New Guide Bulletin Published
December 12, 2014
Today we published a Guide Bulletin for the Freddie Mac Multifamily Seller/Servicer Guide on AllRegs. We encourage you to read the complete Bulletin, found on our Guide Bulletins page, for full details on what requirements have changed.
Guide Bulletin Highlights
Highlights of changes featured in this Bulletin include:
- A clarification to the qualifications for a property condition consultant.
- More extensive changes to requirements for the Seismic Risk Assessment (SRA) to better ensure that properties with multiple buildings have adequate earthquake insurance coverage.
- Revised requirements for post-purchase reporting, including:
- Indicating the requirements applicable only while a mortgage is held by Freddie Mac.
- Revising the property inspection requirements for unit and building inspections, the identification of risk issues, assessment of the property management company and the assessment of changes to the neighborhood and submarket.
- Reserving the right to request the Seller/Servicer to submit to Freddie Mac additional information from the borrower, each guarantor and each single purpose entity (SPE) equity owner.
- Modifying property inspector requirements.
- Changing the restrictions on the use of third-party fee inspector companies.
- Addition of handicap accessibility enhancements to the Operational Repair category.
- For transfers of ownership, updated contact information for the delivery of documents and notices to Freddie Mac.
- For transfers of servicing, updated requirements for wiring the transfer processing fee.
- Revised requirements for reporting hazard losses and monitoring repairs.
- Additional requirements for the Servicer when re-evaluating the adequacy of replacement reserves for a mortgage with a loan term greater than 10 years.
- Addition of the list of documents that the Servicer must submit to Freddie Mac after approval of a change to property management, for mortgages that are not Small Balance Loan (SBL) mortgages.
- Making changes to various forms, including more extensive changes to the Borrower and Borrower Principal Certificate – Form 1115.
We are also making appropriate changes to the corresponding chapters of the SBL Addendum.
Updated Guide and Non-Guide Forms
We have updated the following Guide forms, located on the Seller/Servicer Guide Web page:
- Transfer of Servicing Agreement – Form 981M (formerly the Agreement for Subsequent Transfer of Multifamily Servicing)
- Environmental Site Assessment – Form 1103
- Physical Condition Assessment – Form 1105
- Borrower and Borrower Principal Certificate – Form 1115 (formerly the Borrower Certificate of Financial Condition)
- Borrower Certification of Physical and Environmental Property Condition – Form 1117
We are also changing the name of the following non-Guide forms that are referenced in the Guide:
- Cap Escrow Adjustment Request (formerly the Freddie Mac Cap Escrow Adjustment Request for Approval Form)
- Loan Payoff Notice (formerly the Multifamily Loan Accounting Loan Payoff Notice Form)
All non-Guide forms can be found on FreddieMac.com.
The revisions announced by this Bulletin are effective immediately, except for the following:
- Seller/Servicers may begin using the new Borrower and Borrower Principal Certificate – Form 1115 immediately, and must use the revised form for all underwriting packages submitted on or after February 1, 2015.
- Changes for the SRA apply to an SRA prepared by a consultant engaged after December 12, 2014.
- The clarified qualifications for a property condition consultant apply to consultants engaged after December 12, 2014.
- Changes to the inspector and inspection requirements are effective for all property inspections conducted on or after January 1, 2015.
- Changes to requirements for earthquake insurance apply to all new policies taken out and all existing policies renewed on or after January 1, 2015.
Please contact your Multifamily regional representative with any Guide Bulletin questions.