Agency COVID Reserves Lowered - Breakdown of the New Updates
Looks like the big boys have regained some confidence in the reopening of the US. Here are the main changes currently in place for Fannie/Freddie. They have also reduced treasury floors by a small margin. 

**Fannie Mae Tier 2:**
	1. $3MM or less: 18 months P&amp;I
	2. Greater than $3MM: 12 months P&amp;I
		* Acquisitions: 6 months, calculated on an IO basis
		* Refi: 12 months, calculated on an IO basis; or if LTV is less than 70%: 6 months, calculated on an IO basis

**Fannie Mae Tier 3: 6 months P&amp;I**
	1. Acquisitions greater than $3MM: 6 months waived
	2. Refi greater than $3MM: 6 months, calculated on an IO basis
	* Reserve payments are held for a minimum of 6 months plus 1 additional quarter after property attains an actual amortizing DSCR equal to the min. UW DSCR 

**Fannie Mae Tier3/Tier4/Student:** 12 months P&amp;I

**Freddie Mac**
	- Refinance: 9 months of debt service (Waived if less than 60% LTV and greater than 1.45x DSCR)
	- Acquisition: 6 months debt service (Waived if less than 60% LTV and greater than 1.45x DSCR)
[{"id": "grxwfoq", "text": "They either regained confidence or realized debt funds have been wayyyy more competitive", "replies": [], "depth": 1}, {"id": "grxzovv", "text": "Losing business to banks and Life COs will do that. Closing a Fannie loan today but most others are going bank or Life Co.", "replies": [{"id": "gry0dfb", "text": "I have seen the same thing. A huge portion of our usual agency loans have been going CMBS or Bank. I'm interested to see how this plays out", "replies": [], "depth": 2}], "depth": 1}, {"id": "gry081t", "text": "Disclaimer: After years of posting on reddit I still have no grasp on formatting...", "replies": [], "depth": 1}, {"id": "gryfmf5", "text": "Watching these things change in real-time has been very interesting. We closed two large acquisition loans back in April/May 2020 and that sponsor has \\~ $5MM in combined COVID escrows that should really be \\~ $3MM since both were FT IO.", "replies": [], "depth": 1}]