SS Multi-Family Memo 13-01
Date: January 23, 2013
MULTI-FAMILY SELLING GUIDE AND FORM REVISION
CONTACT: Eric A. Havelock – Multi-family Underwriting Supervisor
Multi-family Loan Purchase Program
AHFC Form MF-LND-7 (Deed of Trust) and Form MF-LND-6 (Assignment of Deed of Trust)
Effective with the date of this memo, but no later than March 31, 2013, lenders will be required to use the updated AHFC form MF-LND-7 (Multi-Family Deed of Trust Assignment of Rents, Security Agreement and Fixture Filing) and MF-LND-6 (Assignment of Multi-Family Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing) for loans sold to AHFC. AHFC will continue to accept the Fannie Mae standard Multi-family Deed of Trust until that time, noting AHFC’s version has fewer pages thus reducing recording costs to your borrowers. All of AHFC’s multi-family forms are available on AllRegs.
Section 5002.02.14 Documentation Required – Alaska UCC-1 Financing Statement
Lenders utilizing the updated AHFC Deed of Trust (AHFC Form MF-LND-7) will no longer be required to record the UCC Financing Statement in the financed property’s recording district. The UCC-1 Financing Statement must be filed in the central (State) recording office and then assigned to AHFC. Lenders are cautioned to work with the title companies to assure the proper method of assigning the financing statement to AHFC, including the use of Schedule A.
AHFC Form MF-LND-2 (Loan Agreement)
Effective with the date of this memo, but no later than March 31, 2013, lenders will be required to use the updated AHFC form MF-LND-2 (Loan Agreement) for multi-family loans sold to AHFC to incorporate the financing statements into the Deed of Trust. All of AHFC’s multi-family forms are available on AllRegs.
Section 2001.04.D Environmental Considerations
AHFC is pleased to announce that only loans over $1,500,000 will require a Phase I Environmental site assessment, as long as the Environmental Records Check Report obtained on loan amounts under $1,500,000 does not indicate any evidence of contamination on the site. Depending on the recommendations of the Environmental Records Check Report and the disclosures in the Environmental Risk Assessment Questionnaire (MF–UND-7), a Phase I report may still be required. All Phase I reports must comply with ASTM E 1527.05 as adopted in the Federal Register November 1, 2005 and effective November 1, 2006.
Section 1002.02.F.2 Debt Service Coverage Ratio (DSCR)
Section 1002.02.M.3 Interest Rates
Effective with the date of this memo, the maximum interest rate increase that may be charged to the borrower on the lender’s participation amount is increased from a three percent loan cap to a five percent cap over the life of the loan. Additionally, an annual increase cap of one percent per year is being implemented. Lenders are reminded that the total debt service coverage for the loan (including the seller’s retained interest) may not be less than 1.25 at the time of commitment and that the DSCR must be calculated at the maximum rate that may be charged to the borrower. Lender participation that includes a balloon feature is not eligible, and lenders are reminded that the lender retained interest must have a minimum term of ten (10) years.
FORMS GUIDE REVISIONS: CONTACT MULTI-FAMILY
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