Fannie Mae Launches Socially Conscious Mortgage-Backed Securities to Incentivize Affordable Housing Loans

Fannie Mae selling mortgage-backed securities (MBS) designed to appeal to socially conscious investors
New "Mission Index" criteria gives extra weight to mortgages for affordable housing, rural areas, etc.
Aims to incentivize lenders to provide mortgages to underserved groups by making associated MBS more attractive
Comes as Fed has stopped buying MBS; seeks to draw new demand from asset managers
Still early to judge effectiveness, but could appeal to funds looking for certain prepayment behaviors