Fannie Mae/NAHB Launch Effort to Develop New Mortgage Financing Products

Fannie Mae and NAHB are demonstrating their continued support of green building through a new partnership that will test and develop a menu of mortgage financing products based on environmentally-efficient criteria. The two organizations will work with home builders, lenders and other community partners to address the growing need for more creative home financing methods, according to Fannie Mae chairman Franklin D. Raines.

Six pilot cities have been identified where local HBAs and Fannie Mae Partnership Offices can begin to work together to develop initiatives that emphasize the efficient use of resources, such as energy and water, in the design, construction and operation of homes. The pilot cities are Atlanta, Columbus, Albuquerque, Denver, Los Angeles and Seattle.

Fannie Mae is providing an additional $100 million for investment in initiatives that test new housing finance products, support local green builder efforts, and develop creative solutions to environmental issues with community partners in those cities. The company recently revised its Energy Efficient Mortgage pilot by providing an underwriting variance that recognizes the added value of energy efficiency and translates the monthly energy savings into additional mortgage funds.