Fannie Mae, in conjunction with Freddie Mac, is implementing several enhancements to its Single-Family mortgage-backed securities (MBS) disclosures to include water efficiency certification, detailed below, as announced on October 1, 2024. “Based on our updated Single-Family Green Bond Framework, we are expanding our Green MBS disclosures to include Water Certification as a new enumeration for the Green Program Criteria pool stratification. In addition, a new stratification will be implemented to identify the water certifications achieved that meet our Green MBS criteria. The stratification will be dynamic and disclosed only if any of the properties backed by the underlying mortgage loans receive a water certification eligible for our Green MBS Program. This enhancement will be effective on November 18, beginning with December issuances.” “Water Efficiency Loans backed by properties located in water-stressed/water-scarce areas with Water Certifications achieving a water use reduction of at least 30% are eligible for Fannie Mae’s Green MBS Program. Eligible certifications maximize water efficiency at the lowest-cost intervention point (e.g., for new construction, when the home is being designed and built) and reduce the impact on existing water resources while providing utility savings for the homeowner.” The list of eligible certifications includes EPA WaterSense verification. RESNET is a WaterSense Home Certification Organization (HCO) and HERSH2O® is a WaterSense Approved Certification Methodology. This means builders now have a performance-based approach to achieving the WaterSense label for their homes. By achieving a HERSH2O score of 70 or less and meeting a few simple requirements, builders can then label their homes as WaterSense certified. All active certified RESNET Home Energy Raters and Rating Field Inspectors are eligible to conduct HERSH2O ratings after completing the online HERSH2O Rater Training and viewing the WaterSense Version 2 video on the RESNET training portal. All current RESNET accredited Rating Quality Assurance Providers (QA Providers) are eligible to become HERSH2O Rating Providers after meeting the following criteria in the Implementation Guidelines for HERSH2O and WaterSense Version 2 and completing the HERSH2O Provider Application.
