4.19.24
In March Fannie Mae introduced its first mortgage-backed securities (MBS) featuring Mission Index scores. The program, which is a progression from the Agency’s ‘social index’ launched in 2022, weighs certain characteristics of the bonds’ underlying loans—like borrowers in rural areas or loans for affordable rental housing—with an aim to appeal to investors who have a social mandate. Over the past 15 years, the Federal Reserve and domestic banks have been the two biggest investor groups for mortgage bonds backed by the Government, according to Fannie Mae Senior VP Devang Doshi. With the Fed reducing its MBS holdings and banks lessening their participation, Mr. Doshi stated that Fannie Mae “must take steps to ensure MBS are attractive to investors.”