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Fannie Mae Securities to Feature New Social Disclosures

Fannie Mae is now attaching two new social disclosures to their single-family mortgage-backed securities (MBS), called the Social Criteria Share (SCS) and the Social Density Score (SDS), which are designed to respond to investor feedback and aims to provide MBS investors with insights on socially oriented lending activities while helping individual consumers preserve their confidentiality. 

Going forward, Fannie Mae will issue SCS and SDS disclosures at the issuing point starting December 2. To help with historical analysis, Fannie Mae is also providing charts containing common visualizations of prepayment activity. 

"We're excited to release the new social disclosures after receiving positive feedback on the proposal over the last several months," said Devang Doshi, Senior Vice President of Single-Family Capital Markets at Fannie Mae. "This is a significant step forward in terms of providing insights for market participants while working to protect borrower privacy, and we remain committed to continued engagement with the investor community for further developments in socially conscious investments." 

While these pool-level disclosures may support investors in determining which pools may meet their socially minded investment criteria, Fannie Mae is not labeling any pools as Single-Family Social Bonds. Fannie Mae will consider feedback from investors, second-party opinion providers, and other market participants to determine how to approach potential labeled issuance. 

Click here to view more information on the disclosures from Fannie Mae. 

About Author: Kyle G. Horst

Kyle G. Horst is a reporter for DS News and MReport. A graduate of the University of Texas at Tyler, he has worked for a number of daily, weekly, and monthly publications in South Dakota and Texas. With more than 10 years of experience in community journalism, he has won a number of state, national, and international awards for his writing and photography including best newspaper design by the Associated Press Managing Editors Group and the international iPhone photographer of the year by the iPhone Photography Awards. He most recently worked as editor of Community Impact Newspaper covering a number of Dallas-Ft. Worth communities on a hyperlocal level. Contact Kyle G. at [email protected].

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