Tech firm RiskSpan announced the incorporation of Fannie Mae’s and Freddie Mac’s Single-Family Social Index data into its Edge Platform.
Fannie Mae and Freddie Mac rolled out their social index disclosures in November 2022. The index consists of two measures, the Social Criteria Score and the Social Density Score and discloses the share of loans in a given pool that are made to low-income, minority, and first-time homebuyers, as well as mortgages on homes in low-income areas, minority tracts, high-needs rural areas, and designated disaster areas. Manufactured housing loans also contribute to the score.
Rather than classifying each individual bond as “social” or “not social,” the new Agency data available on the Edge Platform assigns every pool two fully transparent scores – one indicating the percentage of loans in a pool that satisfy any of the defined social criteria, the other reflecting how many criteria a pool’s average loan satisfies. These enable Agency traders and investors to view and understand each pool along a full continuum of the social index, RiskSpan said in a statement.