Fannie Mae Introduces Multifamily Credit Risk Transfer Resources

August 26, 2019


Fannie Mae has released the following helpful resources that provide insights into our Multifamily credit risk management capabilities and risk transfer offerings, which complement our existing Delegated Underwriting and Servicing (DUS®) lender credit risk sharing program.

Our Multifamily Credit Risk Management Presentation provides transparency into how we manage credit risk on our multifamily book of business. The presentation is a comprehensive overview of our industry-leading framework that fosters historically low delinquencies and credit losses. Learn about our credit risk standard over the life of the loans we acquire, including underwriting, performance management, and loss mitigation. Learn more about the framework here.

Since 2016, Fannie Mae has complemented its DUS program by transferring a portion of the credit risk on multifamily mortgages through its Multifamily Credit Insurance Risk Transfer (MCIRT) program. As of June 30, 2019, $48 billion in multifamily mortgages, or 15% of the loans in the company’s multifamily guaranty book of business as measured by unpaid principal balance, were covered by a MCIRT transaction. To support the growing MCIRT program and educate market participants on MCIRT offerings, we have developed webpages dedicated to this product. On these webpages, we provide details on the typical elements of an MCIRT deal as well as insight on how the deals are structured and how losses are allocated. This information can be found on the Multifamily Credit Insurance Risk Transfer webpage.

The Multifamily Loan Performance Data is designed to give market participants information that can be used to further analyze our loan performance history. The initial publication of the MFLPD includes performance data on over 46,000 loans acquired between January 1, 2000, and December 31, 2018, representing over 80% of acquisitions during the time period. Resources to help users navigate the data and instructions on how to access the dataset can be found on the Multifamily Loan Performance Dataset webpage.

We will host a webinar on Wednesday, August 28, at 10 a.m. EDT to walk through some of the details of the data and credit risk management framework. If you would like to receive registration email for the webinar and updates on our multifamily credit risk transfer activities, please sign up to receive notifications here.

To learn more about our new webpages, or if you are an institutional investor who would like further information, please contact us.