ESG Social

Housing affordability 

We help make access to housing in the United States attainable and affordable for low- and moderate-income borrowers and renters, and use our market presence to help preserve and increase the supply of quality affordable housing. This work is not just an important part of Fannie Mae’s mission — it is what we were chartered to do. We design our underwriting standards, credit policies, and business practices to help ensure the safety and soundness of mortgage financing. We explore ways to increase the supply of affordable homes and rentals through efforts such as expanding financing options for manufactured housing  and rehabilitating our real estate owned (REO) properties. This exploration, along with our work with industry partners, allows us to continue providing pathways to affordable homes.

True to our Charter to serve all areas of housing, our Duty to Serve initiative brings innovative mortgage financing solutions to the country’s key overlooked markets — manufactured housing, preservation of affordable housing, and rural housing. Since launching our Duty to Serve efforts in 2018, we have provided $382.3 billion total liquidity to these underserved market segments, resulting in 251,630 home loans purchased and 3.4 million multifamily units financed.

*Totals reflect 2018-2022. Data represents Fannie Mae’s determination of qualifying Duty to Serve activities, and are subject to restatement or revision based on FHFA review. Fannie Mae’s 2022 results have not been validated. In 2022, only purchase money mortgage single-family loans were included in total calculations.

Racial Equity  

We are leveraging Fannie Mae's unique position to help make the housing finance system more racially equitable and accessible for current and aspiring homeowners and renters. In addition to overseeing the development of our enterprise ESG strategy and integrating it into our business, our Community Responsibility and Sustainability Committee of our Board of Directors also leads the development of industry solutions to increase access to housing for people of color, address systemic bias in housing, and promote sustainable homeownership for people of color. We are intentionally addressing issues that have disproportionately impacted people of color in their housing journey and have outlined a range of specific actions Fannie Mae will take in our Equitable Housing Finance Plan.

The following are examples of our current work that supports these goals:

• RefiNow™ makes it easier for eligible current homeowners earning at or below 80% of Area Median Income (AMI) to refinance at a lower interest rate and reduce their monthly mortgage payment. Recognizing that lower-income borrowers typically refinance at a slower pace than higher-income borrowers, potentially missing an opportunity to save on housing costs, RefiNow lowers some of the barriers to refinancing. RefiNow assures homeowners benefit from the refinance loan by requiring a reduction in the homeowner’s interest rate by a minimum of 50 basis points and a reduction of at least $50 in the homeowner’s monthly mortgage payment. FHFA estimates that borrowers who take advantage of the new refinance option could save an average of between $100 and $250 per month (based on prevailing market interest rates).
• HomeView provides accessible, interactive resources demystifying the homebuying process by providing consumers with facts and figures about what it takes to achieve sustainable homeownership. It’s a comprehensive and free education resource designed to support consumers at every stage of the homeownership journey. These resources give future homeowners the tools they need to take the first steps in their homebuying journey.
• Incorporating rent payment history in credit evaluations is a recent update to our automated underwriting system, Desktop Underwriter®. It allows lenders to consider a history of recurring rent payments in assessing eligibility. Approximately 20% of the U.S. population overall has little established credit history — a group in which Black and Hispanic consumers are disproportionately represented. Additionally, Fannie Mae’s National Housing Survey® found that Black consumers identify insufficient credit score or credit history as their single biggest obstacle to getting a mortgage and do so at a much higher rate compared to white consumers (29% to 18%). This one step is creating a more inclusive mortgage credit evaluation process for all prospective first-time homebuyers.
• Established a new senior leadership role to drive equity in housing. This leader focuses on addressing the toughest systemic challenges around homeownership and wealth in communities of color.