New Guide Bulletin Published
February 29, 2016
With this Bulletin for the Multifamily Seller/Servicer Guide (Guide), we are:
- Introducing a new form, the Preliminary Legal Issues Memorandum Form – Servicing, that the Servicer’s legal counsel must use when preparing a PLIM in connection with a Borrower request for approval of a Servicing transaction
- Adding new requirements for underwriting tenant improvements and leasing commissions
- Revising the threshold for Freddie Mac’s consideration of income from a commercial or oil and gas lease when there is a request to approve the lease
- Making the following changes to our requirements for tax abatements:
- Adding guidelines for underwriting Properties with potential tax abatements
- For certain tax abatements that could be lost during the term of the loan, adding a provision for recourse if the tax abatement is not maintained during the term of the Mortgage
- Changing our delivery instructions to permit delivery of an electronic copy of any cap agreement or replacement cap agreement rather than an original
- Changing the method of electronic delivery Servicers must use when submitting backup documentation related to loan compliance reporting
- Clarifying requirements for the documents which the Servicer submits for a property management change
- Clarifying our requirements for monitoring a depository institution’s eligibility status
- Discontinuing the use of Form 1141, Annual Production Summary
- Updating our survey requirements to refer to the National Society of Professional Surveyors
- Updating the Glossary to remove references to the Multifamily Negotiated Transactions Program
We are also revising Chapters 3, 8, 11 and 43 of the Small Balance Loan (SBL) Addendum.
Except for the changes to the survey requirements, all revisions announced by this Bulletin are effective immediately. The change to the survey requirements will be effective for any survey which is ordered after March 15, 2016.
If you have any questions about this Bulletin, please call your Freddie Mac representative.