Thursday, September 14, 2023
- Ginnie Mae introduces its “Social Bond” label for Single-Family Forward Mortgage-Backed Securities (MBS) prospectuses.
- The organization also released the Social Impact and Sustainability Framework, emphasizing the social impact of its initiatives.
- The changes aim to boost investor awareness and potentially attract new capital.
- The updated prospectus underscores Ginnie Mae’s efforts to enhance mortgage financing access for historically underserved communities.
- Investors can now identify Ginnie Mae MBS as “Social Bonds” — indicating that the collateral supports positive social and affordable housing outcomes.
- President Alanna McCargo emphasized Ginnie Mae’s longstanding commitment to driving social impact through capital markets.
- Effective from October 1, 2023, Ginnie Mae will include a Social Bond Label section in its prospectuses for Single-Family Forward MBS.
Unedited Press Release Text:
Ginnie Mae Announces First-Ever Social Bond Enhancements to Define its Significant Impact in Promoting Broader Access to Mortgage Financing
Updates to Mortgage-Backed Securities Prospectuses and Social Impact and Sustainability Framework Support Ginnie Mae’s Mission
Washington – Today, Ginnie Mae announced the launch of its “Social Bond” label for Single-Family Forward Mortgage-Backed Securities (MBS) prospectuses and released the Social Impact and Sustainability Framework. Together, these updates support Ginnie Mae’s mission-oriented work and communicate the positive social impact of its programs to investors. Today’s 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.”
Effective October 1, 2023, Ginnie Mae will revise its prospectuses for Single-Family Forward MBS contained in the Ginnie Mae MBS Guide, HUD Handbook 5500.3, REV-1 Appendices to include a Social Bond Label section. Learn more by reading the APM 23-10 here and the Social Impact and Sustainability Framework here.
About Ginnie Mae
Ginnie Mae is an entirely government-owned corporation that attracts global capital into the housing finance system to support homeownership for veterans and millions of homeowners throughout the country. Ginnie Mae mortgage-backed security (MBS) programs directly support housing finance programs administered by the Federal Housing Administration, the U.S. Department of Veterans Affairs, the U.S. Department of Housing and Urban Development’s Office of Public and Indian Housing, and the U.S. Department of Agriculture’s Rural Housing Service. Ginnie Mae is the only MBS to carry the explicit full faith and credit of the United States Government.