Supporting Ginne Mae’s mission to promote broader access to mortgage financing, the company has announced the launch of a “social bonds” label for single-family forward mortgage-backed securities supporting its mission-oriented work and communicate to investors the positive social impacts of its financing framework.
The launch will help increase investor awareness of the value proposition in Ginnie Mae securities, increasing opportunities to attract new sources of capital in support of lenders and borrowers Ginnie Mae ultimately serves.
The prospectus revisions highlight structural aspects of Ginnie Mae’s programs that have a significant social impact by promoting broader access to mortgage financing for historically underserved communities. With the revision to the prospectus, investors will have the choice, along with MBS pool level disclosure data, to independently determine Ginnie Mae MBS as “social bonds,” meaning the underlying collateral is designed to support a positive social and affordable housing outcome. The new Social Impact and Sustainability Framework outlines the characteristics of Ginnie Mae’s Social Bonds and broader portfolio.
“Ginnie Mae has been driving social impact through the capital markets for the past 55 years,” said President Alanna McCargo. “Adding a social label alongside the impact framework and data disclosures for our program makes clear the social benefit that is inherent in our mortgage-backed securities and allows investors the choice to identify what they deem to be a meaningful social impact investment. This is an important step forward for our securitization program and a powerful tool for investors who want to put capital to work that impacts America’s communities and households.”