Primary Changes

Updated Form 4098 to:

• add new guidance for
  • Property assigned by Borrower to a new Ground Lessor that could expire during the loan term, and
  • Original Issue Discount; 
• remove references to 
  • Healthy Housing Rewards: Healthy Design and Enhanced Resident Services, and
  • Sponsor-Dedicated Workforce Housing (SDW) with Cost Burdened and Very Cost Burdened; and
• revise guidance for:
  • Cross-Defaulted/Cross-Collateralized – removed due on sale clause and release provision;
  • Delaware Statutory Trust (DST) – added risk factors and impacts to control of the Property that may exist with layered DST;
  • Impairment on Use – added material impact related to catastrophic or casualty events; 
  • Special Public Purpose – clarified the required Disclosure comments;
  • Conflict Mortgage Loans (i.e., Lender’s Equity Interest) – added provisions related to Lender or Lender employee Ownership Interest in the Borrower;
  • MBS as Bond Collateral (i.e., MTEB) – added example for when a Bond Credit Enhancement is in the first lien position and the MBS is in the second lien position; and
  • Non-Standard Events of Default and/or Personal Recourse Triggers – added note clarifying shared use and legal non-conforming do not require Additional Disclosure.

Questions

Please contact Patricia Lafean at (202) 752-6240, or [email protected], with any questions.