Fannie Mae's New Mortgage-Scoring System Aims to Lift MBS Demand.

FANNIE Mae; MORTGAGE-backed securities; FREDDIE Mac (Company); BOARD of Governors of the Federal Reserve System (U.S.); INVESTORS; MORTGAGE rates; MORTGAGE bonds; BUYER'S market

Fannie Mae is introducing a new mortgage-scoring system to attract socially minded investors and increase demand for agency mortgage-backed securities (MBS). The revamped criteria give extra weight to mortgages used for affordable rental housing or borrowers in rural areas with high poverty levels. The goal is to provide investors with more visibility into the underlying mortgages, making it more attractive to buy MBS with loans to underserved borrowers and potentially lowering interest rates for those borrowers. This new program is an updated version of the "social" index first introduced in 2022. [Extracted from the article]

Copyright of Bloomberg.com is the property of Bloomberg, L.P. and its content may not be copied or emailed to multiple sites or posted to a listserv without the copyright holder's express written permission. However, users may print, download, or email articles for individual use. This abstract may be abridged. No warranty is given about the accuracy of the copy. Users should refer to the original published version of the material for the full abstract. (Copyright applies to all Abstracts.)