Guide Update 22-07: Refinance Risk Analysis
Effective for Mortgage Loans Committed on or after May 2, 2022, the Refinance Risk Analysis Base Assumptions were updated.
- Clarified that the Refinance Risk Analysis calculates the Borrower’s ability to refinance the Mortgage Loan in the first year after the Maturity Date.
- Updated the Income Growth Rate Base Assumption for Year 2 through the Mortgage Loan term to be either:
- 2% for a
- Student Housing Property,
- Dedicated Student Housing Property,
- Seniors Housing Property,
- Multifamily Affordable Housing Property,
- Structured Transaction, and
- Mortgage Loan secured by multiple Properties; or
- for all other Mortgage Loans, use the rent growth published in DUS Gateway for the Property’s submarket.
- 2% for a
- DUS Gateway’s rent growth is based on Fannie Mae’s portfolio and more accurately assesses refinance risk by:
- reflecting current market conditions;
- considering the cyclical multifamily real estate market; and
- differentiating market and submarket performance.
Please contact the Fannie Mae Deal Team with any questions.