12 C.F.R. § 1240.33
Adjusted MTMLTV means, with respect to a single-family mortgage exposure and as of a particular time, the amount equal to:
Approved insurer means an insurance company that is currently approved by an Enterprise to guarantee or insure single-family mortgage exposures acquired by the Enterprise.
Cancelable mortgage insurance means a mortgage insurance policy that, pursuant to its terms, may or will be terminated before the maturity date of the insured single-family mortgage exposure, including as required or permitted by the Homeowners Protection Act of 1998 (12 U.S.C. 4901 ).
Charter-level coverage means mortgage insurance that satisfies the minimum requirements of the authorizing statute of an Enterprise.
Cohort burnout means the number of refinance opportunities since the loan age of the single-family mortgage exposure was 6, categorized into ranges pursuant to the instructions set forth on Table 1 to this paragraph (a).
Coverage percent means the percent of the sum of the unpaid principal balance, any lost interest, and any foreclosure costs that is used to determine the benefit or other coverage under a mortgage insurance policy.
COVID-19-related forbearance means a forbearance granted pursuant to section 4022 of the Coronavirus Aid, Relief, and Economic Security Act or under a program established by FHFA to provide forbearance to borrowers adversely impacted by COVID-19.
Days past due means the number of days a single-family mortgage exposure is past due.
Debt-to-income ratio (DTI) means the ratio of a borrower's total monthly obligations (including housing expense) divided by the borrower's monthly income, as calculated under the Guide of the Enterprise.
Deflated HPI means, as of a particular time, the amount equal to:
Guide means, as applicable, the Fannie Mae Single Family Selling Guide, the Fannie Mae Single Family Servicing Guide and the Freddie Mac Single-family Seller/Servicers Guide.
Guide-level coverage means mortgage insurance that satisfies the requirements of the Guide of the Enterprise with respect to mortgage insurance that has a coverage percent that exceeds charter-level coverage.
Interest-only (IO) means a single-family mortgage exposure that requires only payment of interest without any principal amortization during all or part of the loan term.
Loan age means the number of scheduled payment dates since the origination of a single-family mortgage exposure.
Loan-level credit enhancement means:
Loan documentation means the completeness of the documentation used to underwrite a single-family mortgage exposure, as determined under the Guide of the Enterprise.
Loan purpose means the purpose of a single-family mortgage exposure at origination.
Long-term HPI trend means, as of a particular time, the amount equal to: 0.66112295e(0.002619948*t).
Where t = the number of quarters from the first quarter of 1975 to and including the end of the preceding calendar quarter and where the first quarter of 1975 is counted as one.
Long-term trend departure means, as of a particular time, the percent amount equal to-
MI cancelation feature means an indicator for whether mortgage insurance is cancelable mortgage insurance or non-cancelable mortgage insurance, assigned pursuant to the instructions set forth on Table 1 to this paragraph (a).
Modification means a permanent amendment or other change to the interest rate, maturity date, unpaid principal balance, or other contractual term of a single-family mortgage exposure or a deferral of a required payment until the maturity or earlier payoff of the single-family mortgage exposure. A modification does not include a repayment plan with respect to any amounts that are past due or a COVID-19-related forbearance.
Modified re-performing loan (modified RPL) means a single-family mortgage exposure (other than an NPL) that is or has been subject to a modification, excluding any single-family mortgage exposure that was not 60 or more days past due at any time in a continuous 60-calendar month period that begins at any time after the effective date of the last modification.
Months since last modification means the number of scheduled payment dates since the effective date of the last modification of a single-family mortgage exposure.
Mortgage concentration risk means the extent to which a mortgage insurer or other counterparty is exposed to mortgage credit risk relative to other risks.
MTMLTV means, with respect to a single-family mortgage exposure, the amount equal to:
Non-cancelable mortgage insurance means a mortgage insurance policy that, pursuant to its terms, may not be terminated before the maturity date of the insured single-family mortgage exposure.
Non-modified re-performing loan (non-modified RPL) means a single-family mortgage exposure (other than a modified RPL or an NPL) that was previously an NPL at any time in the prior 48 calendar months.
Non-performing loan (NPL) means a single-family mortgage exposure that is 60 days or more past due.
Occupancy type means the borrowers' intended use of the property securing a single-family mortgage exposure.
Original credit score means the borrower's credit score as of the origination date of a single-family mortgage exposure.
OLTV (original loan-to-value) means, with respect to a single-family mortgage exposure, the amount equal to:
Origination channel means the type of institution that originated a single-family mortgage exposure, assigned pursuant to the instructions set forth on table 1 to this paragraph (a).
Participation agreement means, with respect to a single-family mortgage exposure, any agreement between an Enterprise and the seller of the single-family mortgage exposure pursuant to which the seller retains a participation of not less than 10 percent in the single-family mortgage exposure.
Past due means, with respect to a single-family mortgage exposure, that any amount required to be paid by the borrower under the terms of the single-family mortgage exposure has not been paid.
Payment change from modification means the amount, expressed as a percent, equal to:
Performing loan means any single-family mortgage exposure that is not an NPL, a modified RPL, or a non-modified RPL.
Previous maximum days past due means the maximum number of days a modified RPL or non-modified RPL was past due in the prior 36 calendar months.
Product type means an indicator reflecting the contractual terms of a single-family mortgage exposure as of the origination date, assigned pursuant to the instructions set forth on Table 1 to this paragraph (a).
Property type means the physical structure of the property securing a single-family mortgage exposure.
Refinance opportunity means, with respect to a single-family mortgage exposure, any calendar month in which the Primary Mortgage Market Survey (PMMS) rate for the month and year of the origination of the single-family mortgage exposure exceeds the PMMS rate for that calendar month by more than 50 basis points.
Refreshed credit score means the borrower's most recently available credit score.
Single-family countercyclical adjustment means, as of a particular time, zero percent except:
Streamlined refi means a single-family mortgage exposure that was refinanced through a streamlined refinance program of an Enterprise, including the Home Affordable Refinance Program, Relief Refi, and Refi-Plus.
Subordination means, with respect to a single-family mortgage exposure, the amount equal to the original unpaid principal balance of any second lien single-family mortgage exposure divided by the lesser of the appraised value or sale price of the property that secures the single-family mortgage exposure.
Table 1 to Paragraph (a)-Permissible Values and Additional Instructions
| Defined term | Permissible values | Additional instructions |
| Cohort burnout | "No burnout," if the single-family mortgage exposure has not had a refinance opportunity since the loan age of the single-family mortgage exposure was 6. | High if unable to determine. |
| "Low," if the single-family mortgage exposure has had 12 or fewer refinance opportunities since the loan age of the single-family mortgage exposure was 6 | ||
| "Medium," if the single-family mortgage exposure has had between 13 and 24 refinance opportunities since the loan age of the single-family mortgage exposure was 6 | ||
| "High," if the single-family mortgage exposure has had more than 24 refinance opportunities since the loan age of the single-family mortgage exposure was 6 | ||
| Coverage percent | 0 percent <= coverage percent <= 100 percent | 0 percent if outside of permissible range or unable to determine. |
| Days past due | Non-negative integer | 210 if negative or unable to determine. |
| Debt-to-income (DTI) ratio | 0 percent < DTI < 100 percent | 42 percent if outside of permissible range or unable to determine. |
| Interest-only (IO) | Yes, no | Yes if unable to determine. |
| Loan age | 0 <= loan age <= 500 | 500 if outside of permissible range or unable to determine. |
| Loan documentation | None, low, full | None if unable to determine. |
| Loan purpose | Purchase, cashout refinance, rate/term refinance | Cashout refinance if unable to determine. |
| MTMLTV | 0 percent < MTMLTV <= 300 percent | If the property securing the single-family mortgage exposure is located in Puerto Rico or the U.S. Virgin Islands, use the FHFA House Price Index of the United States. |
| If the property securing the single-family mortgage exposure is located in Hawaii, use the FHFA Purchase-only State-level House Price Index of Guam. | ||
| If the single-family mortgage exposure was originated before 1991, use the Enterprise's proprietary housing price index. | ||
| Use geometric interpolation to convert quarterly housing price index data to monthly data. | ||
| 300 percent if outside of permissible range or unable to determine. | ||
| Mortgage concentration risk | High, not high | High if unable to determine. |
| MI cancellation feature | Cancellable mortgage insurance, non-cancellable mortgage insurance | Cancellable mortgage insurance, if unable to determine. |
| Occupancy type | Investment, owner-occupied, second home | Investment if unable to determine. |
| OLTV | 0 percent < OLTV <= 300 percent | 300 percent if outside of permissible range or unable to determine. |
| Original credit score | 300 <= original credit score <= 850 | If there are credit scores from multiple credit repositories for a borrower, use the following logic to determine a single original credit score: |
| . If there are credit scores from two repositories, take the lower credit score. | ||
| . If there are credit scores from three repositories, use the middle credit score. | ||
| . If there are credit scores from three repositories and two of the credit scores are identical, use the identical credit score. | ||
| If there are multiple borrowers, use the following logic to determine a single original credit score: | ||
| . Using the logic above, determine a single credit score for each borrower. | ||
| . Select the lowest single credit score across all borrowers. | ||
| The original credit score for the single-family mortgage exposure is 680 if the Enterprise has verified that no borrower has a credit score at any of the three repositories. | ||
| 600 if outside of permissible range or unable to determine. | ||
| Origination channel | Retail, third-party origination (TPO) | TPO includes broker and correspondent channels. TPO if unable to determine. |
| Payment change from modification | -80 percent < payment change from modification < 50 percent | If the single-family mortgage exposure initially had an adjustable or step-rate feature, the monthly payment after a permanent modification is calculated using the initial modified rate. |
| 0 percent if unable to determine. -79 percent if less than or equal to -80 percent. | ||
| 49 percent if greater than or equal to 50 percent. | ||
| Previous maximum days past due | Non-negative integer | 181 months if negative or unable to determine. |
| Product type | "FRM30" means a fixed-rate single-family mortgage exposure with an original amortization term greater than 309 months and less than or equal to 429 months "FRM20" means a fixed-rate single-family mortgage exposure with an original amortization term greater than 189 months and less than or equal to 309 months "FRM15" means a fixed-rate single-family mortgage exposure with an amortization term less than or equal to 189 months "ARM1/1" is an adjustable-rate single-family mortgage exposure that has a mortgage rate and required payment that adjust annually | Product types other than FRM30, FRM20, FRM15 or ARM 1/1 should be assigned to FRM30. Use the post-modification product type for modified mortgage exposures. ARM 1/1 if unable to determine. |
| Property type | 1-unit, 2-4 units, condominium, manufactured home | Use condominium for cooperatives. 2-4 units if unable to determine. |
| Refreshed credit score | 300 <= refreshed credit score <= 850 | If there are credit scores from multiple credit repositories for a borrower, use the following logic to determine a single refreshed credit score: |
| . If there are credit scores from two repositories, take the lower credit score. | ||
| . If there are credit scores from three repositories, use the middle credit score. | ||
| . If there are credit scores from three repositories and two of the credit scores are identical, use the identical credit score. | ||
| If there are multiple borrowers, use the following logic to determine a single Refreshed Credit Score: | ||
| . Using the logic above, determine a single credit score for each borrower. | ||
| . Select the lowest single credit score across all borrowers. | ||
| 600 if outside of permissible range or unable to determine. | ||
| Streamlined refi | Yes, no | No if unable to determine. |
| Subordination | 0 percent <= Subordination <= 80 percent | 80 percent if outside permissible range. |
Table 6 to Paragraph (d)(2): Risk Multipliers
| Risk factor | Value or range | Single-family segment | |||
| Performing loan | Non- modified RPL | Modified RPL | NPL | ||
| Loan Purpose | Purchase | 1.0 | 1.0 | 1.0 | |
| Cashout refinance | 1.4 | 1.4 | 1.4 | ||
| Rate/term refinance | 1.3 | 1.2 | 1.3 | ||
| Occupancy Type | Owner-occupied or second home | 1.0 | 1.0 | 1.0 | 1.0 |
| Investment | 1.2 | 1.5 | 1.3 | 1.2 | |
| Property Type | 1-unit | 1.0 | 1.0 | 1.0 | 1.0 |
| 2-4 unit | 1.4 | 1.4 | 1.3 | 1.1 | |
| Condominium | 1.1 | 1.0 | 1.0 | 1.0 | |
| Manufactured home | 1.3 | 1.8 | 1.6 | 1.2 | |
| Origination Channel | Retail | 1.0 | 1.0 | 1.0 | 1.0 |
| TPO | 1.1 | 1.1 | 1.1 | 1.0 | |
| DTI | DTI [LESS THAN]= 25% | 0.8 | 0.9 | 0.9 | |
| 25% [LESS THAN] DTI [LESS THAN]= 40% | 1.0 | 1.0 | 1.0 | ||
| DTI [GREATER THAN]40% | 1.2 | 1.2 | 1.1 | ||
| Product Type | FRM30 | 1.0 | 1.0 | 1.0 | 1.0 |
| ARM1/1 | 1.7 | 1.1 | 1.0 | 1.1 | |
| FRM15 | 0.3 | 0.3 | 0.5 | 0.5 | |
| FRM20 | 0.6 | 0.6 | 0.5 | 0.8 | |
| Subordination | No subordination | 1.0 | 1.0 | 1.0 | |
| 30% [LESS THAN] OLTV [LESS THAN]= 60% and 0% [LESS THAN]subordination [LESS THAN]= 5% | 1.1 | 0.8 | 1.0 | ||
| 30% [LESS THAN] OLTV [LESS THAN]= 60% and subordination [GREATER THAN]5% | 1.5 | 1.1 | 1.2 | ||
| OLTV [GREATER THAN]60% and 0% [LESS THAN]subordination [LESS THAN]= 5% | 1.1 | 1.2 | 1.1 | ||
| OLTV [GREATER THAN]60% and subordination [GREATER THAN]5% | 1.4 | 1.5 | 1.3 | ||
| Loan Age | Loan age [LESS THAN]= 24 months | 1.0 | |||
| 24 months [LESS THAN]loan age [LESS THAN]= 36 months | 0.95 | ||||
| 36 months [LESS THAN]loan Age [LESS THAN]= 60 months | 0.80 | ||||
| Loan age [GREATER THAN]60 months | 0.75 | ||||
| Cohort Burnout | No burnout | 1.0 | |||
| Low | 1.2 | ||||
| Medium | 1.3 | ||||
| High | 1.4 | ||||
| Interest-only | No IO | 1.0 | 1.0 | 1.0 | |
| Yes IO | 1.6 | 1.4 | 1.1 | ||
| Loan Documentation | Full | 1.0 | 1.0 | 1.0 | |
| None or low | 1.3 | 1.3 | 1.2 | ||
| Streamlined Refi | No | 1.0 | 1.0 | 1.0 | |
| Yes | 1.0 | 1.2 | 1.1 | ||
| Refreshed Credit Score for Modified RPLs and Non-modified RPLs | Refreshed credit score [LESS THAN]620 620 [LESS THAN]= refreshed credit score [LESS THAN]640 | 1.6 1.3 | 1.4 1.2 | ||
| 640 [LESS THAN]= refreshed credit score [LESS THAN]660 | 1.2 | 1.1 | |||
| 660 [LESS THAN]= refreshed credit score [LESS THAN]700 | 1.0 | 1.0 | |||
| 700 [LESS THAN]= refreshed credit score [LESS THAN]720 | 0.7 | 0.8 | |||
| 720 [LESS THAN]= refreshed credit score [LESS THAN]740 | 0.6 | 0.7 | |||
| 740 [LESS THAN]= refreshed credit score [LESS THAN]760 | 0.5 | 0.6 | |||
| 760 [LESS THAN]= refreshed credit score [LESS THAN]780 | 0.4 | 0.5 | |||
| Refreshed credit score [GREATER THAN]= 780 | 0.3 | 0.4 | |||
| Payment Change from Modification | Payment change [GREATER THAN]= 0% | 1.1 | |||
| -20% [LESS THAN]= payment change [LESS THAN]0% | 1.0 | ||||
| -30% [LESS THAN]= payment change [LESS THAN] -20% | 0.9 | ||||
| Payment change [LESS THAN] -30% | 0.8 | ||||
| Previous Maximum Days Past Due | 0-59 days | 1.0 | 1.0 | ||
| 60-90 days | 1.2 | 1.1 | |||
| 91-150 days | 1.3 | 1.1 | |||
| 151+ days | 1.5 | 1.1 | |||
| Refreshed Credit Score for NPLs | Refreshed credit score [LESS THAN]580 | 1.2 | |||
| 580 [LESS THAN]= refreshed credit score [LESS THAN]640 | 1.1 | ||||
| 640 [LESS THAN]= refreshed credit score [LESS THAN]700 | 1.0 | ||||
| 700 [LESS THAN]= refreshed credit score [LESS THAN]720 | 0.9 | ||||
| 720 [LESS THAN]= refreshed credit score [LESS THAN]760 | 0.8 | ||||
| 760 [LESS THAN]= refreshed credit score [LESS THAN]780 | 0.7 | ||||
| Refreshed credit score [GREATER THAN]= 780 | 0.5 | ||||
12 C.F.R. §1240.33