Pairing financial responsibility with social impact is what makes the model work.
Higher interest rates and rising home prices have pushed homeownership out of reach for many U.S. families. For first-time buyers and households with modest incomes, even small increases in monthly payments can determine whether a mortgage is possible.
State Housing Finance Agencies (HFAs) help bridge that gap. These public agencies expand access to affordable housing by offering below-market interest rates, down payment assistance, and financing options designed for low- and moderate-income borrowers.
As more families turn to these programs, HFAs need reliable funding to keep lending and to support affordable housing development. MetLife helps meet this need by investing in bonds issued by HFAs, which provide agencies with capital they can put to work in communities.
MetLife recognized that HFAs needed capital to continue supporting families looking to buy or improve their homes, while at the same time was looking for investments that were financially sound and aligned with its broader purpose.
“At a high level, the business model is pretty simple” said Bill Schramm, lead municipal housing analyst, MetLife Investment Management. “These agencies borrow money in the capital markets and turn around and lend it to people buying homes.”
Between 2022 and 2025, MetLife increased its exposure to state HFAs from less than $100 million to more than $600 million. These investments currently support housing initiatives in 28 states.
When MetLife invests in state housing agency bonds, it lends to HFAs that use the capital to help families qualify for mortgages they could not otherwise access, offer competitive or below-market interest rates, and provide down payment assistance, especially for first-time homebuyers. Many HFAs also support the development or rehabilitation of affordable homes and apartments.
In addition to supporting affordable housing, access to services and economic opportunity, investments in HFA bonds also demonstrate that long-term capital can help create measurable, positive outcomes for people and communities.
To identify investment opportunities, MetLife teams build frameworks to evaluate state programs, deepen relationships with housing agencies and financial partners, and use technology to navigate complex information efficiently – all while keeping the focus on long-term value and impact.
These investments can help people buy a first home, move into safer housing, or remain in their community as costs rise. They can open doors for teachers, health care workers, service employees and young families who might otherwise be priced out.
By supporting HFAs, MetLife isn’t just investing in bonds – it’s investing in stability, opportunity and the belief that safe, affordable housing is the foundation of strong communities.
“It is particularly satisfying when our investments at MetLife help people turn the key in their own front door and make home ownership a reality” Bill adds.
