Freddie Mac Publishes Multifamily Guide Bulletin
July 1, 2014
Highlights of changes in this Guide Bulletin include:
- Adding Manufactured Housing Community loans purchase requirements. (The term sheet and loan documents are now posted on our website).
- Revising our Appraisal chapter to incorporate best practices discussed with the appraisal community.
- Permitting a Delaware Statutory Trust to be a borrower.
- Adding Value-Add Loan purchase requirements.
- Updating our provisions for fraud notification, reporting and training (effective January 1, 2015).
- Updating and making minor clarifications to insurance requirements.
- Reserving the right to send emails to Seller/Servicer personnel regarding subjects of interest.
- Consolidating and clarifying title, survey, and telecommunications agreement requirements.
- Making changes to our provisions for interest-rate hedge agreements.
- Simplifying our requirements for hazard loss reporting.
- Clarifying our requirements for the education and training of environmental consultants and Level 1 Seismic Risk Assessment consultants.
Changes to the Servicing Standard
Additionally, we have made changes in the Guide to reflect enhancements to our Servicing Standard, including:
- Requiring servicers to designate a Chief Servicing Officer (CSO) and to provide a CSO certificate with each special servicing request (effective July 15, 2014).
- Revising our servicing spreads to align with the revised servicing transaction fees implemented in the loan documents issued on July 1, 2014.
- Updating our procedure for servicer requests requiring Freddie Mac consent.
- Clarifying our requirements for the delegation of approval authority for certain special servicing requests.
Changes to Underwriting Checklists
We have also made the following revisions to the underwriting checklists:
- Requiring the submission of the certificates of occupancy with the full underwriting package (effective July 15, 2014).
- Requiring a property condition report for all supplemental mortgages.
- Revising the required submission date of the Real Estate Schedule (Form 1116).
Forms Added or Changed with this Bulletin
We have added or changed the Guide Forms listed below. These updated forms can be found on the Guide Forms and Documents Web page.
- Reserves Held in Custodial Accounts – Form 1056
- Environmental Site Assessment – Form 1103
- Physical Condition Assessment – Form 1105
- Borrower Certification of Physical and Environmental Property Condition – Form 1117
- Borrower Application for Partial Release or Easement – Form 1125
- System User Verification and Certification – Form 1148
- System Administrator Verification and Certification – Form 1149
We’ve deleted the following form from the Guide Forms and Documents page:
- Property Inspection Summary (Other Property Owned by Borrower) – Form 1114
Except as otherwise noted, all changes are effective immediately. We encourage you to read the complete Guide Bulletin for detailed information on what requirements have changed. Please contact your Multifamily Regional Representative with any Guide Bulletin questions.