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Late Assessment Review Begins September 10

August 12, 2013

The risk-rating process for all mortgages relies on the financial, property condition and borrower compliance assessments you submit on a quarterly and yearly basis. Ultimately, the success of our risk-rating process helps to create liquidity for the Multifamily market. Because of this correlation, we’re introducing a new report to conduct a formal review of all late assessments.

The Late Assessment Report

A late assessment review will be conducted after each submission due date. The first late assessment review begins next month with the August 31 deadline for Quarterly Income and Expense (QIE) submissions.  If your QIE is late, the servicing team in your organization responsible for completing and submitting assessments to Freddie Mac will receive an Excel spreadsheet listing all late assessments. The Late Assessment Report will be sent via email on September 10, 2013.  Your response is due on September 20, 2013.

Late Assessment Review Steps and Requirements

Below is the information necessary for your servicing team to respond to a Late Assessment Report before the specified deadline. Please note that Chapter 40.9 of the Freddie Multifamily Mac Seller/Servicer Guide allows us to assess penalties for assessments that are chronically late without sufficient explanation.

  • Freddie Asset Management will review the late assessment population in the Property Reporting System (PRS) immediately after each due date passes and generate a report using the Late Assessment Report function in PRS.
  • On the tenth day of the month following every key due date, your organization will be emailed the Excel-based Late Assessment Report listing any late assessments.
  • This is the same report that you can run yourself in PRS at any time. However, the Late Assessment Report you receive from Asset Management includes three additional spreadsheet columns. There will be a “Days Outstanding” column already populated by Freddie Mac with information about your reporting. You will need to complete the two other columns, “S/S Comment/Explanation” and “Expected Date of Submission.” You must provide us with a sufficient explanation as to why the assessment is late and the expected date of submission of the assessment
  • Your servicing organization must provide a response in the last two columns of the Late Assessment Report. Your completed report is due by the 20th day of the same month.
  • If the 20th of the month falls on a weekend, the report is due the next business day following the 20th.
  • The completed Late Assessment Report must be emailed to MF_Assset_Performance@Freddiemac.com with a subject line “Late Assessment Report Review.”

Due Date Change and Submission Practices

With the introduction of the Late Assessment Report, you must submit due date changes well before all assessment submission due dates. This practice should prevent unnecessary late assessments.

You should review your assessment pipeline in PRS before each key due date. The goal is to identify assessments that are in the progress of being submitted. These assessments or attachments will be flagged as received in PRS. However, the assessment status will display as Due. We encourage you to complete the submission on these assessments to receive a complete status.

Late Assessment Review and Report Schedule

We will be conducting a late assessment review after each key submission due date based on the schedule below:

Assessment TypeAssessment Due DateEmail Late Assessments Report to ServicersServicer Response Due Date

AIE (Annual Income & Expense)

March 31

April 10

April 20

AIF (Annual Inspection Form) and LMF (Loan Management Form)

March 31

April 10

April 20

AIE

June 1

June 10

June 20

AIF and LMF

June 30

July 10

July 20

QIE – 2nd Quarter

August 31

September 10

September 20

AIF and LMF

September 30

October 10

October 20

QIE – 3rd Quarter

November 30

December 10

December 20

AIF & LMF

December 31

January 10

January 20

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