Multi-Family SS Memo 17-02mf

Date: July 26, 2017

MULTI-FAMILY GUIDE REVISIONS: CONTACT MULTI-FAMILY

MULTI-FAMILY LOAN PURCHASE PROGRAM
FEDERALLY-INSURED LOAN PURCHASE PROGRAM
Eric Havelock, Lending Officer II

Interest Rates
(Sections 1002.02.M and 1002.04.C)

Effective immediately, the following fee schedule will be used to determine interest rate buydown fees.

Interest Rate

Buydown Amount

Buydown Fee

15 Year

30 Year

0.125%

0.750%

0.875%

0.250%

1.500%

1.750%

0.375%

2.250%

2.625%

0.500%

3.000%

3.500%

0.625%

3.750%

4.375%

0.750%

4.500%

5.250%

0.875%

5.250%

6.125%

1.000%

6.000%

7.000%

MULTI-FAMILY LOAN PURCHASE PROGRAM
Eric Havelock, Lending Officer II

Transfer of Ownership
(Section 3001.03)

As a reminder to lenders, assumption transactions are subject to the published guidelines and requirements of the Multi-Family Loan Purchase Program. AHFC does not require a new appraisal for an assumption transaction, so the appraisal is not available when developing the project’s pro-forma operating statement. Reliance, therefore, should be on alternative documentation, which may include a certified rent roll and copies of the individual lease contracts. Schedule E from the seller’s federal income tax returns will reflect actual income and operating expenses. Differences between the lender’s pro-forma and the data from the alternative documentation should be addressed in AHFC Form MF-UND-5.

AHFC requires a 20% cash investment to participate in the Multi-Family Loan Purchase Program. This means the assuming party must fund 20% of the purchase price toward the transaction. Lenders are cautioned that completion escrow agreements funded as part of the 20% investment should direct any excess funds to the principal balance of the loan so as to maintain the assuming party’s 20% payment to the transaction.

Lenders are encouraged to contact AHFC when approached regarding inquiries concerning the terms and conditions of a change in ownership interest. If the original loan was originated by AHFC, the servicer will assist AHFC in obtaining the necessary paperwork. If the loan was originated by a lender, the servicer must underwrite the transfer and submit the file and a recommendation to AHFC for approval.

MULTI-FAMILY LOAN PURCHASE PROGRAM
Eric Havelock, Lending Officer II

Application for Approval of Transfer
(Section 3001.02.A)

Effective with the date of this memo, the Property Inspection Report completed by the servicer is not required when submitting a request for approval of transfer.

MULTI-FAMILY LOAN PURCHASE PROGRAM
Eric Havelock, Lending Officer II

Property Income and Expense Statements and Pro-Forma Financial Statements
(Section 3000.04)

Lenders are reminded that when expressing an opinion as to whether the income, expense and net income projections are reasonable, the current, dated rent schedule and schedule E’s must be considered. Specifically, should the actual property rents be lower or operating expenses higher than projected rents/expenses from the appraisal, resulting in a DSCR below the minimum 1.25 threshold, the lender must include its analysis regarding this discrepancy in the written opinion submitted in support of the application (AHFC Form MF-UND-5).


FORM/GUIDE REVISIONS: CONTACT MULTI-FAMILY

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