Fannie Mae to Publish Quarterly Property Financial Performance Information for Multifamily Mortgage Backed Securities (MBS)

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MBS News and Announcements

Quarterly Property Financial Performance Data To Be Disclosed

In response to investor requests for additional data, we are making several changes to provide more frequent updates to property financial performance information for some DUS MBS.  Beginning in third quarter 2012, we will provide the following new data elements on a quarterly basis:

  • Quarterly property net operating income (“NOI”);
  • Quarterly debt service coverage ratio (“DSCR”);
  • Quarterly physical occupancy;
  • The most-recent property inspection rating and;
  • The property inspection rating date

These changes will appear in the Multifamily Securities Locator Service (MFSLS) for all multifamily product types including DUS MBS, Negotiated Transactions MBS, Credit Facility and Bulk Delivery MBS.  The addition of quarterly property financial performance disclosure data will serve to bolster liquidity in the primary and secondary market for our Multifamily MBS products by providing greater transparency into the performance of the properties backing the loans in our Multifamily securities.

The enhanced disclosures will not become available for all pools simultaneously. The table below provides information regarding when the disclosures are anticipated to become available.

The availability of data and the timing of publication are contingent on the lender’s ability to provide the information.  Fannie Mae generally receives this data within 75 days after the quarter-end date.  Fannie Mae will disclose the data on the 4th business day of the month following receipt of the information from the servicer.  For example, if Fannie Mae receives second quarter data for a pool during August, that pool’s information will be available on MFSLS on the 4th business day of September.  The MFSLS will display the most current quarterly or annual data available, replacing the previous period’s data.   

Table 1:  Timeline for the Availability of Quarterly DSCR, NOI, and Other Information

 

 

Beginning in  September 2012

Late Fourth Quarter 2012 and Early First Quarter 2013

For DUS MBS1

Second Quarter 2012 data will become available.

                     -

For DUS MBS backed by Credit Facilities and Bulk Deliveries

                   -

Second Quarter 2012 data will become available.


Most small loans and Cooperative loans do not have quarterly reporting requirements and will continue to report annually.  Small loans are defined as having an original principal balance of under $3M (under $5M in certain high-cost MSAs).

 

For a list of the new data elements to be disclosed please refer to our latest edition of MF Commentary

Investors may contact Fannie Mae’s Fixed-Income Securities Investor Helpline at 1-800-237-8627 or via email with any questions.

 

 Originally Published: 8/21/12