Guide Update 23-02: Zoning, Legally Non-Conforming Status, and ALTA
Effective for Mortgage Loans Committed as of March 20, 2023, clarifying updates were made regarding:
- Updated Part II, Chapter 3: Legal Compliance to clarify underwriting requirements when affected Improvements cannot, in the case of full or partial casualty or condemnation, be rebuilt to its pre-casualty condition per current zoning requirements and building codes.
- Removed streamlined underwriting for zoning in
- Part III, Chapter 14: Supplemental Mortgage Loans, and
- Part III, Chapter 18: Choice Refinance Loans.
- For all Properties, updated guidance stating the:
- standard 2021 or 2006 ALTA forms are acceptable for Delivery; and
- title policy’s effective date should be the date you fund the Mortgage Loan.
- Revised the Loan Documentation Requirements (Form 6000) clarifying the Modifications to Multifamily Loan and Security Agreement (Legal Non-Conforming Status) (Form 6275) is required for any Property with a legal non-conforming use or characteristic.
Please contact Zachary Gordon at (202) 752-1498, or [email protected], with any questions.