Quarterly Update to the Multifamily Refinance Test
October 14, 2013
Freddie Mac Multifamily is providing our quarterly update to the Refinance Test, reflecting the quarterly update of market and interest rate information.
New Multifamily Refinance Test Capabilities
Effective with the October 14 version of the Refinance Test, you will now be able to use the following new capabilities while performing the test:
- Directly input Concessions and Bad Debt information.
- Run ARM or floating rate loans directly (no longer designed to use fixed equivalent note)
- Size secondary mortgage debt first if available, rather than always sizing primary liens.
New Test Now Available – Required for New Loans
Effective October 14
- The new version of the Refinance Test is required for new deals as of October 14, 2013.
- The current version [dated September 3] of the Refinance Test will continue to apply to all loans that are under application with the Seller/Servicer (money up) and are rate locked by October 31.
- Both versions of the refinance test will remain available until October 31 on our Multifamily Refinance Test page, which is available through a Quick Link on the Originate & Underwrite page.
Using the Results of the Refinance Test
As always, when a loan does not pass the test, this is simply an indicator for you to discuss the parameters sooner with your underwriter. It does not necessarily mean Freddie Mac will not buy the loan.