Primary Changes

• Part III, Chapter 18: Choice Refinance Loans, Section 1803: Prepayment Premiums:  Requirements were clarified to align with the longstanding practice that you must not waive any:
  • Prepayment Premium based on required yield maintenance; or
  • portion of the Minimum 1% Prepayment Premium above the required yield maintenance if the Portfolio Mortgage Loan
    • has a minimum Prepayment Premium other than 1%,
    • will be refinanced before the Yield Maintenance Period End Date, or
    • is a fixed rate MBS Mortgage Loan with an Issue Date before April 1, 1999.
• Part IV, Chapter 1: Pricing, Fees, and Prepayment Premiums:  Reorganized and clarified to prohibit a Prepayment Premium waiver unless
  • the Portfolio Mortgage Loan will be refinanced as a Choice Refinance Loan, and
  • you comply with Part III, Chapter 18: Choice Refinance Loans, Section 1803: Payment Premiums.

Questions

Please contact the Multifamily Trading Desk with any questions.