Multifamily DUS Prepayment History
To provide market participants with transparency into the performance of our loans, Fannie Mae provides historical prepayment information for its Multifamily Delegated Underwriting and Servicing (DUS®) loans. The prepayment information offers performance details to help investors analyze DUS prepayment behavior.
The Multifamily DUS Prepayment History includes DUS and Non-DUS loans from active lenders in the following prepayment segments.
- Standard: DUS fixed-rate MBS and cash loans with yield maintenance terms ending six months prior to maturity
- SARM: DUS structured adjustable-rate (SARM) MBS and cash loans with an initial 12-month lockout followed by 1% prepayment premium
- Non-Standard: DUS fixed-rate MBS and cash loans with other yield maintenance terms (e.g., 5/3, 7/5, 10/7, 18/15, 30/15)
- ARM 7-6: DUS 7-year, adjustable-rate MBS and cash loans with a maximum lifetime interest rate capped at 6% and an initial 12-month lockout followed by 1% prepayment premium
- Fixed Rate, Declining Premium: DUS 10-year, fixed-rate MBS and cash loans with a percentage of UPB prepayment provision of 5%-5%-4%-4%-3%-3%-2%-2%-1%-1%
The Prepayment History does not include loans categorized as: Aggregation, Bulk Deliveries, Credit Enhancements, Credit Facilities, DMBS, Funded Forwards, Hybrid ARMs, Inactive Non-DUS Lenders, Negotiated Transactions, New Prior Approval, and Whole Loan REMICs.
Multifamily DUS Prepayment History information is accessible through Fannie Mae's free Data Dynamics® analytical platform. Data Dynamics provides market participants with the ability to evaluate and analyze the detailed prepayment information for our multifamily DUS loans.
The information provided shows both active loans and liquidated loans acquired since January 20001 and includes information on DUS loans with voluntary and involuntary prepayment activity, as well as loans that have paid at maturity. Data Dynamics displays the prepayment information by either loan count or original balance and provides the ability to view the data by a single cohort or a combination of two cohorts simultaneously with additional filter selections to further isolate the loan population. The cohort options include asset class, loan size, original loan term, original loan-to-value (LTV), state, and vintage. By offering a selection of cohorts along with a myriad of filters, users can tailor the prepayment information that best suits their needs. For example, a user could create a report that shows the state cohort, which is further narrowed by selecting certain states from the filter.
Twelve standard filter selections are available.
|Asset Class||Loan Size|
|Debt Service Coverage Ratio (DSCR)||Original Loan Term|
|DUS Prepayment Outcomes||Original Loan-to-Value (LTV)|
|Interest Type||Origination Vintage|
|Loan Age||Prepayment Segment2|
|Loan Product Type||State|
Furthermore, Data Dynamics allows customization with additional filters as an overlay to the standard filter options. All analyses are viewable by cohort(s) as well as by either original balance ($) or loan count.
|Acquisition Unpaid Principal Balance (UPB)||Affordable Housing Type|
|Amortization Type||Metropolitan Statistical Area (MSA)|
|Current Note Rate||Original Note Rate|
|Lien Position||Underwriting Physical Occupancy|
|Loan Ever 60+ Days Delinquent||Unit Range|
|Liquidation Type||Year Built|
The Multifamily DUS Prepayment History information is generally updated two weeks after the end of the following quarter. For example, the first quarter (January to March) information would be published by approximately July 14. Prepayments that occur after quarter end, and before the information is updated, will be reflected in the next quarterly update.
Investors, researchers, and other market participants may use this information to analyze the performance of multifamily MBS and cash loans. This information includes prepayment behavior, credit performance, and other multifamily market trends to determine some of the risks associated with an investment in multifamily MBS.
To assist market participants in consuming the multifamily prepayment information, Fannie Mae offers both a User Guide and a Video Tutorial on our website as well as in the Data Dynamics platform. The platform also features the Multifamily Frequently Asked Questions (FAQS) document as well as the Multifamily Glossary, which includes definitions of variables, and footnotes to help better understand the data.
Fannie Mae’s Multifamily MBS Prospectuses provide a detailed description of its Multifamily MBS. For information about a specific MBS, please read both the Multifamily MBS Prospectus and any related Prospectus Supplement, including the Annex A for the particular security.
DUS Disclose®, Fannie Mae’s Multifamily MBS disclosure platform, allows market participants to access the offering documents for a specific MBS by entering its pool number or CUSIP number. DUS Disclose also provides additional detailed information about the composition and performance of our Multifamily securities.
Together, DUS Disclose and Data Dynamics provide an abundance of information on Fannie Mae multifamily securities to assist market participants in making an informed investment decision.
For more information, please contact the Fannie Mae Fixed-Income Securities Helpline at 800-2FANNIE (800-232-6643) or via email.
1 The loan population of DUS Structured Adjustable-Rate Mortgage Loans (SARMs) and ARM 7/6 begins January 2009.
2 Prepayment Segments include: Standard; Non-Standard; SARM; ARM 7-6; Fixed Rate; and, Declining Premium