WASHINGTON, DC - Fannie Mae announced enhancements to its Green Rewards product that eliminate the cost of a required energy and water audit report and increase loan proceeds to borrowers by enabling lenders to underwrite 75 percent of the owners' projected cost savings. These enhancements come on the heels of a product that already provides better pricing for borrowers.
"At Fannie Mae, our goal is to be the undisputed leader in providing innovative products and affordable financing for owners and operators who want to reduce their properties' environmental impact on the planet," said Bob Simpson, Vice President for Multifamily Affordable, Green, and Small Loan Financing, Fannie Mae. "Since the beginning of the year, we have proven that leadership by providing more than $1.2 billion in financing for green properties through July, and by continuing to innovate in ways that make it easier and more affordable for borrowers to make energy- and water-efficient improvements."
In addition to increasing the underwriting of an owner's projected energy and water cost savings to 75 percent, Green Rewards continues to allow 25 percent of tenants' projected cost savings to be underwritten, a feature offered only by Fannie Mae. Another significant improvement is that Fannie Mae will now pay 100 percent of the cost of the energy and water audit report, which includes the ASHRAE Level 2 report required for all Green Rewards and Green Preservation Plus loans.
"Our Green Financing solutions are making positive, measurable changes at multifamily properties," said Chrissa Pagitsas, Director Green Financing Business, Fannie Mae. "The product enhancements that we've made further remove barriers for owners to make smart green investments, for tenants to live in better quality properties and for sustainability-focused investors to access a consistent supply of Green MBS."
Fannie Mae's Green Financing business supports loans for properties that will save 20 percent or more on their annual energy or water consumption by upgrading to energy- or water-efficient equipment, as well as for properties that have been awarded a green building certification, such as LEED, ENERGY STAR, or National Green Building Standard.
For nearly 30 years and through every market cycle, Fannie Mae has provided liquidity, stability, and affordability to the rental market working with its 25 Delegated Underwriting and Servicing (DUS®) Lenders. Fannie Mae's unique DUS platform relies on shared risk, with lenders retaining some of the underlying credit risk of the loans they sell to Fannie Mae. Our DUS Lenders are delegated the ability to underwrite, close, deliver, and service loans on all types of multifamily properties, which means faster decisions and quicker closings for customers.