By Aaron Kovan
Aaron Kovan is the technical director for agency services at Partner Engineering and Science, a national engineering, environmental and energy consulting firm serving the commercial real estate industry.
Last fall, Fannie Mae announced a major revision was coming to its Multifamily Selling and Servicing Guide. Since then, lenders, investors and their consultants have been trying to wrap their heads around the changes and how they will affect business. The final guidelines have gone into effect as of February 3rd 2014 but there are still many questions that need to be answered.
In addition to underwriting standard changes, there were significant changes to the engineering due diligence requirements, namely the Physical Needs Assessment and seismic risk screening.
These assessments are common due diligence tools used by lenders, investors and other parties to understand how the condition of a building will impact the asset’s financial performance.....