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Mortgage Transaction Narrative Analysis – Best Practices and New Tool

June 19, 2012

As part of the underwriting package for all mortgages, we require the completion of a mortgage transaction narrative analysis, commonly referred to in the underwriting process as a narrative. The required components for inclusion in the content of the narrative are set forth in the underwriting package requirements Section 55.2 of the Freddie Mac Multifamily Seller/Servicer Guide.

We recognize that the narrative requirements are based on a broad range of information gathered from multiple sources. To provide you with best practices and sample language for use in organizing and explaining the narrative information in your underwriting package, we’re providing a Mortgage Transaction Narrative Analysis – Best Practices document. In addition to offering best practices, you can also use the language in the document as the basis for your narrative. We’re providing this template approach in order to make it easier for you to complete the narrative, but its use is not required. If you previously used any other template for the narrative, we recommend that you now use this new version.

If you are a Seniors Housing Seller/Servicer, please contact your Freddie Mac Seniors Housing representative for guidance on how to complete the mortgage transaction narrative analysis for a Seniors Housing deal.

Due to the scope and length of the information involved, the narrative information has not been functionally incorporated into the Loan Submission Template (LST). The current v 1.4 of the LST has a placeholder tab in the Excel template as a reminder to you for the completion of the narrative requirement.

If you have questions related to the use of the document or about our requirements for the Mortgage Transaction Narrative Analysis, please contact your Multifamily underwriter.

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