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MSCI Agency Prepayment Model Updates

The document describes the impact of MSCI Prepayment Model updates for the 2020 Adverse Market Refinance Fee. Initially planned to be effective from September 1, 2020, this additional surcharge has been announced by Fannie Mae and Freddie Mac (Enterprises), to cope with the increasing credit loss related to COVID-19 pandemic. On August 25, 2020, Federal Housing Finance Agency (FHFA) directed the Enterprises to delay the implementation until December 1, 2020 and exempt refinance loans with loan balances below $150,000 from this surcharge.