Refinance Risk Analysis | Fannie Mae Multifamily Guide

Guide Update 22-07

: Refinance Risk Analysis

Effective: 05/02/22

Retired: 05/15/23

Associated Documents:

Summary of Changes:

HIGHLIGHTS
Effective for Mortgage Loans Committed on or after May 2, 2022, the Refinance Risk Analysis Base Assumptions were updated.

Primary Changes

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.
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.

Questions

Please contact the Fannie Mae Deal Team with any questions.