Posted on January 28, 2009 by Jayanne Hino

Changes in Freddie Mac Credit Requirements for Multifamily Mortgage Loans

Freddie Mac is revising its credit requirements for its multifamily mortgage loan programs effective as of February 2, 2009. Although the term sheets have not yet been updated on the Freddie Mac website, we have been told that the changes will include increasing the minimum debt coverage ratios and decreasing the maximum loan to value ratios on various types of loans. The Freddie Mac website states that “Loans under quote or under application with Freddie Mac prior to February 2, 2009 may be subject to the new credit parameters effective immediately at the discretion of Freddie Mac or the Seller/Servicer.” One source, however, suggests that there is a grandfathering policy for loans that are under application by February 1, 2009 and that meet certain other standards (e.g., if the loan closes by May 1, 2009 for Targeted Affordable Housing loans, and if the borrower rate locks or closes prior to March 2, 2009 for Conventional Loans). If you have applied for or are considering a Freddie Mac loan, check with your Freddie Mac regional adviser or your mortgage broker now to see what loan terms and conditions will apply.

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Posted on January 12, 2009 by Clayton Graham

Seattle Tree Preservation: Proposed Expansion of City Tree Protection Ordinance

The Seattle City Council is currently considering legislation that would increase the number of trees within the City that are protected under City regulations, and could affect the development potential of many lots within the City. The proposed ordinance (council bill 116404) would expand existing tree protections to include sites not undergoing development, would prohibit removal of some "exceptional trees" (as defined by a Seattle DPD Director’s Rule) and would limit the number of trees having a diameter of 6 inches or greater that could be removed from a site during a one-year period.  Background information on the proposal and the text of the current council bill is available here.  The current version of the Director’s Rule defining "exceptional tree" would expand the number of trees considered "exceptional" under the ordinance, and would extend protections to groves of trees, as well.  The draft Director’s Rule is available here.

If approved, the legislation could become effective as early as February 2008. The Environment, Emergency Management, and Utilities Committee of the City Council is accepting written comments on the proposal until January 16, 2009.

 

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