September 15, 2020
We posted a new Refinance Test (2020Q3) effective for all new loans, except for Small Balance Loans, starting Tuesday, September 15.
Changes to the Refinance Test include adding a sensitivity analysis functionality. The new function is able to test various interest-only periods automatically and output the passing UPB associated with it. The new function will help to determine the “max IO” period.
The implied 10-year forward rate is unchanged at 3.30%. With better market data, the updated test is getting less restrictive than the last release.
To access the new Refinance Test, visit our Refinance Test and Resources page.
An updated version of the Affordability Test is also available. This resource provides you with estimated affordability profiles.
Please contact your Freddie Mac Multifamily representative with any questions.
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