Changes

New Template Inspection Letters

To establish uniform expectations of the Borrower when a Property receives a PCR of 3, 4, or 5, new template Inspection Letters are available.  You may use these new forms following any inspection, however you must use the 2 new Inspection Letter forms for all Properties that receive a PCR of 3, 4, or 5.  If a PCA is obtained, you should also use the new PCA Demand Letter.

• Initial Inspection Letter – used to:
  • notify the Borrower of the inspection results and provide photos detailing the necessary repairs; and
  • request that the Borrower, within 30 days,
    • complete any life safety repairs, and
    • provide an action plan for the remaining repairs.
• Follow-up Inspection Letter (Form 4831 for DUS Mortgage Loans, and Form 4832 for Non-DUS Mortgage Loans) – if the Borrower has not satisfactorily responded to the Initial Inspection Letter within 45 days, you must
  • issue this follow-up inspection letter, and
  • require a Borrower response within 15 days.
• PCA Demand Letter (Form 4833 for 4000 Series Loan Documents and Form 4834 for 6000 Series Loan Documents) - this letter:
  • notifies the Borrower of a demand to fund an escrow and complete repairs identified by the engineer;
  • references applicable Loan Document sections requiring the Borrower to maintain the property in good condition;
  • provides a deadline for receiving the Borrower’s immediate repairs funds; and
  • notifies the Borrower of any increase in the monthly Replacement Reserve deposit.

Form 4804

Added common non-monetary defaults, including:

• code violations;
• unauthorized transfers;
• property management changes; and
• withholding financial statements.

Questions

Please contact Rod Roe at (972) 656-8816, or [email protected], with any questions.