Fannie Mae and Freddie Mac Due Diligence
Environmental Due Diligence
Phase I Environmental Site Assessments (Phase Is) are the central product in Partner's Environmental Due Diligence practice. Phase Is are our core environmental expertise.
Partner performs Phase Is to meet the requirements established by ASTM Standard E1527-05, AAI, HUD Multifamily Accelerated Processing (MAP), Fannie Mae DUS Guidelines, Freddie Mac, or client specific standards which may go beyond those established standards (including but not limited to asbestos surveys, radon testing, lead-based paint testing, and lead in drinking water testing).
Partner specializes in Fannie Mae (Federal National Mortgage Association or FNMA) and Freddie Mac due diligence including Phase Is and engineering assessments.
Our Fannie Mae environmental assessments are designed to comply with Part X- Environmental Hazard Management Procedures and Sections 209-310 of the Fannie Mae Guide.
Freddie Mac environmental assessments are conducted in accordance with Freddie Mac guidelines as specified in the Freddie Mac Multifamily Seller/Servicer Guide and Chapter 14, "Environmental Requirements."
Engineering Due Diligence
Partner also conducts PNAs according to both Fannie Mae and Freddie Mac scopes of work. Partner's PNA conforms to the Fannie Mae Delegated Underwriting and Servicing (DUS) Guide, Part III, Chapter 3, 308.
Partner's Freddie Mac Property Condition Reports (PCRs) are conducted in accordance with Freddie Mac guidelines as specified in the Freddie Mac Multifamily Seller/Servicer Guide and Chapter 15, Engineering and Property Condition Requirements. All appropriate Freddie Mac forms are completed with projected expenditures and are included in the appendices of each report.
In the past year, Partner has completed hundreds of Fannie Mae Probable Maximum Loss reports to assist underwriters in understanding seismic risk for DUS Lenders and directly for Fannie Mae. Partner provides regular webinars on the subject of Probable Maximum Loss Reports.
Fannie Mae Form 4262
Revised Form 4262 from Fannie Mae has been modified to include a separate worksheet to "Insert Brochures or Documents". To view the complete list of changes and the new form, visit Fannie Mae's website.
Freddie Mac Revisions to Chapter 13, Environmental Requirements
Partner assessors meet Fannie Mae DUS requirements for termite inspection.
During the consultant selection process, consideration should be given to the ability of the consultant to fulfill specific requirements set forth by Fannie Mae. A review of the DUS Guide Part III, Chapter 3, Section 304 indicates the following:
The DUS Guide currently requires the Lender to provide a termite inspection report or a termite bond or other evidence of adequate coverage. The Lender is not required to submit a termite inspection report or bond if the project construction is steel or concrete and the Lender provides documentation of such fact. If the project construction is not steel or concrete, then in lieu of a termite report or bond the Lender must submit one of the following:
A letter from the current pest control company providing regular service to the Property, stating that the Property has been regularly treated to prevent termite and other wood boring insect infestation and, to its knowledge, there is no current infestation, or
A letter from a qualified engineer (which must be the same engineer performing the physical needs assessment) indicating that there is no evidence of termite or wood boring insect infestation. In order to be a "qualified" engineer, such engineer must have completed termite inspection training and certification and must provide evidence of such.
Partner provides a nationwide staff of assessors, project managers, and report review staff that has received Branch III technical training as set forth by the Structural Pest Control Board of California. Partner staff is trained in Pesticide / Termiticide Safety, Pest Identification / Biology, and Construction, Repairs, and Wood Preservation Techniques.
Our NewsletterStay Informed on all things Partner.
For More Information
- Fannie Mae Changes its Multifamily Guidelines! What Should You be Aware Of?
- Globe Street, Kovan
- Should You Pick a Freddie or Fannie Report?
- Globe Street, Chang
- Fannie Mae Freddie Mac Blog Archive