Mortgage Credit Panel Discussion. 2014 Midwest Lenders Conference Chicago, Illinois * June 16-18, 2014. Moderator: Rick Sherman, Berkadia Panelists: Kelly Allen, Detroit HUD Rebecca Barber, Detroit HUD Marie Sherwood, Detroit HUD Charley Gardner, Oak Grove Capital .
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2014 Midwest Lenders Conference
Chicago, Illinois * June 16-18, 2014
Moderator: Rick Sherman, Berkadia
Panelists: Kelly Allen, Detroit HUD
Rebecca Barber, Detroit HUD
Marie Sherwood, Detroit HUD
Charley Gardner, Oak Grove Capital
Who is a Principal?
Who is a Key Principal?
Section 50 recommendation
Non-Principal individual with control of a Principal entity
Principal versus Key Principal
Entity versus Individual
New Construction/Sub-Rehabilitation versus Refinance/Purchase
Large Loan Risk Mitigation Policies
REO/Debt Schedule (KP only)
Listing of Business Concerns
Sponsors’ Continuing Commitment (NC/SR only)
Fannie Mae Form 1006 (Request for VOD)
No evidence of funds to meet cash requirements (VODs).
Insufficient explanation for “yes” answers on the 92013-Supp.
Development team with inadequate industry/HUD experience.
Inadequate analysis of Sponsor/Principal troubled assets and/or properties maturing in 5 years.
No mortgage credit review for Passive Investors.
Not providing CPA-reviewed financial statements.
Cash-out requests with aggressive cap rate, inadequate repairs, and inadequate funding of the replacement reserve.
Occupancy and NOI underwritten higher than historical operations.
Not identifying correct Section 50 signatory.
Resume (AIA 305)
Joint Venture Documentation
9832 – Management Entity Profile
9839 – Management Certification
935.2 – Affirmative Action Plan (NC/SR only)
92013 – supplement