Fannie Mae Multifamily Credit Risk Transfer: Hurricane Ian Exposure

October 27, 2022

Fannie Mae is committed to supporting renters and borrowers impacted by catastrophic events and providing transparency to our investor partners.

Following a catastrophic event, including weather-related disasters, Fannie Mae relies on servicers to implement our disaster relief policies. We require servicers to assess property damage and the needs of borrowers in order to provide appropriate relief. In addition, whether the event impacts a single building or a large geographical area, each loan is addressed on a case-by-case basis by our internal business teams, as required by our role as the special servicer.

As of October 18, 2022, 0.5% of the active Multifamily Credit Risk Transfer (MCRT) Book Unpaid Principal Balance (UPB) was in the Hurricane Ian impact zone. No MCRT transaction had more than 0.96% of outstanding UPB exposure. Potentially impacted properties are located in Florida, North Carolina, and South Carolina. Based on this preliminary information, Fannie Mae currently anticipates the damage resulting from Hurricane Ian will have minimal impact to the overall MCRT book of business; however, as is our standard process, we will continue to monitor the impact as further information about potentially affected properties is known.

Potential Impact to the MF CRT Book

To provide transparency to the investor community, the table below provides preliminary estimates of potential impacts to our outstanding Multifamily Connecticut Avenue Securities® (MCAS) and Multifamily Credit Insurance Risk Transfer™ (MCIRT™) transactions:

  • Active UPB and loan count by transaction of potential damage from Hurricane Ian, as determined by Fannie Mae based on currently available information1.
MCRT Deal Number of Loans in Ian Damage Area Current UPB % in Ian Damage Area
MCIRT 2016-01 1 0.53%
MCIRT 2017-01 1 0.16%
MCIRT 2018-01 4 0.78%
MCIRT 2018-02 8 0.90%
MCAS 2019-01 1 0.30%
MCIRT 2019-01 2 0.04%
MCIRT 2019-02 4 0.42%
MCIRT 2019-03 6 0.94%
MCAS 2020-01 2 0.74%
MCIRT 2020-01 8 0.96%
MCIRT 2021-01 3 0.22%
MCIRT 2021-02 5 0.79%
MCIRT 2022-01 2 0.13%
TOTAL 47  

1 This analysis provides the estimated unpaid principal balance (UPB) of the underlying properties located in areas that FEMA along with Fannie Mae determined may have experienced hurricane-force winds, storm surge, or rain-driven flood due to Hurricane Ian. The figures were derived based principally on information about geographic areas affected by the storm. The figures do not purport to include all properties that were impacted by the storm and may include properties that were not impacted. In addition, flooding and other storm related hazards continue to cause damage to properties in surrounding areas, so properties that are not currently impacted may be impacted in the future. In addition, it is not certain that all loans associated with properties impacted by the storm will experience losses. These figures have been updated as of October 18, 2022, using September 2022 UPBs.

For questions, please contact the Fannie Mae Investor Help Line at 1-800-232-6643 or by email.