Interim Multifamily Seller/Servicer Guide Chapters Now Available
April 20, 2012
Today, Freddie Mac is posting seven asset management interim chapters for the Freddie Mac Multifamily Seller/Servicer Guide on the Guide Bulletins page of FreddieMac.com. These interim chapters are related to just the recent changes we’ve made to assessments. We are also providing you with updated versions of the Directory and the Glossary.
Please note that these changes are effective immediately. You must retain and use these versions of all seven interim chapters, the Directory and the Glossary until they are incorporated into the Guide on AllRegs in the next scheduled Guide Bulletin.
New Assessment Forms
The Property Reporting System (PRS) launch on April 2, 2012, has changed our annual and quarterly reporting requirements. As a reminder, April 27, 2012, is the submission deadline for inspections due in the first quarter. We realize that you just started using PRS; as a result, we did not want to wait until the next scheduled Guide Bulletin to provide guidance on some of the following new requirements:
- Adding a minimum number of either 20 or 25 photographs, depending on the number of units at the property, that must accompany the new Annual Inspection Form (AIF) found in PRS.
- Establishing a maximum number of 20 occupied and 20 vacant units that must be inspected.
We have continually updated the Asset Management Resources page with the latest PRS materials to assist you in understanding our annual and quarterly reporting requirements. In particular, you should continue to review the PRS Frequently Asked Questions. The updated Directory should be an improvement with the inclusion of the most recent Asset Management contact information.
Risk Rating Changes
In February, we announced our new risk-rating methodology that replaced our watchlist criteria. We no longer use the Moderate, High, and Critical Watchlist nomenclature. All loans now have a risk-rating affiliated with them. The Glossary and PRS translates the legacy watchlist criteria to the new risk-ratings, which are expressed in numbers (1-10).
With the PRS implementation, you should be actively reviewing your pipeline to ensure you have an understanding of the risk rating of loans that are due for an assessment. It is anticipated that in a future release of PRS, Servicers will have the ability to download reports that will highlight those loans that have had a change in risk-rating. Risk ratings will potentially change on a quarterly basis, but no more frequently than quarterly.