Training and Resources for Managing the Quality of Environmental and Property Condition Third Party Reports
April 1, 2013
The quality and completeness of third party reports for appraisal, environmental, property condition, and construction directly impacts the loan production and underwriting process. They also affect our ability to provide timely quotes and rate-locks. We continue to develop resources to help you manage report quality and provide information to you and your appraisal, engineering and environmental experts in the most effective way. That’s why we’re providing a new training program and new third party report resources.
Consultant Day: Environmental and Property Condition Report Training
We are excited to announce a targeted one day training session for Seller/Servicers and their consultants. On June 13, we are hosting training at our McLean, Virginia, headquarters The Consultant Day: Environmental and Property Condition Report Training will provide the basics for the successful completion of environmental and property condition reports. The training will summarize the report scope requirements and address the common pitfalls that delay our acceptance of some reports.
This special training will only be available to targeted attendees on site. Attendance will be limited to the following:
- The individual(s) most responsible for report quality and consultant retention at all Program Plus, Targeted Affordable Housing (TAH) and Seniors Housing Seller/Servicers.
- The primary consulting firms (environmental and property condition) used by our Seller/Servicers.
Instructions for registering for this training will follow later. However when registering for the training, Seller/Servicers will be asked to list the consulting firms and individuals they would like to attend. Due to space limitations, we are anticipating the need to limit consultant attendance to one or two representatives for each firm listed by Seller/Servicers.
Third Party Reporting Resource Section
We created a new Third Party Reporting resource section on the Originate & Underwrite page of our website. This new section contains all the related best practices and new resources for review and evaluation of appraisal, environmental and property condition reports. There are separate sections for Program Plus and Targeted Affordable Housing Seller/Servicers.
New Environmental and Property Condition Report Review Resources
The Third Party Reporting Resource section includes three new review aids. Seller/Servicers can use these review aids during the underwriting process to review the quality and completeness of environmental and property condition reports before submitting the underwriting package.
- Environmental Reports Review Aid (New): This aid may be used in conjunction with the Property Condition and Environmental Reports Best Practices when reviewing environmental reports.
- Property Condition Reports Review Aid (New): This aid may be used in conjunction with the Property Condition and Environmental Reports Best Practices when reviewing property condition reports.
- Equivalent Experience and Expertise Certificate (New): We recognize that there are consultants who, despite not meeting all of the Freddie Mac Multifamily Seller/Servicer Guide(Guide) qualification requirements, are trusted by our Seller/Servicers, and are experienced and possess sufficient expertise to undertake quality inspections and prepare acceptable reports. With this in mind, we developed the Certificate of Equivalent Experience and Expertise. Utilizing the certificate, Seller/Servicers may retain a consultant that does not meet the Guide requirements for experience and education without obtaining our prior approval. With this certificate, Seller/Servicers are taking on the responsibility of qualifying consultants based on their alternative qualifications which must be described. Certificates need to be uploaded to the Document Management System (DMS) when the report is submitted to Freddie Mac each time a non-qualified consultant is used.
Third Party Reporting Best Practices Forums
We continue to support best practices for third party reports by hosting the Freddie Mac Multifamily Appraisal LinkedIn group and quarterly Best Practice Forum conference calls. If you are not involved in these activities, please contact the following: