Property's Ownership History

Requirements

You must:

• analyze the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). financing and sale history for the last 3 years;
• for any AcquisitionAcquisitionAny Purchase of either the: Property’s fee simple or leasehold interest via a deed transfer; or Controlling Interest in the Borrower. , review:
  • the PSAPSAFinal fully executed purchase or sales contract or agreement (including all amendments, assignments, extensions, joinders/acknowledgements, and related documents) for an Acquisition. and deed; or
  • for the transfer of a Controlling InterestControlling InterestFor any entity, ownership or control of 50% or more of the ownership interests in the entity or the power or right to control or modify, directly or indirectly, the management and operations of the entity. in the BorrowerBorrowerPerson who is the obligor per the Note. , the document conveying the ownership interest;
• address the following in your Transaction Approval Memo:
  • if an AcquisitionAcquisitionAny Purchase of either the: Property’s fee simple or leasehold interest via a deed transfer; or Controlling Interest in the Borrower.  occurred within the last 24 months, document the
    • circumstances of the sale, and
    • support for any increased Appraised ValueAppraised ValueAppraiser’s opinion of the Property's market value documented in the Appraisal, on an “as is” basis, unless use of an “as completed” basis is specifically permitted per the Guide. by analyzing any
      • Net Cash FlowNet Cash FlowAt underwriting or for any specified period, the amount calculated per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and features in Part III. increases,
      • capitalization rate compression, and
      • value-add market drivers; and
  • if any stated sales price per the PSAPSAFinal fully executed purchase or sales contract or agreement (including all amendments, assignments, extensions, joinders/acknowledgements, and related documents) for an Acquisition.  differs from the transfer price per the public records or third-party reports, investigate and document the discrepancy;
• if an AcquisitionAcquisitionAny Purchase of either the: Property’s fee simple or leasehold interest via a deed transfer; or Controlling Interest in the Borrower. occurred, confirm the seller was the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). owner in the real estate records when the PSAPSAFinal fully executed purchase or sales contract or agreement (including all amendments, assignments, extensions, joinders/acknowledgements, and related documents) for an Acquisition.  was signed;
• evaluate the PSAPSAFinal fully executed purchase or sales contract or agreement (including all amendments, assignments, extensions, joinders/acknowledgements, and related documents) for an Acquisition.  to:
  • clearly identify the
    • seller, and
    • purchaser; and
  • confirm the:
    • PSAPSAFinal fully executed purchase or sales contract or agreement (including all amendments, assignments, extensions, joinders/acknowledgements, and related documents) for an Acquisition. is complete with no redactions, and deliver a copy to the AppraiserAppraiserPerson engaged to estimate a Property’s market value per USPAP. ;
    • parties identified in the PSAPSAFinal fully executed purchase or sales contract or agreement (including all amendments, assignments, extensions, joinders/acknowledgements, and related documents) for an Acquisition. match the parties in the deed (or for the transfer of a Controlling InterestControlling InterestFor any entity, ownership or control of 50% or more of the ownership interests in the entity or the power or right to control or modify, directly or indirectly, the management and operations of the entity. in the BorrowerBorrowerPerson who is the obligor per the Note. , the document conveying the ownership interest); and
    • sale was an arm's-length transaction where no affiliation or identity of interest exists between the seller and purchaser;
• review the deed and other AcquisitionAcquisitionAny Purchase of either the: Property’s fee simple or leasehold interest via a deed transfer; or Controlling Interest in the Borrower. documents to confirm the individuals signing on behalf of the seller and BorrowerBorrowerPerson who is the obligor per the Note. are authorized to do so;
• review the final title company settlement statement on or before the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. (including any adjustments to escrows and deposits made before closing) to confirm accuracy of the:
  • purchase price per the PSAPSAFinal fully executed purchase or sales contract or agreement (including all amendments, assignments, extensions, joinders/acknowledgements, and related documents) for an Acquisition. ;
  • closing costs; and
  • any cash in/out to the seller and purchaser; and
• in the Mortgage Loan Delivery PackageMortgage Loan Delivery PackageLoan Documents and underwriting material required in connection with the Delivery of a Mortgage Loan. , submit a copy of the:
  • PSAPSAFinal fully executed purchase or sales contract or agreement (including all amendments, assignments, extensions, joinders/acknowledgements, and related documents) for an Acquisition. ; 
  • final deed (or for the transfer of a Controlling InterestControlling InterestFor any entity, ownership or control of 50% or more of the ownership interests in the entity or the power or right to control or modify, directly or indirectly, the management and operations of the entity. in the BorrowerBorrowerPerson who is the obligor per the Note. , the document conveying the ownership interest); and
  • final title company settlement statement.