Homebuyers, Owners, & Renters
      
      Homebuyers, Owners, and Renters

          
                        Business Partners
                  Single-Family Business

Helping lenders serve homebuyers and homeowners with affordable mortgages
    
          Multifamily Business

Financing for quality, affordable rental housing in every market, every day
    
          Capital Markets

Reducing risk and enhancing housing finance liquidity
          About Us
                toggle
                Who We Are
                                              toggle
                        Awards and Recognition
                                                      Diversity and Inclusion
                                                              toggle
                                Employee Resource Groups
                                                                      Progress With Purpose
                                                      Employee Code of Conduct
                                                      Community Engagement
                                                      History
                                      What We Do
                                              toggle
                        Duty to Serve
                                                              toggle
                                Manufactured Housing
                                                                      Affordable Housing Preservation
                                                                      Rural Housing
                                                                      Research Initiatives
                                                                      Colonias Investment Areas
                                                      Homeownership
                                                              toggle
                                Access to Mortgage Credit
                                                                      Restrictive Covenants
                                                      Innovation
                                                      Mortgage Finance in America
                                                      Financial Performance
                                                      Disaster Resiliency and Relief
                                                      Pilot Transparency
                                      Leadership Team
                                      Corporate Governance
                                              toggle
                        Corporate Governance Guidelines
                                                      Fannie Mae Charter
                                                      Board of Directors
                                                      Committees
                                                      Committee Charters
                                                      Code of Conduct
                                                      Bylaws
                                                      Contacting the Board of Directors
                                                      Housing Reports
                                      Investor Relations
                                              toggle
                        Quarterly and Annual Results
                                                      Annual Reports
                                                      SEC Filings
                                                              toggle
                                All SEC Filings
                                                                      Annual Filings
                                                                      Quarterly Filings
                                                                      Current Reports
                                                                      Section 16 Filings
                                                                      Proxy Filings
                                                      Additional Disclosures
                                                              toggle
                                Monthly Summary
                                                                      Capital Disclosures
                                                      Stock Information
                                                      Current Stock Information
                                                      Contact Information
                                      ESG
                                              toggle
                        Learn about our business
                                                      Environmental
                                                      Social
                                                              toggle
                                Equitable Housing Finance Plan
                                                      Governance
                                                      Sustainable Bonds
                                                              toggle
                                Green Bonds
                                                                      Social Bonds
                                                      Reports & Disclosures
                                                              toggle
                                2021 ESG Report
                                      Research & Insights
                                              toggle
                        Forecast
                                                              toggle
                                Monthly Archive
                                                                      Weekly Archive
                                                      Surveys & Indices
                                                              toggle
                                National Housing Survey
                                                                      Mortgage Lender Sentiment Survey
                                                                      Fannie Mae Home Price Index
                                                                      Refinance Application-Level Index
                                                                      Special Topics
                                                      Publications
                                                              toggle
                                Fannie Mae Working Papers
                                                                      Housing Insights
                                                                      Partner Research
                                                                      Publications Archive
                                                      Perspectives
                                                              toggle
                                Archive - 2020
                                                                      Archive - 2021
                                                                      Archive - 2022
                                                                      Archive - 2023
                                      Newsroom
                                              toggle
                        News
                                                      Media Resources
          
                        Careers
                toggle
                Our Teams
                                              toggle
                        Corporate Teams
                                                      Data & Analytics
                                                      Digital & Technology
                                                      Mortgage & Customer Solutions
                                                      Risk Management
                                      Life at Fannie Mae
                                      Diversity & Inclusion
                                      Benefits & Professional Development
                                      Campus
          
                        Contact Us
                      
            Google Translate Disclaimer
            The Google Translate feature is a third-party service that is available for informational purposes only. Fannie Mae is unable to guarantee the accuracy of any translation resulting from the tool and is not responsible for any event or damage that occurs as a result of using the translations generated by the Google Translate feature.
            OK
  Translate
        Translation Disclaimer
          Chinese, Traditional
            English
            Filipino
            Korean
            Spanish
            Vietnamese
 FM Site Nav
  

        

Homepage
                    
      Fannie Mae logo
    Toggle navigation
      Rent
                
                All Renter Resources
                                      The Rental Process
                                      Make Your Rent Count
                                      Credit Basics
                      
            Buy
                
                All Homebuyer Resources
                                      7 Steps to Homeownership
                                      HomeView Homeownership Education Course
                      
            Own
                
                All Homeowner Resources
                                      Make the Most of Your Home
                                      Refinancing Your Mortgage
                                      When It’s Time to Sell
                      
            Get Relief
                  Manage Financial Uncertainty

All Resources to Manage Financial Uncertainty

Help for Homeowners

Help for Renters

Protect Yourself from Fraud
    
          Recover from a Disaster

All Resources for Recovering from a Disaster

Recovery Assistance for Homeowners

Recovery Assistance for Renters

Protect Yourself from Fraud
                      
            Calculators & Tools
                
                All Calculators & Tools
                                      Tools for Renters
                                      Tools for Homebuyers
                                      Tools for Homeowners
                                      HomeView® Homeownership Education Course
                                      Glossary
                                      Mobile AppToggle search
 Skip to main content
          
    
    Home
                        Research and Insights
                        Perspectives
                        Mission in Focus
    Perspectives Blog
Mission in Focus
January 23, 2024
Enhanced Disclosures Lay the Groundwork for Single-Family Social MBS
Nick Sapirie
    Nick Sapirie
    Fannie Mae Vice President, Capital Markets – Single-Family Products
              Barbara Pak
    Barbara Pak
    Freddie Mac Vice President, Single-Family Securitization
Congress chartered Fannie Mae and Freddie Mac (the Enterprises) to provide liquidity, stability, and affordability to the U.S. housing market. While supporting mortgage lenders and investors, we are also focused on addressing housing challenges that consumers face – including those that disproportionately burden lower- and moderate-income borrowers and renters. As part of this, we continuously seek solutions to direct capital in support of such borrowers and to promote access to housing markets across the country – in alignment with our statutory mission and goals.

This motivated us in 2022 to launch the Single-Family Social Index, a creative disclosure solution that provides insights into the mission-oriented lending activities underlying our mortgage-backed securities (MBS). Since then, we collected market feedback, refined the methodology, and are now introducing updates to the disclosure, including a refreshed name, the Mission Index. We've also laid the groundwork for our exciting newest development – Fannie Mae's and Freddie Mac's aligned Single-Family Social Bond programs.

**The Next Chapter: The Mission Index**

While the Mission Index name is new, the underlying concept is not. Rather, it's an evolution of the Social Index enhanced with the help of market feedback and includes many of the same criteria as the previous version. Our focus on our mission and Duty to Serve goals through the Mission Index is intended to promote access to financing for the communities we were chartered to serve. The new name, the "Mission Index," reflects direct feedback from investors, highlights that this is an Enterprise-specific disclosure, and helps investors better understand how our mission activities support U.S. housing. The corresponding pool-level disclosures will be renamed as the Mission Criteria Share (MCS) and Mission Density Score (MDS).

To balance several important factors, the Mission Index:

Allows investors to identify MBS with high concentrations of loans that align with the Enterprises' mission objectives.
	Seeks to preserve the liquidity and efficiency of the single-family UMBS to-be-announced (TBA) mortgage market for Fannie Mae and Freddie Mac issued securities.
	Helps to mitigate potential harm to borrower privacy by aggregating potentially sensitive data elements about a loan into rolled-up metrics.The updated Mission Index contains ten criteria, focusing on income, borrower, and property attributes. For example, the index includes first-time homebuyers, low-income borrowers, affordable rental housing, borrowers residing in or purchasing homes in underserved markets, and manufactured housing properties. As with the previous version, the design is adaptable and allows criteria to be adjusted over time as the types of borrowers needing housing finance support evolves. Read more about our Mission Index criteria and methodology here.

**Introducing Single-Family Social Bonds**

Engagement with market participants indicated that we could build upon the disclosures and attempt to generate more impact through the issuance of labeled social bonds. Our Single-Family Social Bond programs will offer investors the ability to invest in single-family MBS featuring high concentrations of loans made consistent with our mission and Duty to Serve objectives, insights that are provided through the Mission Index. In turn, investor demand for these MBS may result in lenders focusing more on lending to these populations, with loans underwritten to the Enterprises' strong credit standards.

We worked closely with our regulator, the Federal Housing Finance Agency, to incorporate market feedback and design a durable solution, which is aligned across both Fannie Mae and Freddie Mac. Our updated frameworks address the four components of the International Capital Markets Association Social Bond Principles. They are also each validated by an independent second party opinion.

In line with labeled Social Bond practices, the Enterprises will provide annual impact reporting to help the market understand the social impact of the loans underlying their investments. We're also responding to investor feedback to better understand how incremental revenue gained from labeled social bonds will be deployed. For example, with respect to whole loans the Enterprises purchase and subsequently securitize in labeled social bonds, we will provide reporting to demonstrate how any incremental revenue is being allocated to support our statutory mission requirements, such as our mission and Duty to Serve objectives.

**Looking Ahead**

The new Mission Index name will apply to all pools, outstanding and new issue, beginning with March 2024 issuances. The updated formulation will apply to all pools for Fannie Mae beginning with March 2024 issuances and for Freddie Mac beginning with June 2024 issuances. Fannie Mae and Freddie Mac expect to assign labels to Single-Family MBS meeting the Social Bond criteria beginning in June 2024, and impact reporting for those bonds will be published in 2025.

We know there is much more to be done in supporting homeownership and access to affordable rental housing. The evolved Mission Index and the creation of a Single-Family Social Bond program are aimed to advance these efforts and attract new sources of capital. We appreciate our partners in the capital markets who have contributed to the design, and we look forward to continued feedback on this important work.

**Learn More**

Read our companion documents to dive deeper into the Social Bond Framework, Second Party Opinion, and Mission Index methodology.

*This is not an offer to buy or sell any Freddie Mac securities. Offers for any given security are made only through applicable offering circulars and related supplements, which incorporate Freddie Mac’s most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission (SEC); all other reports Freddie Mac files with the SEC pursuant to Section 13(a) of the Securities Exchange Act of 1934 (Exchange Act), excluding any information "furnished" to the SEC on Form 8-K; and all documents that Freddie Mac files with the SEC pursuant to Sections 13(a), 13(c) or 14 of the Exchange Act, excluding any information "furnished" to the SEC on Form 8-K.*

*The financial and other information contained in this document and in the documents that may be accessed through this document speaks only as of the date of those documents. The information could be out of date and no longer accurate. Freddie Mac undertakes no obligation, and disclaims any duty, to update any of the information in those documents.*

*These materials may contain forward-looking statements. Forward-looking statements involve known and unknown risks and uncertainties, some of which are beyond the company’s control. Management's expectations for the company's future necessarily involve a number of assumptions, judgments and estimates, and various factors could cause actual results to differ materially from the expectations expressed in these and other forward-looking statements. These assumptions, judgments, estimates and factors are discussed in the company’s most recent Annual Report on Form 10-K, and its reports on Form 10-Q and Form 8-K, which are available on the Investor Relations page of the company’s Web site at http://www.freddiemac.com/investors and the SEC's website at www.sec.gov. The company undertakes no obligation to update forward-looking statements it makes to reflect events or circumstances occurring after the date of this document.*

TOPICS
  
Fannie Mae Corporate
  
  
      Twitter
              Facebook
              Linkedin
              Email
Research and Insights
                                                              Forecast
                                    Surveys & Indices
                                    Publications
                                    Perspectives
                                                              Archive - 2024
                                    Archive - 2023
                                    Archive - 2022
                                    Archive - 2021

Our Company
    About Us
      Contact Us
      Careers
      Investor Relations
      Newsroom
      Research & Insights
      ESG
  Business Partners
    Single-Family Business
      Multifamily Business
      Capital Markets
	      Suppliers
      Developer Portal
  Homebuyers, Owners, & Renters
    Educational Resources
      Credit Basics
      HomeView Homeownership Education Course
      HomePath - Search for Homes
      Make Your Rent CountCalculators & Tools
      All Calculators and Tools      Glossary of Key Terms
      Mortgage Calculator
      Down Payment Assistance Search Tool
      Mobile AppLet Us Help You
      Contact a Housing Counselor
      Manage Financial Uncertainty
      Recover from a Disaster
    
    
  

      
Social media
  

        
            Follow us
          Follow us
          Facebook
          Twitter
          LinkedIn
          Instagram
    Footer
  

        
            Legal
          Privacy
          Digital Accessibility
                Cookie Preferences
            © 2024 Fannie Mae