The news is out -- thanks to you, the volume of our green business increased more than 1,000 percent in 2016, with over $3.5 billion in Fannie Mae Multifamily Green financing. Additionally, every loan was securitized as a Green MBS, attracting a wider base of MBS investors. Momentum is on our side for a fantastic 2017!
How can your existing, older property go green in 2017?
Lower interest rate, large loan size, and an energy audit report paid 100% by Fannie Mae are a winning combination to going green. Over time, properties become increasingly energy and water inefficient as equipment and systems age and new efficient technologies come onto the market. Our Green Rewards loan is tailored for the owner ready to increase cash flow and improve property quality by making energy- and water-saving improvements.
What's special about a Fannie Mae Green MBS?
Fannie Mae Green Mortgage loans are generally securitized as a single Green Fannie Mae DUS Mortgage-Backed Security (Green MBS). This allows investors to know that the Green MBS is either backed by a property with a Green Building Certification or a property with improvements to reduce energy and water usage. Our Green MBS has all the benefits of our traditional DUS® MBS -- transparency, superior call protection, stable cash flows, and more.
In February 2017, Fannie Mae priced its first Guaranteed Multifamily Structure (GeMS) Real Estate Mortgage Investment Conduit (REMIC) with Green tranches, the $1 billion FNA 2017-M2. This is the first agency CMBS with Green tranches; the A1 and A2 classes are backed by approximately $600 million in fixed-rate, 10-year Green MBS. The deal attracted half a dozen new investors with a green or socially responsible investment mandate.
To learn more about our suite of green financing products, contact your deal team or email the Fannie Mae Multifamily Green Financing team today. We look forward to partnering with you and helping you do well by doing good in 2017 and beyond!