Fannie Mae [1] 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 [2] 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 [3], 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 [4] to view more information on the disclosures from Fannie Mae.