UPDATED: A Smart Execution for Loans $15 Million or Less
December 14, 2017
Our new smart execution makes Conventional and Targeted Affordable Housing (TAH) Loans that are $15 million or less easier to process and more efficient. With this new standard process, these loans are eligible for due diligence streamlining and will reduce costs for customers.
Some of the requirements that have been changed or eliminated include:
- Zoning reports
- Special Purpose Entity requirements
- Wood Destroying Organism reports
- Physical Risk reports (Form 1108)
Seniors housing, student housing and manufactured housing community (MHC) loans are eligible for the smart execution. However, on Form 1108, you are required to complete an additional section to address different Replacement Reserve requirements for these property types.
Supplemental loans may qualify for this streamlined execution if the combined existing UPB and proposed supplemental UPB are $20 million or less.
Small Balance Loans, moderate rehab, lease-up, value-add and forward commitment loans are not eligible.
More details can be found here. For additional information, please contact your Freddie Mac representative.