New Refinance Test Effective Today
June 1, 2016
We posted a new Refinance Test (20162Q) which is effective for all new loans, except for Small Balance Loans, starting June 1.
Changes to the test include market and interest rate data modifications. Since low rates can underrepresent refinance risk, a rates multiplier was introduced that raises the implied 10-year forward rate in the test from 3.44 percent to 3.87 percent. This counteracts what would have been a rate drop in the test. Combined with broader market changes, the impact of this update is very small. In addition, some speed optimizations were implemented.
To access the new Refinance Test, visit our Refinance Test and Resources page. Please contact your Freddie Mac Multifamily representative with any Refinance Test questions.