte & Touche LLP does not express a conclusion or any form of assurance on such information.

© 2022 Fannie Mae 2021 ESG Report | 60

TABLE OF CONTENTS APPENDIX / DATA TABLES
78 Single-Family and Multifamily categories encompass properties requiring flood insurance, per Fannie Mae Selling Guides and federal law (National Flood Insurance Act of 1968, 

as amended). Furthermore, federal law creates a special category of land located in coastal areas. Irrespective of whether such areas are also in the 100-year flood plain, Fannie 

Mae requires flood insurance for all residences located in these areas. 

Loan and REO data reflect flood zones as at loan origination as reported by lenders. Flood maps may change over time. Servicers are responsible for ensuring borrowers remain 

in compliance with flood insurance requirements. Please see the Mitigating potential future climate-related financial losses section of our Climate Risk & Resilience chapter 

for more information on our flood insurance requirements. 

Loan data in this table includes Fannie Mae’s retained mortgage portfolio (including loans held for sale), loans underlying MBS in consolidated trusts, and some off-balance 

sheet items, such as long-term standby commitments, credit enhancements, and government-insured mortgages.

Numbers in table may not appear to sum due to rounding. 

79 For multifamily loans, one loan can cover multiple properties. If one property under that loan requires flood insurance, the unpaid principal balance value in this table reflects 

only the value allocated to the affected property, not the entire loan. 

TABLE 13. SINGLE-FAMILY AND MULTIFAMILY LOANS REQUIRING FLOOD INSURANCE AT ORIGINATION78

Number of Loans Unpaid Principal Balance

As of December 31, As of December 31, 

2021 2020 2019 2021 2020 2019

(Loans in thousands) (Dollars in millions)

Single-Family Loans

Flood-insured loans 562.9 585.4 600.4 $ 109,252 $ 105,117 $ 101,713

Total single-family loans 17,534.4 17,320.0 17,007.9 3,484,276 3,202,619 2,953,719

Flood insured as % of single-family total 3.2 % 3.4 % 3.5 % 3.1 % 3.3 % 3.4 %

Multifamily Loans79

Flood-insured loans 2.0 2.0 1.8 $ 34,927 $ 34,205 $ 31,981

Total multifamily loans 28.9 28.7 28.0 413,171 384,656 338,842

Flood insured as % of multifamily total 6.8 % 6.9 % 6.6 % 8.5 % 8.9 % 9.4 %

Number of Properties Carrying Value

As of December 31, As of December 31, 

2021 2020 2019 2021 2020 2019

(Properties in thousands) (Dollars in millions)

Single-Family REO

Properties in flood zones 0.3 0.4 0.8 $ 46 $ 56 $ 124

Total single-family REO properties 7.0 7.7 16.9 949 1,065 2,185

In flood zones as % of single-family REO total 4.5 % 4.7 % 4.9 % 4.9 % 5.3 % 5.7 %

Multifamily REO

Properties in flood zones * * * $ 13 $ 14 $ 3

Total multifamily REO properties * * * 302 114 72

In flood zones as % of multifamily REO total 6.5 % 14.3 % 8.3 % 4.3 % 12.6 % 3.9 %

* Represents a value of less than 50 properties. There were 2, 2, and 1 multifamily REO properties in flood zones in 2021, 2020, and 2019, respectively. There were 31, 14, and 12 total 

multifamily REO properties in 2021, 2020, and 2019, respectively.

SASB FN-MF-450a.1

© 2022 Fannie Mae 2021 ESG Report | 61

TABLE OF CONTENTS APPENDIX / DATA TABLES
Assurance Report

INDEPENDENT ACCOUNTANT’S REVIEW REPORT

We have reviewed management of Fannie Mae’s (in 

conservatorship) (the “Company”) assertion that the specified 

information included in Note 1: Basis of Presentation (“Note 1”) 

within the accompanying Fannie Mae 2021 Enterprise 

Environmental, Social and Governance (ESG) Report (“ESG 

Report”) as of or for the years ended December 31, 2021, 

December 31, 2020 and December 31, 2019 are presented in 

accordance with the criteria set forth in Note 1 (the “criteria”). 

The Company’s management is responsible for its assertion. 

Our responsibility is to express a conclusion on management’s 

assertion based on our review. 

Our review was conducted in accordance with attestation 

standards established by the American Institute of Certified Public 

Accountants (AICPA) in AT-C section 105, Concepts Common 

to All Attestation Engagements, and AT-C section 210, Review 

Engagements. Those standards require that we plan and perform 

the review to obtain limited assurance about whether any material 

modifications should be made to management’s assertion in 

order for it to be fairly stated. The procedures performed in a 

review vary in nature and timing from, and are substantially less 

in extent than, an examination, the objective of which is to obtain 

reasonable assurance about whether management’s assertion 

is fairly stated, in all material respects, in order to express an 

opinion. Accordingly, we do not express such an opinion. Because 

of the limited nature of the engagement, the level of assurance 

obtained in a review is substantially lower than the assurance that 

would have been obtained had an examination been performed. 

We believe that the review evidence obtained is sufficient and 

appropriate to provide a reasonable basis for our conclusion.

We are required to be independent and to meet our other ethical 

responsibilities in accordance with the Code of Professional 

Conduct issued by the AICPA. We applied the Statements 

on Quality Control Standards established by the AICPA and, 

accordingly, maintain a comprehensive system of quality control.

The procedures we performed were based on our professional 

judgment. In performing our review, we conducted inquiries 

and performed analytical procedures. For a selection of the 

specified information, we performed tests of mathematical 

accuracy of computations, compared the specified information 

to underlying records, or observed the data collection process in 

regard to the accuracy of the data in the specified information. 

The preparation of the specified information referenced in Note 

1 requires management to establish and interpret the criteria, 

make determinations as to the relevancy of information to be 

included, and make estimates and assumptions that affect the 

reported information. Measurement of certain metrics could 

include estimates and assumptions that are subject to inherent 

measurement uncertainty. Obtaining sufficient, appropriate 

review evidence to support our conclusion does not reduce the 

inherent uncertainty in the amounts and metrics. The selection by 

management of different but acceptable measurement methods, 

input data, or assumptions, may have resulted in materially 

different amounts or specified information being reported. 

Our review was limited to the specified information in Note 1 

as of or for the years ended December 31, 2021, 2020 and 2019. 

All other information including information relating to forward 

looking statements, goals, and progress against goals, was not 

subject to our review and, accordingly, we do not express a 

conclusion or any form of assurance on such information. 

As discussed in Note 1, in 2021, Fannie Mae has changed the 

reporting from the 2020 SASB Report related to FN-MF-270a.2, 

FN-MF-270b.1, FN-MF-450a.1, FN-MF-000.B, FN-IB-330a.1, and 

MGMT FN-MF-270a.1 metrics. 

Based on our review, we are not aware of any material 

modifications that should be made to management of Fannie Mae’s 

assertion that the specified information included Note 1 as of or 

for the years ended December 31, 2021, December 31, 2020 and 

December 31, 2019 are presented in accordance with the criteria set 

forth in Note 1, in order for it to be fairly stated.

December 13, 2022

Deloitte & Touche LLP

Suite 800

7900 Tysons One Place

McLean, VA 22102, USA

Tel: +1 703-251-1000

www.deloitte.com

© 2022 Fannie Mae 2021 ESG Report | 62

TABLE OF CONTENTS APPENDIX / ASSURANCE REPORT
SASB Index

SASB Standards are independent standards for ESG disclosures 

maintained by the International Sustainability Standards 

Board (ISSB). The SASB reporting standards are sector-specific, 

covering ESG reporting criteria for 77 industries. Fannie Mae’s 

position in the secondary mortgage market makes some of 

the risks and opportunities in our business model unique 

compared to companies that originate loans or lend money 

directly to borrowers in the primary mortgage market. In an 

effort to provide transparency on topics representative of other 

important facets of our business, we identified the following 

relevant SASB industry-specific Standards for inclusion within 

this report: Mortgage Finance (FN-MF) — our primary SASB 

industry, Commercial Banks (FN-CB), and Investment Banking 

and Brokerage (FN-IB).

The index in Note 1: Basis of Presentation (“Note 1”) below 

provides a consolidated list of metrics (the “specified 

information”) and the related criteria used to measure and 

evaluate the specified information. The criteria is based on 

the SASB Standards. Where applicable, Fannie Mae has made 

certain modifications to SASB Mortgage Finance metrics 

to align with our operations in the secondary mortgage 

market. Furthermore, Fannie Mae has omitted certain SASB 

Mortgage Finance metrics. The nature and rationale for each 

modified or omitted metric is described within the table 

below. One of the metrics is not fully covered by the SASB 

Standards; accordingly, Fannie Mae has reported this metric 

in accordance with management’s defined criteria which is 

informed by the SASB Standards. 

Management’s assertion

Management of Fannie Mae is responsible for the completeness, 

accuracy, and validity of the specified information included 

below in Note 1. Management is also responsible for the 

collection, quantification, and presentation of the specified 

information and for the selection or development of the criteria, 

which management believes provide an objective basis for 

measuring and reporting on the specified metrics. Management 

of Fannie Mae asserts that the specified information as of or for 

the years ended December 31, 2021, December 31, 2020, and 

December 31, 2019 is presented in accordance with the criteria 

set forth in Note 1.

Changes from our 2020 SASB Report

For transparency, we note changes from reporting in Fannie 

Mae’s 2020 SASB Report. Unless otherwise noted, these 

methodological changes are reflected in the 2021, 2020, and 

2019 data included in this report. Several changes affected 

multiple metrics and are not noted separately below. To better 

align with peers, we shifted our data population to singlefamily mortgages on our consolidated balance sheet, from 

our guaranty book of business, excluding off-balance sheet 

items (e.g., government-insured loans and long-term standby 

commitments) in this report; this change affects FN-MF-270a.1, 

FN-MF-270a.2, FN-MF-270b.1, and FN-MF-000.B. For increased 

transparency, we broke out FICO Not Available as a separate 

category; this change affects FN-MF-270a.1 and FN-MF-270a.2. 

We used this category in previous reporting for FN-MF-270b.1.

© 2022 Fannie Mae 2021 ESG Report | 63

TABLE OF CONTENTS APPENDIX / SASB INDEX
NOTE 1: BASIS OF PRESENTATION

SASB Criteria Specified Information

SASB Code and Metric Modified or Omitted Metric Response / Location Changes from 2020 

SASB Report

Lending practices

FN-MF-270a.2 — 

(1) Number and 

(2) value of (a) residential 

mortgage modifications, 

(b) foreclosures, and 

(c) short sales or deedsin-lieu of foreclosure, by 

FICO scores above and 

below 660.

Modified to clarify terms, 

replacing “residential” 

with “single-family” 

and “short sales” with 

“pre-foreclosure sales.” 

(1) Number and (2) 

value of (a) single-family 

mortgage modifications, 

(b) foreclosures, and (c) 

pre-foreclosure sales, or 

deeds-in-lieu of foreclosure, 

by FICO scores above and 

below 660.

Data Tables < Table 6. Single-Family 

Loan Modifications, Foreclosure 

Alternatives, and Foreclosures

For a more complete view 

of foreclosures, we include 

foreclosures that sold at auction 

without entering REO, a change 

from prior reporting on the 

basis of REO acquisitions only. 

FN-MF-270a.3 — Total 

amount of monetary 

losses as a result of legal 

proceedings associated 

with communications 

to customers or 

remuneration of loan 

originators.

Omitted; metric is not 

applicable, as Fannie 

Mae does not originate 

loans or lend directly 

to borrowers.

Total amount of monetary 

losses as a result of legal 

proceedings associated 

with communications to 

customers or remuneration 

of loan originators.

n/a

FN-MF-270a.4 — 

Description of 

remuneration structure 

of loan originators.

— Description of 

remuneration structure 

of loan originators.

Fannie Mae does not provide 

compensation to loan originators. 

The discussion below summarizes 

Fannie Mae’s guidance and minimum 

standards for lenders/sellers.

Single-Family

Sellers are required to comply with 

all federal, state, and local laws that 

apply to any of its origination, selling, 

or servicing practices. This includes 

ensuring that their loan originator 

compensation practices comply with 

the loan originator compensation 

provisions of the Truth in Lending 

Act and Regulation Z, and that 

loan originators comply with these 

requirements when presenting 

loan options to consumers (see 

Single-Family Selling Guide A3-2-01, 

Compliance With Laws and A3-2-02, 

Responsible Lending Practices).

Multifamily

Lenders delivering multifamily loans 

to Fannie Mae are required to charge 

a minimum origination fee based on 

the size of the loan being delivered. 

Lenders must collect the minimum 

origination fee and retain at least 50% 

of the fee. Any portion of the origination 

fee in excess of the Retained Portion 

may be used by the lender to pay 

correspondent or broker fees for the 

origination of the mortgage loan.

© 2022 Fannie Mae 2021 ESG Report | 64

TABLE OF CONTENTS APPENDIX / SASB INDEX
NOTE 1: BASIS OF PRESENTATION (CONT’D)

SASB Criteria Specified Information

SASB Code and Metric Modified or Omitted Metric Response / Location Changes from 2020 

SASB Report

Discriminatory lending

FN-MF-270b.1 — 

(1) Number, (2) value, 

and (3) weighted average 

Loan-to-Value (LTV) ratio 

of mortgages issued to 

(a) minority and 

(b) all other borrowers, 

by FICO scores above 

and below 660.

Modified to specify 

“single-family” 

mortgages and replace 

“issued” with “acquired,” 

as Fannie Mae does 

not lend directly to 

borrowers. 

(1) Number, (2) value, 

and (3) weighted average 

Loan-to-Value (LTV) ratio 

of single-family mortgages 

acquired by Fannie Mae 

related to (a) minority and 

(b) all other borrowers, 

by FICO scores above and 

below 660.

Data Tables < Table 8. Single-Family 

Mortgage Loan Acquisitions by Race 

or Ethnicity of Borrower(s)

In our 2020 SASB Report, this 

metric was based only on 

owner-occupied single-family 

loans, with certain exclusions 

aligned with the FHFA Housing 

Goals calculation methodology. 

To better align with peers, in 

this report, this metric is based 

on all single-family loans in the 

stated population irrespective 

of occupancy status.

FN-MF-270b.2 — Total 

amount of monetary 

losses as a result of legal 

proceedings associated 

with discriminatory 

mortgage lending.

Modified to replace 

“lending” with 

“practices,” as Fannie 

Mae does not originate 

loans or lend directly 

to borrowers. Includes 

individual resolutions 

of more than $100,000. 

Total amount of monetary 

losses as a result of legal 

proceedings associated 

with discriminatory 

mortgage practices.

Fannie Mae tracks our settlements or 

judgments exceeding $100,000 (not 

including attorneys’ fees) in cases 

involving allegations of discriminatory 

mortgage practices. Between 2019 and 

2021, there were no monetary losses 

meeting these criteria. 

FN-MF-270b.3 — 

Description of policies 

and procedures 

for ensuring 

nondiscriminatory 

mortgage origination.

Modified to specify 

“single-family” 

mortgage origination, 

since our multifamily 

borrowers are primarily 

Single-Asset Entities 

and Limited Liability 

Companies.

Description of policies and 

procedures for ensuring 

nondiscriminatory 

single-family mortgage 

origination.

Racial Equity in Housing Finance < Fair 

lending and fair housing

Environmental risk to mortgaged properties

FN-MF-450a.1 — 

(1) Number and (2) value 

of mortgage loans in 100-

year flood zones.

Modified to specify 

“loans requiring flood 

insurance,” which may 

also include some 

coastal areas not within 

a 100-year flood plain. 

Flood zone data are as 

of loan origination.

(1) Number and (2) 

value of mortgage loans 

requiring flood insurance 

by (a) single-family and 

(b) multifamily properties.

Data Tables < Table 13. Single-Family 

and Multifamily Loans Requiring Flood 

Insurance at Origination

For a more accurate view 

of exposure, we provide 

UPB allocated to individual 

properties where a multifamily 

loan has multiple properties, 

not all of which are located in 

flood zones. In 2020 reporting, 

the full loan UPB was reported 

as being in a flood zone. 

For more transparency, we 

have added reporting on our 

REO properties’ exposure to 

flood zones.

© 2022 Fannie Mae 2021 ESG Report | 65

TABLE OF CONTENTS APPENDIX / SASB INDEX
NOTE 1: BASIS OF PRESENTATION (CONT’D)

SASB Criteria Specified Information

SASB Code and Metric Modified or Omitted Metric Response / Location Changes from 2020 

SASB Report

Environmental risk to mortgaged properties (cont’d)

FN-MF-450a.2 — 

(1) Total expected loss 

and (2) Loss Given Default 

(LGD) attributable to 

mortgage loan default 

and delinquency due 

to weather-related 

natural catastrophes, 

by geographic region.

Omitted; see metric 

section for additional 

details.

(1) Total expected loss 

and (2) Loss Given Default 

(LGD) attributable to 

mortgage loan default 

and delinquency due 

to weather-related 

natural catastrophes, 

by geographic region.

Total expected losses and LGD are not 

disclosed in this year’s report as we 

continue to work toward producing 

projected loss estimates specific to 

weather-related events. Estimating 

expected losses and LGD attributable 

to weather-related factors is complex, 

evolving in nature, and requires a 

number of key assumptions related 

to drivers of credit performance. 

We understand the importance of 

evaluating the risk of potential loss 

attributable to weather-related natural 

catastrophes to our business. We 

established a Climate Impact team to 

assess climate-related risks and identify 

best practices and strategies to mitigate 

the impacts such events can have on 

our guaranty book, sellers, servicers, 

and borrowers. We are exploring the 

ability to estimate and communicate 

our exposure across a variety of natural 

catastrophes in a way that is both 

reasonable and consistent with industry 

best practices.

FN-MF-450a.3 — 

Description of how 

climate change and other 

environmental risks 

are incorporated into 

mortgage origination 

and underwriting.

— Description of how 

climate change and 

other environmental risks 

are incorporated into 

mortgage origination 

and underwriting.

Climate Risk & Resilience < Mitigating 

potential future climate-related

financial losses

Activity metric

FN-MF-000.A — 

(1) Number and 

(2) value of mortgages 

originated by category: 

(a) residential and (b) 

commercial.

Omitted; metric is not 

applicable, as Fannie 

Mae does not originate 

loans or lend directly 

to borrowers.

(1) Number and (2) value 

of mortgages originated by 

category: (a) residential and 

(b) commercial.

N/A

FN-MF-000.B — 

(1) Number and 

(2) value of mortgages 

purchased by category: 

(a) residential and (b) 

commercial.

Modified to clarify terms, 

replacing “residential” 

with “single-family” 

and “commercial” with 

“multifamily.” 

(1) Number and (2) value of 

mortgages purchased by 

category: (a) single-family 

and (b) multifamily.

Data Tables < Table 1. Single-Family 

and Multifamily Loan Acquisitions

To better align with the SASB 

Standard, we have added the 

number of multifamily loans. 

We excluded units financed 

by supplemental financing 

from the number of multifamily 

units financed.

Data security

FN-CB-230a.2 — 

Description of 

approach to identifying 

and addressing data 

security risks.

— Description of approach to 

identifying and addressing 

data security risks.

Data Privacy & Security

© 2022 Fannie Mae 2021 ESG Report | 66

TABLE OF CONTENTS APPENDIX / SASB INDEX
NOTE 1: BASIS OF PRESENTATION (CONT’D)

SASB Criteria Specified Information

SASB Code and Metric Modified or Omitted Metric Response / Location Changes from 2020 

SASB Report

Financial inclusion & capacity building

FN-CB-240a.4 — Number 

of participants in financial 

literacy initiatives for 

unbanked, underbanked, 

or underserved 

customers.

Modified to measure 

participants in terms 

of loans requiring 

homebuyer education 

and clarify that the 

underserved groups 

being served include firsttime homebuyers in loan 

products targeted at lowincome borrowers or with 

LTVs higher than 95% 

and borrowers with nontraditional credit. This 

metric does not include 

homebuyer education 

that was provided but 

not required. 

Number of loans acquired 

for which Fannie Mae 

required pre-purchase 

homebuyer education

Data Tables < Table 7. Education & 

Counseling

Housing Stability < Education & 

counseling

We added this metric in this 

year’s report. 

Systemic risk management

FN-CB-550a.2 — 

Description of approach 

to incorporation of 

results of mandatory and 

voluntary stress tests 

into capital adequacy 

planning, long-term 

corporate strategy, and 

other business activities.

— Description of approach to 

incorporation of results of 

mandatory and voluntary 

stress tests into capital 

adequacy planning, longterm corporate strategy, 

and other business 

activities.

2021 Form 10-K < Stress Testing (p. 20) and 

Enterprise Regulatory Capital Framework 

(p. F–63)

2020 Form 10-K < Stress Testing (p. 24) and 

Enterprise Regulatory Capital Framework 

(p. F–63)

2019 Form 10-K < Stress Testing (p. 18)

Our climate-related stress testing is 

nascent, and we are working to improve 

it to better inform our strategy. Together 

with our regulator and conservator, the 

FHFA, we are working to understand the 

impact that climate change may have on 

U.S. housing.

Employee diversity and inclusion

FN-IB-330a.1 — 

Percentage of gender 

and racial/ethnic group 

representation for (1) 

executive management, 

(2) non-executive 

management, (3) 

professionals, and 

(4) all other employees.

— Percentage of gender 

and racial/ethnic group 

representation for 

(1) executive management, 

(2) non-executive 

management, 

(3) professionals, and 

(4) all other employees.

Data Tables < Table 9. Representation by 

Racial or Ethnic Groups and Gender as a 

Percentage of Job Category

Human Capital < Fostering an inclusive 

workplace

We added a column totaling 

across all job categories. 

Incorporation of environmental, social, and governance factors in investment banking & brokerage activities

FN-IB-410a.2 — 

(1) Number and (2) 

total value of investments 

and loans incorporating 

integration of 

environmental, social, 

and governance (ESG) 

factors, by loan type.

Modified to clarify 

the metric used to 

track loans explicitly 

integrating ESG factors.

(1) Number and (2) value of 

mortgage loans underlying 

(a) green and (b) social 

labeled bonds.

Data Tables < Table 4. Multifamily Social 

Bond Issuance

Data Tables < Table 11. Green Bond 

Issuance

We added this metric in this 

year’s report. 

© 2022 Fannie Mae 2021 ESG Report | 67

TABLE OF CONTENTS APPENDIX / SASB INDEX
Management’s Criteria Specified Information

Defined Criteria Management Defined Metric Response / Location Changes from 2020 Reporting

(1) Number and (2) value of single-family 

mortgages of the following types: (a) Hybrid 

or Option Adjustable-rate Mortgages (ARM), 

(b) Prepayment Penalty, (c) Higher Rate, 

(d) Total, by FICO scores above or below 660. 

Management considered SASB FN-MF-270a.1 

when determining the criteria for this metric. 

a. Hybrid or option adjustable-rate 

mortgages (ARMs) are defined as 

ARMs with initial interest rate resets 

of less than five years or including 

negative amortization or interest-only 

payment schedules.

b. Prepayment penalties are defined as 

mortgage contracts that include a clause 

that assesses a penalty if the mortgage is 

paid in full within a certain time period.

c. Higher-rate mortgages are defined 

as higher-priced mortgage loans 

per Regulation Z (12 CFR 1026), 

implementing the Truth in Lending Act. 

d. Total loans comprises single-family 

mortgage loans on Fannie Mae’s 

consolidated balance sheet. 

(1) Number and (2) value of 

single-family mortgages of the 

following types: (a) Hybrid or Option 

Adjustable-rate Mortgages (ARM), 

(b) Prepayment Penalty, (c) Higher 

Rate, (d) Total, by FICO scores above 

or below 660.

Data Tables < Table 5. Certain 

Characteristics of Outstanding 

Single-Family Mortgage Loans

To better align with regulatory 

reporting, we shifted the definition 

of higher-rate mortgage to align with 

the Truth in Lending Act — comparing 

against the Average Prime Offer Rate 

(APOR) rather than Treasuries starting 

in 2010, and classifying based on 

spreads reported at origination rather 

than recalculating spreads for loans 

that are modified. 

NOTE 1: BASIS OF PRESENTATION (CONT’D)

SASB Criteria Specified Information

SASB Code and Metric Modified or Omitted Metric Response / Location Changes from 2020 

SASB Report

Business ethics

FN-IB-510a.2 — 

Description of 

whistleblower policies 

and procedures.

— Description of 

whistleblower policies and 

procedures.

Business Ethics < Employee code of 

conduct

Professional integrity

FN-IB-510b.4 — 

Description of approach 

to ensuring professional 

integrity, including 

duty of care.

— Description of approach 

to ensuring professional 

integrity, including duty 

of care.

Business Ethics

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TABLE OF CONTENTS APPENDIX / SASB INDEX
Management Defined Metric Response / Location

Governance

a) Describe the Board’s oversight of climate-related risks and opportunities. Corporate Governance & ESG Oversight < ESG and climate oversight

b) Describe management’s role in assessing and managing climate-related 

risks and opportunities.

Corporate Governance & ESG Oversight < ESG and climate oversight

Strategy

a) Describe the climate-related risks and opportunities the organization has 

identified over the short, medium, and long term.

Climate Risk & Resilience < Identifying and assessing climaterelated risks

b) Describe the impact of climate-related risks and opportunities on the 

organization’s businesses, strategy, and financial planning.

Climate Risk & Resilience < Mitigating climate-related risk to 

Fannie Mae

c) Describe the resilience of the organization’s strategy, taking into consideration 

different climate-related scenarios, including a 2°C or lower scenario.

Not disclosed

Risk management

a) Describe the organization’s processes for identifying and assessing climaterelated risks.Climate Risk & Resilience < Identifying and assessing climaterelated risks

Risk Management < Climate risk management

b) Describe the organization’s processes for managing climate-related risks. Risk Management < Climate risk management

c) Describe how processes for identifying, assessing, and managing climaterelated risks are integrated into the organization’s overall risk management.Risk Management < Climate risk management

Metrics and targets

a) Disclose the metrics used by the organization to assess climate-related risks 

and opportunities in line with its strategy and risk management process.

Data Tables < Table 13. Single-Family and Multifamily Loans 

Requiring Flood Insurance at Origination

b) Disclose Scope 1, Scope 2, and, if appropriate, Scope 3 greenhouse gas 

(GHG) emissions, and the related risks.

Not disclosed

c) Describe the targets used by the organization to manage climate-related 

risks and opportunities and performance against targets.

Not disclosed

TCFD Index

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TABLE OF CONTENTS APPENDIX / TCFD INDEX
Disclaimers

The information provided in this report reflects our 

approach to ESG at the date of this report and is subject 

to change without notice. We do not undertake to update 

any information in this report. There currently is no clear 

legal, regulatory, or other definition or market consensus 

as to what constitutes a “green,” “social,” “sustainable,” or 

similarly labeled project or investment, and any references 

to “sustainable bonds,” “green bonds,” “social bonds,” “ESG,” 

or similar terms in this report are intended as references 

to the internally-defined criteria of our businesses only, as 

applicable, and not to any jurisdiction-specific regulatory 

definition. Our approaches to the disclosures included in this 

report may be different from those included in mandatory 

regulatory reporting, including under SEC regulations, and 

we can provide no representation or assurance that our 

internal approach is consistent with other investment criteria, 

taxonomies, standards, or guidelines. The goals presented in 

this report are aspirational; as such, we make no guarantee 

or promise that these goals will be met. Some statistics and 

metrics in these disclosures are based on assumptions. 

Additionally, many of the figures in this report are unaudited. 

While this report describes events, including potential future 

events, and topics that may be significant from an ESG 

perspective, any significance does not necessarily equate 

to the level of materiality of disclosures required under U.S. 

federal securities laws. No reports, documents, websites, 

or third-party publications that are cited or referred to in 

this document shall be deemed to form part of this report. 

Fannie Mae is not responsible for the information contained 

on third-party websites, nor do we guaranty their accuracy 

and completeness. The information and data provided by a 

link to a website or publication is being referenced as of the 

date of this report, may be superseded by a later website or 

publication, and is subject to change without notice.

Forward-looking statements. This report contains a number 

of forward-looking statements, including statements regarding 

future economic and housing conditions, Fannie Mae’s future 

business plans, strategies, objectives, programs, products, 

and activities, the impact and benefits of Fannie Mae’s plans, 

strategies, programs, products, and activities, and the risks to 

Fannie Mae’s business and the factors that will impact them. 

These forward-looking statements are based on the company’s 

current assumptions regarding numerous factors and are 

subject to change. Actual outcomes may differ materially from 

those reflected in these forward-looking statements due to a 

variety of factors, including, but not limited to, those described in 

“Forward-Looking Statements” and “Risk Factors” in our annual 

report on Form 10-K for the year ended December 31, 2021, 

and our quarterly report on Form 10-Q for the quarter ended 

September 30, 2022. Any forward-looking statements made 

by Fannie Mae speak only as of the date on which they were 

made. Fannie Mae is under no obligation to, and expressly 

disclaims any obligation to, update or alter its forward-looking 

statements, whether as a result of new information, subsequent 

events, or otherwise.

No offer or solicitation regarding securities. This document 

is for general information purposes only, and does not 

constitute, or form part of, an offer to sell nor a solicitation 

of an offer to buy any Fannie Mae security mentioned herein 

or any other Fannie Mae security. Fannie Mae securities are 

offered only in jurisdictions where permissible by offering 

documents available through qualified securities dealers 

or banks, and no part of this document is incorporated by 

reference into, or part of, any offering documents.

No warranties; opinions subject to change; not advice. 

This document is based upon information and assumptions 

(including financial, statistical, or historical data and 

computations based upon such data) that we consider 

reliable and reasonable, but we do not represent that such 

information and assumptions are accurate or complete, or 

appropriate or useful in any particular context, including the 

context of any investment decision, and it should not be relied 

upon as such. No liability whatsoever is or will be accepted 

by Fannie Mae for any loss or damage howsoever arising 

out of or in connection with the use of, or reliance upon, 

the information contained in this document.

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TABLE OF CONTENTS APPENDIX / DISCLAIMERS
Opinions and estimates expressed herein constitute Fannie Mae’s 

judgment as of the date indicated and are subject to change 

without notice. They should not be construed as either projections 

or predictions of value, performance, or results, nor as legal, tax, 

financial, or accounting advice. No representation is made that 

any strategy, performance, or result illustrated herein can or 

will be achieved or duplicated. The effect of factors other than 

those assumed, including factors not mentioned, considered, 

or foreseen, by themselves or in conjunction with other factors, 

could produce dramatically different performance or results. 

We do not undertake to update any information, data, or 

computations contained in this document, or to communicate 

any change in the opinions, limits, requirements, and estimates 

expressed herein. Investors considering purchasing a Fannie Mae 

security should consult their own financial and legal advisors 

for information about such security, the risks and investment 

considerations arising from an investment in such security, the 

appropriate tools to analyze such investment, and the suitability 

of such investment in each investor’s particular circumstances.

Projected energy, emissions, and water usage savings 

are Fannie Mae’s estimates of the potential savings at the 

related mortgaged properties that may result from the 

implementation of the efficiency improvements required 

by the indicated green financing programs. There can be 

no assurance that any particular savings will be achieved 

at any given mortgaged property. Fannie Mae disclaims any 

liability for the failure of any mortgaged property to achieve 

any particular energy, emissions, or water usage savings. 

The estimates are solely as of the date hereof and Fannie Mae 

shall have no obligation to provide updated estimated or 

actual savings information. 

Fannie Mae securities, together with interest thereon, are 

not guaranteed by the United States and do not constitute 

a debt or obligation of the United States or of any agency or 

instrumentality thereof other than Fannie Mae.

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TABLE OF CONTENTS APPENDIX / DISCLAIMERS