FNMA starting today will require reserves to be calculated differently than in the past. Previously they counted a certain number of months PITI for each property as reserves. Now they will use a percentage of the Unpaid Principal Balance (UPB) of each loan.

The percentages are based on the number of financed properties:

2% of the aggregate UPB if the borrower has one to four financed properties,

4% of the aggregate UPB if the borrower has five to six financed properties, or

6% of the aggregate UPB if the borrower has seven to ten financed properties (DU only).

The aggregate UPB calculation does not include the mortgages and HELOCs that are on the subject property, the borrower's principal residence, properties that are sold or pending sale, and accounts that will be paid by closing (or omitted in DU on the online loan application).