As of yesterday’s close, Fannie Mae (OTCQB: FNMA) was up 0.88% to $2.2800. In contrast to its Average Weekly Volume of 1.83M, Fannie Mae stock traded for 1.60M shares. The Fannie Mae stock climbed following another GeMS deal.
What was that program about?
Millions of Americans have access to affordable mortgages and rent by way of Fannie Mae, the Federal National Mortgage Association. The FNMA partners with lenders across the country to provide housing opportunities to families. FNMA is leveraging its expertise and resources to make home purchasing easier while reducing costs and risk.
As part of its Fannie Mae Guaranteed Multifamily Structures (Fannie Mae GeMS) program, Fannie Mae priced a $879 million Green Multifamily DUS Real Estate Mortgage Investment Conduit (REMIC) last week.
- FNMA 2021-M2G marks the seventh Fannie Mae GeMS issuance of 2021.
- FNMA’s M2G deal is FNMA’s second GeMS deal backed by Green MBS collateral this year and the first deal since 2017 backed entirely by Green Building Certification-recognized collateral.
- With lower yields, current spread levels, and the availability of competition, FNMA is encouraged with the high demand.
- FNMA continues to generate positive change through its two green financing products for multifamily buildings, the Green Building Certificate (GBC) program and Green Rewards.
- FNMA has issued more than 95 billion dollars of Multifamily MBS backed by these products.
- In addition to offering REMICs backed by Green MBS, Fannie Mae GeMS has resecuritized an additional $12.6 billion through the program.
- FNMA’s GeMS provides investors with greater geographic diversification and a range of block sizes across the yield curve as DUS MBS, as well as the same rigor and environmental impact.
- The M2G issuance is in conjunction with FNMA’s 2020 Green Bond Impact Report, which provides a comprehensive look at impacts across Fannie Mae’s multifamily and single-family MBS portfolios.
FNMA published report on Green Bonds:
Fannie Last week, Fannie Mae (FNMA) published its annual Green Bond Impact Report. Title of the report was “Our Next Chapter in Green Bond Leadership” that was published to provide insight into the estimated environmental, social, and economic benefits of Green Bonds.
Multifamily Green Mortgage-Backed Securities (MBS) were issued by Fannie Mae (FNMA) from its first issuance in 2012 through year-end 2020, making it the world’s largest green bond issuer. Within the Fannie Mae GeMS program, Fannie Mae also securitized approximately $11 billion in Multifamily Green MBS.