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Affordability Test Updates

April 7, 2016

We have updated our Affordability Test tool to better identify uncapped volume for rural and small properties, as well as those properties in Very High Cost markets.

The updated Affordability Test is for Sellers to determine uncapped volume eligibility for estimation purposes.

This new version includes:

  • Designating Santa Clara, CA as a Very High Cost market.
  • Applying new rules for small properties and rural areas:
    • For small properties, exclude the pro rata portion of the loan amount based on the percentage of units affordable at 80% AMI or below in standard and high cost markets, and 100% AMI or below in very high cost markets
    • For rural areas, exclude the pro rata portion of the loan amount based on the percentage of units affordable at 80% AMI or below. Very high cost market adjustments are not available.
  • Adding a drop-down input for the census tract.
  • Adding a percentage breakdown for small property and rural in the “Capped/Uncapped Breakdown” section. If the census tract belongs to a rural location, then the tract will be highlighted in green; otherwise it will be highlighted in red.
  • Linking the “Select Census Tract” input to the FFIEC Geocoding System so that the user can retrieve the value after entering the address.

The results are only intended to attain preliminary estimates of uncapped volume and have no bearing on whether Freddie Mac will purchase the loan. Final results will be determined solely by Freddie Mac and may be different from the preliminary estimates calculated by the test.

Also, please note that we have added new Affordability Test Directions.

For more information, visit the Affordability Test and Resources page or contact your Freddie Mac Production Representative.


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