C1-2-05, Delivering Green MBS to Fannie Mae (09/04/2024)

Fannie Mae's Green MBS consists of loans secured by properties that have received approved green building certifications within the last five years. An eligible green building certification requires the home to be at least 10% more efficient than a home built to an individual state's energy code. Lenders may deliver whole loans or MBS.

Green MBS loans are subject to standard Selling Guide requirements, including the following:

• Loans may be ARMs or fixed-rate.
• All property types are eligible.
• Refer to the Eligibility Matrix for applicable LTV, CLTV and HCLTV ratio requirements.
• The property must have one or more eligible green building certifications obtained within the last five years. See Single-Family Green MBS Certifications for a list of current organizations that meet our requirements. 
  • For whole loans: The loan must be sold within five years of the property's certification year.
  • For loans in MBS: The pool must have a pool issuance year within five years of the property's certification year.

Example: For a loan secured by a property with a green building certification received in the year 2020, the loan must be sold to Fannie Mae by the end of 2025.

For a Green whole loan sale, lenders should contact their Fannie Mae Account Team (see  E-1-02, List of ContactsE-1-02, List of Contacts).

For a Green MBS, lenders may use EarlyCheck or Loan Delivery to confirm that all loans are Green MBS-eligible. To be considered a Green MBS, 100% of the loans in the MBS must be eligible.

One of the following special feature codes must be delivered in addition to any other SFCs that may apply to the transaction:

• SFC 784 - ENERGY STAR green building certification, or
• SFC 881 - Department of Energy Zero Ready Home.