New Guide Bulletin Published
December 15, 2016
With this Bulletin for the Multifamily Seller/Servicer Guide (Guide), we are updating our Seismic Risk Assessment requirements. The new Form 1102, Seismic Risk Assessment Summary, is now available for all mortgages. We've clarified the actions a Seller/Servicer must take to discontinue earthquake insurance coverage after a property has undergone seismic retrofit. And for Small Balance Loan (SBL) properties that will undergo seismic retrofitting, there is a specified reserve that a Borrower must fund.
The updated Guide includes the following additional changes:
- Revising the Borrower/Borrower Principal Due Diligence requirements and updating Forms 1115 and 1115-SBL
- Announcing upcoming automation of our Counterparty Annual Certification process
- Changing the mortgage term requirement for supplemental mortgages
- Revising our cap fee reserve provisions in the Guide for both cash and Bond Credit Enhancement mortgages
- Updating and clarifying our requirements for environmental assessments, including the addition of a new section to Form 1103, Environmental Site Assessment
- Revising our requirements for the appraiser’s inspection of commercial spaces and removing references to Form 439, Statement of Limiting Conditions and Appraiser’s Certification, which is no longer required
- Making a minor update to our language regarding aluminum wiring and clarifying our use of the term wood-damaging insects
- Clarifying a requirement for the pre-construction analysis report for a forward commitment
- Updating the servicing spreads for Seniors Housing mortgages to align them with the servicing spreads applicable to conventional cash mortgages
Refer to the complete Guide here. If you have any questions about this Bulletin, please call your Freddie Mac representative.