Fannie Mae Enhances Multifamily MBS Disclosure - Update

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MBS News and Announcements

Fannie Mae Enhances Multifamily MBS Disclosure - Update

The Structured ARM Fixed Principal Payment file has been updated below

Beginning in February 2012, Fannie Mae will introduce a number of enhancements to the at-issuance disclosure we provide for our Multifamily MBS. The following fields will be available on the New Issues Loan and Collateral Statement (NILCS), the Schedule of Pool and Loan Information (Schedule A) for individual MBS, as well as the user interface and the Download All and Export files on the Multifamily Securities Locator Service:

  • Property Name and Property Street Address of the mortgaged property securing the underlying loan.
  • Debt Service Coverage Ratio (IO/ARM) - The ratio of Underwritten Net Operating Income to the highest potential debt service payment required under the loan. Refer to the DSCR Primer for product-specific information and sample calculations.
  • Phase Year - The calendar year in which construction of the mortgaged property phase was completed and a Certificate of Occupancy was issued.
  • Phase Year Number of Units - The number of residential units within the identified phase of the mortgaged property.
  • Structured ARM Fixed Principal Payment Amount - The fixed principal amount that is included in the principal and interest payment for amortizing or partial interest-only Structured ARM Mortgage Loans. The Structured ARM Fixed Principal Payment Amount for previously issued Multifamily MBS backed by Structured ARMs is available as a footnote on the Schedule of Pool and Loan information for each MBS, and can also be accessed here.
  • Green Financing - The type of green financing program, if any, pursuant to which the underlying loan was originated.
  • Green Building Certification - The type of designation, if any, awarded by a third-party certifying that the mortgaged property meets defined criteria for energy and/or water efficiency, waste management, indoor air quality, and/or other environmental sustainability measures.

In addition, a new section for footnotes that are published on the Schedule of Pool and Loan Information will be included on the NILCS file. Please review the NILCS file layout for the enhanced file layout.

Beginning with March 2012 MBS issuances, the Debt Service Coverage Ratio (DSCR) disclosed at issuance will be the actual, rather than the underwritten DSCR. This change aligns with market practices, and does not impact securities issued prior to March 2012. For securities issued prior to March 2012, Fannie Mae only disclosed the underwritten DSCR at issuance. Refer to the DSCR Primer for product-specific information and sample calculations.

Investors may contact our Fixed-Income Securities Helpline at 1-800-BEST-MBS (1-800-237-8627) if they have questions about this announcement.

Page originally published: 12/20/11

Page updated: 01/31/12