[_] |
Rule 15Ga-1 under the Exchange Act (17 CFR 240.15Ga-1) for the reporting period _________ to __________. |
(Name and telephone number, including area code, of the person to contact in connection with this filing) |
Federal Home Loan Mortgage Corporation (as issuer of the Structured Pass-Through Certificates, Series K-755) and
FREMF 2024-K755 Mortgage Trust |
(Exact name of issuing entity as specified in its charter) |
Jason Griest (703) 903-2000 |
(Name and telephone number, including area code, of the person to contact in connection with this filing) |
Date: March 26, 2024 |
Federal Home Loan Mortgage Corporation, as Depositor with respect to the Structured Pass-Through Certificates, Series K-755, and as Securitizer with respect to the FREMF 2024-K755
Mortgage Trust By: /s/ Jason Griest
Name: Jason Griest Title: Vice President–Multifamily
Securitization |
Exhibit 99.1 |
Report of Independent Accountants on Applying Agreed-Upon Procedures, dated March 26, 2024, of Ernst & Young LLP. |
|
Ernst
& Young LLP Tel: +1 212 773 3000
One Manhattan West ey.com
New York, NY 10001 |
|
Page 2 of 3 |
a. |
Certain electronic data files (the “Data Files”) that are described in Attachment A, |
b. |
Electronic copies of the loan files for the Mortgage Loans, which contain various source documents (the “Source Documents”) relating to the Mortgage Loans and the mortgaged properties
that secure the Mortgage Loans, |
c. |
A list of characteristics on the Data Files (the “Compared Characteristics”), which are listed on Exhibit 1 to Attachment A, that Freddie Mac instructed us to compare to information
contained in the Source Documents, |
d. |
A list of characteristics on the Data Files (the “Recalculated Characteristics”), which are described in Attachment A, that Freddie Mac instructed us to recalculate using information on
the Data Files, |
e. |
A list of characteristics on the Data Files (the “Provided Characteristics”), which are listed on Exhibit 2 to Attachment A, on which Freddie Mac instructed us to perform no
procedures, |
f. |
A draft of the preliminary information circular for the Transaction (the “Draft Preliminary Information Circular”) and |
g. |
Instructions, assumptions and methodologies, which are described in Attachment A. |
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Page 3 of 3 |
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Attachment A Page 1 of 6 |
1. |
Freddie Mac provided us with: |
a. |
An electronic data file (the “Preliminary Data File”) that Freddie Mac indicated contains information relating to the Mortgage Loans as of 1 April 2024
(the “Cut‑Off Date”) and |
b. |
Record layout and decode information related to the information on the Data Files. |
Mortgage Loan |
Draft Source Document(s) |
N/A |
N/A |
2. |
As instructed by Freddie Mac, we adjusted the information on the Preliminary Data File to correct all the differences we noted in performing the procedures described in the Item above and provided
a list of such differences to Freddie Mac. The Preliminary Data File, as so adjusted, is hereinafter referred to as the “Updated Data File.” |
|
Attachment A Page 2 of 6 |
3. |
Subsequent to the procedures described in the Items above, Freddie Mac provided us with an electronic data file (the “Final Data File,” which together with the Preliminary Data
File comprise the Data Files) that Freddie Mac indicated contains information of 6relating to the Mortgage Loans as of the Cut-Off Date. |
a. |
Final Data File and |
b. |
Updated Data File, |
4. |
Using the: |
a. |
First Payment Date and |
b. |
Maturity Date, |
5. |
Using the: |
a. |
First Payment Date, as shown on the Final Data File, and |
b. |
First payment date that a payment of principal and interest is due, as shown in the applicable Source Document, |
6. |
Using the “First Payment Date,” as shown on the Final Data File, we recalculated the “Seasoning” of each Mortgage Loan as of the Cut-Off Date. We compared
this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement. |
|
Attachment A Page 3 of 6 |
7. |
Using the: |
a. |
Original Loan Amount, |
b. |
Accrual Basis, |
c. |
Gross Interest Rate and |
d. |
Monthly Debt Service Amount (Amortizing), |
8. |
Using the: |
a. |
Seasoning, |
b. |
IO Period and |
c. |
Amortization Term (Original), |
9. |
Using the: |
a. |
Seasoning and |
b. |
Loan Term (Original), |
|
Attachment A Page 4 of 6 |
10. |
Using the: |
a. |
Original Loan Amount, |
b. |
Accrual Basis, |
c. |
Seasoning, |
d. |
IO Period, |
e. |
First Payment Date, |
f. |
Maturity Date, |
g. |
Gross Interest Rate and |
h. |
Monthly Debt Service Amount (Amortizing), |
a. |
Ignore differences of +/- $1 or less and |
b. |
Recalculate the “Maturity Balance” as the principal amount that is scheduled to be paid on the “Maturity Date” after the principal component (if any) that is included in the
scheduled payment that is due on the “Maturity Date” is applied to the principal balance of the corresponding Mortgage Loan. |
11. |
Using the “Cut-Off Date Loan Amount,” as shown on the Final Data File, we recalculated the “% of Cut-Off Date Pool Balance” of each Mortgage Loan. We compared
this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement. |
12. |
Using the “Cut-Off Date Loan Amount” and “Loan Group,” as shown on the Final Data File, we recalculated the “% of Cut-Off Date Loan Group Balance” of each
Mortgage Loan. We compared this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement. |
13. |
Using the: |
a. |
Primary Servicing Fee, |
b. |
Master Servicing Fee, |
c. |
Trustee Fee, |
d. |
CREFC Royalty Fee, |
e. |
Master Servicing Surveillance Fee and |
f. |
Special Servicing Surveillance Fee, |
|
Attachment A Page 5 of 6 |
14. |
Using the: |
a. |
Gross Interest Rate and |
b. |
Administration Fee Rate, |
15. |
Using the: |
a. |
Monthly Debt Service Amount (Amortizing), |
b. |
3rd Most Recent NCF, |
c. |
2nd Most Recent NCF and |
d. |
Most Recent NCF, |
i. |
3rd Most Recent DSCR (NCF), |
ii. |
2nd Most Recent DSCR (NCF) and |
iii. |
Most Recent DSCR (NCF) |
a. |
Recalculating each characteristic listed in i. through iii. above on an individual basis for each Mortgage Loan in the Crossed Loan Group, |
b. |
Recalculating the weighted average of each characteristic listed in i. through iii. above for all of the Mortgage Loans in the Crossed Loan Group by weighting the result of a. above for each
Mortgage Loan in the Crossed Loan Group by the “Cut‑Off Date Loan Amount” of such Mortgage Loan, as shown on the Final Data File, and |
c. |
Rounding the result of b. above to two decimal places. |
|
Attachment A Page 6 of 6 |
16. |
Using: |
a. |
Information on the Final Data File and |
b. |
The applicable calculation methodologies and assumptions that are described in the Draft Preliminary Information Circular, |
i. |
UW NCF DSCR, |
ii. |
UW NCF DSCR (IO), |
iii. |
Cut-Off Date LTV, |
iv. |
Maturity LTV and |
v. |
Cut-Off Date Balance/Unit |
a. |
Recalculating each characteristic listed in i. through iv. above on an individual basis for each Mortgage Loan in the Crossed Loan Group, |
b. |
Recalculating the weighted average of each characteristic listed in i. through iv. above for all of the Mortgage Loans in the Crossed Loan Group by weighting the result of a. above for each
Mortgage Loan in the Crossed Loan Group by the “Cut‑Off Date Loan Amount” of such Mortgage Loan, as shown on the Final Data File, and |
c. |
Rounding the result of b. above to two decimal places for the characteristics listed in i. through ii. above and rounding the result of b. above to the nearest 1/10th of one percent for the characteristics listed in iii. through iv. above. |
17. |
Using the “Bad Boy Indemnitor / Guarantor” and “Borrower Principal,” as shown on the Final Data File, we identified those Mortgage Loans that had at least one common
“Bad Boy Indemnitor / Guarantor” or “Borrower Principal” (the “Related Borrower Loans”). We compared the Related Borrower Loan information to the corresponding information on the Final Data File and found
such information to be in agreement. |
Characteristic |
Source Document(s) |
Street Address |
Appraisal Report, Engineering Report, USPS Website |
Property City |
Appraisal Report, Engineering Report, USPS Website |
County |
Appraisal Report, Engineering Report, USPS Website |
Property State |
Appraisal Report, Engineering Report, USPS Website |
Metropolitan Statistical Area (see Note 24) |
MSA Support File |
Zip Code |
Appraisal Report, Engineering Report, USPS Website |
Property Type |
Appraisal Report |
Property Subtype |
Appraisal Report, Investment Brief, Property Inspection and Lease Audit |
Year Built |
Engineering Report, Appraisal Report |
Year Renovated |
Engineering Report, Appraisal Report |
Elevator (Y/N) |
Engineering Report, Appraisal Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Zoning Status (see Note 2) |
Zoning Summary, Appraisal Report |
Management Company |
Management Agreement, Multifamily Loan and Security Agreement |
Characteristic |
Source Document(s) |
Appraisal Firm |
Appraisal Report, Memorandum Letter |
Appraised Value (see Note 3) |
Appraisal Report, Memorandum Letter |
Appraised Value Type (see Note 3) |
Appraisal Report, Memorandum Letter |
Appraisal Valuation Date (see Notes 1 and 3) |
Appraisal Report, Memorandum Letter |
FIRREA Eligible (Y/N) |
Appraisal Report |
Engineering Firm |
Engineering Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Engineering Report Date |
Engineering Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Immediate Repairs Cost Estimate (see Note 4) |
Engineering Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Replacement Reserves Cost Estimate per Year (see Note 4) |
Engineering Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Environmental Firm (see Note 5) |
Phase I Environmental Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Phase I Environmental Report Date (see Note 5) |
Phase I Environmental Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Phase II Recommended (Y/N) |
Phase I Environmental Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Characteristic |
Source Document(s) |
Phase II Performed (Y/N) (see Note 6) |
Phase II Environmental Report |
Phase II Environmental Report Date (see Note 6) |
Phase II Environmental Report |
Environmental Cost to Cure (Phase I plus Phase II) (see Note 7) |
Phase I Environmental Report, Phase II Environmental Report, Physical Risk Report, Preliminary Environmental Screening Site Report |
Elevated Seismic Hazard Region or PGA ≥ 0.15g (Y/N) |
Seismic Report, Engineering Report, Investment Brief, Physical Risk Report, Preliminary Environmental Screening Site Report |
PML Report Required (Y/N) (see Note 8) |
Seismic Report, Engineering Report, Investment Brief, Physical Risk Report, Preliminary Environmental Screening Site Report |
Seismic Firm (see Note 8) |
Seismic Report, Engineering Report, Investment Brief, Physical Risk Report, Preliminary Environmental Screening Site Report |
Seismic Report Date (see Note 8) |
Seismic Report, Engineering Report, Investment Brief, Physical Risk Report, Preliminary Environmental Screening Site Report |
PML (%) (see Note 8) |
Seismic Report, Engineering Report, Investment Brief, Physical Risk Report, Preliminary Environmental Screening Site Report |
Characteristic |
Source Document(s) |
Total Units (see Note 9) |
Appraisal Report, Rent Roll |
Unit of Measure |
Rent Roll, Appraisal Report |
Monthly Rent Per Unit (see Note 10) |
Rent Roll |
Occupancy As of Date (see Note 11) |
Rent Roll |
Occupancy % (see Note 11) |
Rent Roll, Appraisal Report |
Tenant Concentration Type (see Note 12) |
Property Inspection and Lease Audit, Investment Brief, Appraisal Report |
% of Tenant Concentration (see Note 12) |
Property Inspection and Lease Audit, Investment Brief, Appraisal Report |
Green Advantage |
Multifamily Loan and Security Agreement, Green Assessment Report |
Condo Ownership (% or N/A) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Investment Brief |
Affordable LI Units (<=80% AMI) (see Note 25) |
CRA Report |
Affordable LI Units (<=60% AMI) (see Note 25) |
CRA Report |
Affordable VLI Units (<=50% AMI) (see Note 25) |
CRA Report |
Characteristic |
Source Document(s) |
Type of Regulatory Agreement(s) (see Note 26) |
Regulatory Agreement Diligence Spreadsheet |
Regulatory Agency/Housing Authority/Regulatory Agreement Counterparty (see Note 26) |
Regulatory Agreement Diligence Spreadsheet |
Description of Regulatory Agreement(s) (see Note 26) |
Regulatory Agreement Diligence Spreadsheet |
% Units with Income Restrictions (see Note 26) |
Regulatory Agreement Diligence Spreadsheet |
% Units with Rent Restrictions (see Note 26) |
Regulatory Agreement Diligence Spreadsheet |
HAP Maturity Date (see Note 26) |
Regulatory Agreement Diligence Spreadsheet |
Characteristic |
Source Document(s) |
# Units – Commercial |
Rent Roll, Appraisal Report, Commercial Lease, Investment Brief |
Amount Sq. Ft – Commercial |
Rent Roll, Appraisal Report, Commercial Lease, Investment Brief |
% of GPR from Commercial Rental Income |
Underwriter’s Summary Report, Investment Brief |
Characteristic |
Source Document(s) |
Property Insurance Coverage (Y/N) |
Property Insurance Certificate, Form 1133, Multifamily Insurance Compliance Report |
Terrorism Insurance (Y/N) |
Property Insurance Certificate, Form 1133, Multifamily Insurance Compliance Report |
Liability Insurance Coverage (Y/N) |
Liability Insurance Certificate, Form 1133, Multifamily Insurance Compliance Report |
Windstorm Insurance (Y/N) |
Property Insurance Certificate, Form 1133, Multifamily Insurance Compliance Report |
Flood Insurance (Y/N) (see Note 14) |
Property Insurance Certificate, Form 1133, Multifamily Insurance Compliance Report, Flood Insurance Policy |
Seismic Insurance if PML >= 20% (Yes/No) (see Note 15) |
Property Insurance Certificate, Form 1133, Multifamily Insurance Compliance Report |
Environmental Insurance (Y/N) |
Environmental Insurance Certificate, Multifamily Loan and Security Agreement |
Characteristic |
Source Document(s) |
3rd Most Recent Financial End Date |
Underwriter’s Summary Report, Investment Brief |
3rd Most Recent EGI |
Underwriter’s Summary Report, Investment Brief |
3rd Most Recent Expenses |
Underwriter’s Summary Report, Investment Brief |
3rd Most Recent NOI |
Underwriter’s Summary Report, Investment Brief |
3rd Most Recent NCF |
Underwriter’s Summary Report, Investment Brief |
2nd Most Recent Financial End Date |
Underwriter’s Summary Report, Investment Brief |
2nd Most Recent EGI |
Underwriter’s Summary Report, Investment Brief |
2nd Most Recent Expenses |
Underwriter’s Summary Report, Investment Brief |
2nd Most Recent NOI |
Underwriter’s Summary Report, Investment Brief |
2nd Most Recent NCF |
Underwriter’s Summary Report, Investment Brief |
Most Recent Financial End Date |
Underwriter’s Summary Report, Investment Brief |
Most Recent EGI |
Underwriter’s Summary Report, Investment Brief |
Most Recent Expenses |
Underwriter’s Summary Report, Investment Brief |
Most Recent NOI |
Underwriter’s Summary Report, Investment Brief |
Most Recent NCF |
Underwriter’s Summary Report, Investment Brief |
UW EGI |
Underwriter’s Summary Report, Investment Brief |
UW Expenses |
Underwriter’s Summary Report, Investment Brief |
UW NOI |
Underwriter’s Summary Report, Investment Brief |
Underwritten Annual Reserves |
Underwriter’s Summary Report, Investment Brief |
UW NCF |
Underwriter’s Summary Report, Investment Brief |
Characteristic |
Source Document(s) |
Borrowing Entity |
Promissory Note, Multifamily Loan and Security Agreement, Mortgage/Deed of Trust |
Entity Type |
Promissory Note, Multifamily Loan and Security Agreement, Mortgage/Deed of Trust |
State of Organization |
Promissory Note, Multifamily Loan and Security Agreement, Mortgage/Deed of Trust |
Delaware Statutory Trust (Y/N) |
Promissory Note, Multifamily Loan and Security Agreement, Mortgage/Deed of Trust |
Borrower Or Principal Prior Bankruptcy (Y/N) |
FRE Form 1115, Organization Chart |
Single Purpose Borrowing Entity / Single Asset Borrowing Entity |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Tenants In Common (Y/N) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Bad Boy Indemnitor / Guarantor |
Guaranty Agreement, Multifamily Loan and Security Agreement |
Recourse (Y/N) |
Promissory Note, Guaranty Agreement, Multifamily Loan and Security Agreement |
Recourse Description |
Promissory Note, Multifamily Loan and Security Agreement, Guaranty Agreement |
Characteristic |
Source Document(s) |
Environmental Carveout (Y/N) |
Promissory Note, Multifamily Loan and Security Agreement, Guaranty Agreement |
Environmental Indemnitor (Name or N/A) |
Guaranty Agreement, Multifamily Loan and Security Agreement |
Fraud Carveout (Y/N) |
Promissory Note, Multifamily Loan and Security Agreement, Guaranty Agreement |
Misapplication of Rent and Insurance Proceeds Carveout (Y/N) |
Promissory Note, Multifamily Loan and Security Agreement, Guaranty Agreement |
Voluntary Bankruptcy Carveout (Y/N) |
Promissory Note, Multifamily Loan and Security Agreement, Guaranty Agreement |
Waste Carveout (Y/N) |
Promissory Note, Multifamily Loan and Security Agreement, Guaranty Agreement |
Characteristic |
Source Document(s) |
Loan Purpose (Acquisition, Refinance) |
Multifamily Loan and Security Agreement, Settlement Statement |
Freddie Mac Loan Number |
Promissory Note, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Optigo Lender (see Note 17) |
Promissory Note, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Note Date |
Promissory Note |
Original Loan Amount |
Promissory Note, Amended Promissory Note |
Gross Interest Rate |
Promissory Note |
Loan Amortization Type |
Promissory Note |
Monthly Debt Service Amount (IO) (see Note 18) |
Promissory Note |
Monthly Debt Service Amount (Amortizing) (see Note 18) |
Promissory Note |
First Payment Date |
Promissory Note |
Payment Date |
Promissory Note |
Maturity Date |
Promissory Note |
Rate Type |
Promissory Note |
Accrual Basis |
Promissory Note |
Late Charge Grace Period (see Note 19) |
Promissory Note |
Prepayment Provision (see Note 20) |
Promissory Note, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Partial Defeasance Permitted (Y/N) |
Promissory Note, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Defeasance To Maturity (Yes/No) |
Promissory Note, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Characteristic |
Source Document(s) | |
Non-Compliance Provisions (Yes/No) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement | |
Regulatory Agreement (Yes/No) (see Note 26) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Regulatory Agreement Diligence Spreadsheet, Land Use Restriction Agreement | |
Title Vesting (Fee/Leasehold/Both) |
Title Policy | |
Lien Position |
Title Policy | |
Ground Lease Rent |
Ground Lease, Ground Lease Estoppel | |
Ground Lease Maturity Date |
Ground Lease, Ground Lease Estoppel | |
Ground Lease Expiration Date w/ Extensions |
Ground Lease, Ground Lease Estoppel | |
Cash Management (Description or N/A) (see Note 21) |
Cash Management Agreement, Lockbox Agreement | |
Lockbox (Y/N) (see Note 22) |
Cash Management Agreement, Lockbox Agreement | |
Additional Financing In Place (Existing) (Yes/No) |
Promissory Note, Amended Promissory Note, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Mezzanine Note, Mezzanine Loan Intercreditor Agreement, Subordinate
Financing Agreement | |
Assumption Fee |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement | |
Additional Financing Amount (Existing) |
Promissory Note, Amended Promissory Note, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Mezzanine Note, Mezzanine Loan Intercreditor Agreement, Subordinate
Financing Agreement | |
Additional Financing Description (Existing) |
Promissory Note, Amended Promissory Note, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Mezzanine Note, Mezzanine Loan Intercreditor Agreement, Subordinate
Financing Agreement | |
Future Mezzanine Debt (Y/N) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement | |
Future Supplemental Financing (Yes/No) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement | |
Future Supplemental Financing Description |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement | |
Substitution Permitted (Y/N) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Substitution Agreement | |
Number of Properties |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Appraisal Report | |
Collateral Release Price ($ or N/A) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Cross Collateralization Agreement | |
Characteristic |
Source Document(s) |
Crossed Loans |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Cross Collateralization Agreement |
Release (Y or N or N/A) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Cross Collateralization Agreement |
Release Provisions (Description or N/A) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Cross Collateralization Agreement |
Independent Director (Y/N) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Non-Consolidation Opinion (Y/N) |
Non-Consolidation Opinion from Counsel, Seller’s Counsel’s Certification |
Primary Servicing Fee (see Note 23) |
Exhibit A to Commitment Letter, Early Rate Lock Application |
Trustee Fee (see Note 29) |
Trustee Fee Bid Package |
Characteristic |
Source Document(s) |
Tax Reserve - Current Balance ($ or N/A) (see Note 28) |
Servicing Tape |
Tax Reserve (Initial) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Tax Reserve (Monthly) |
List of All Escrow Accounts Held, Servicing Tape |
Insurance Reserve - Current Balance ($ or N/A) (see Note 28) |
Servicing Tape |
Insurance Reserve (Initial) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Insurance Reserve (Monthly) |
List of All Escrow Accounts Held, Servicing Tape |
Engineering Reserve - Current Balance ($ or N/A) (see Note 28) |
Servicing Tape |
Engineering Reserve/Deferred Maintenance |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Engineering Reserve - Contractual Payment ($ or N/A) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Replacement Reserve - Current Balance ($ or N/A) (see Note 28) |
Servicing Tape |
Replacement Reserve (Initial) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Characteristic |
Source Document(s) |
Replacement Reserve (Monthly) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Replacement Reserve - Contractual - Cap ($ or N/A) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Other Reserve - Current Balance ($ or N/A) (see Note 28) |
Servicing Tape |
Other Reserve (Initial) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Other Reserve Description |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Servicing Tape |
Other Reserve (Monthly) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Other Reserve - Contractual - Cap ($ or N/A) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, List of All Escrow Accounts Held, Settlement Statement, Servicing Tape |
Springing Reserve Type |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, Servicing Tape |
Springing Reserve Amount |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, Servicing Tape |
Springing Reserve Description |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement, Servicing Tape |
Are Escrows/Reserves LOC or can be converted to LOC (Y/N) |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement |
Specify Accounts for Escrows/Reserves LOC |
Mortgage/Deed of Trust, Multifamily Loan and Security Agreement, Escrow Agreement |
Letter of Credit Amount |
Letter of Credit, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
Letter of Credit Description |
Letter of Credit, Mortgage/Deed of Trust, Multifamily Loan and Security Agreement |
1. |
For any Mortgage Loan listed in Table A1, Freddie Mac instructed us to use the information in the “Provided Value” column for the applicable characteristic listed in
Table A1, even if the information in the “Provided Value” column did not agree with the information that was shown in the applicable Source Document(s) or the applicable Source Document(s) were not provided to us. |
Table A1: |
|||
Mortgage Loan |
Characteristic |
Provided Value | |
Brookdale Denton South |
Appraisal Valuation Date |
5/20/2020 |
2. |
For the purpose of comparing the “Zoning Status” characteristic, Freddie Mac instructed us to use the appraisal report Source Document if the zoning summary Source Document was not
available and to include “(Appraisal)” in the value for the “Zoning Status” characteristic if the appraisal report was used as the Source Document. |
3. |
For the purpose of comparing the “Appraised Value,” “Appraisal Valuation Date” and “Appraised Value Type” characteristics for any Mortgage Loan listed in Table
A2, Freddie Mac instructed us to: |
a. |
Use the appraised value and appraisal value date, both as shown in the applicable Source Document(s), that are associated with the appraisal valuation type that is identified in
the “Valuation Type from Appraisal Report” column of Table A2 for the “Appraised Value” and “Appraisal Valuation Date” characteristics, respectively, and |
b. |
Use the appraisal valuation type listed in the “Appraised Value Type” column of Table A2 for the “Appraised Value Type” characteristic. |
Table A2: |
||
Mortgage Loan |
Valuation Type from Appraisal Report |
Appraised Value Type |
Brookdale Harrisburg |
Real Property |
As-Is |
Brookdale Junction City |
Real Property |
As-Is |
Element Austin |
Hypothetical Value |
As-Is |
Beckley |
Market Value As If Restricted |
As-Is |
Highland |
Market Value As If Restricted Values |
As-Is |
Rosehill Gardens |
Hypothetical Value With RCS Rents Approved by HUD |
As-Is |
Brownstone Commons Apartments |
Hypothetical Value With RCS Rents Approved by HUD |
As-Is |
Parkside Apartments |
Hypothetical Value With RCS Rents Approved by HUD |
As-Is |
Spring Valley Apartments |
Hypothetical Value With RCS Rents Approved by HUD |
As-Is |
4. |
For the purpose of comparing the “Immediate Repairs Cost Estimate” and “Replacement Reserves Cost Estimate per Year” characteristics, Freddie Mac instructed us to use
“N/A” for the “Immediate Repairs Cost Estimate” and “Replacement Reserves Cost Estimate per Year” characteristics if the physical risk report or preliminary environmental screening site report Source Document did
not contain the corresponding information and an engineering report Source Document was not available. |
5. |
For the purpose of comparing the “Environmental Firm” and “Phase I Environmental Report Date” characteristics, Freddie Mac instructed us to use “N/A (Physical Risk
Report)” for the “Environmental Firm” and “Phase I Environmental Report Date” characteristics if a physical risk report or preliminary environmental screening site report Source Document was provided in the related
loan file and a phase I environmental report Source Document was not available. |
6. |
Freddie Mac instructed us to perform procedures on the “Phase II Performed (Y/N)” |
7. |
For the purpose of comparing the “Environmental Cost to Cure (Phase I plus Phase II)” characteristic, Freddie Mac instructed us to use “N/A” for the “Environmental
Cost to Cure (Phase I plus Phase II)” characteristic if the physical risk report or preliminary environmental screening site report Source Document did not contain the corresponding information and a phase I environmental report or phase
II environmental report Source Document was not available. |
8. |
Freddie Mac instructed us to perform procedures on the “PML Report Required (Y/N),” “Seismic Firm,” “Seismic Report Date” and “PML (%)”
characteristics only for Mortgage Loans with “Yes” for the “Elevated Seismic Hazard Region or PGA ≥ 0.15g (Y/N)” characteristic on the Preliminary Data File. If the “Elevated Seismic Hazard Region
or PGA ≥ 0.15g (Y/N)” characteristic on the Preliminary Data File is “Yes,” Freddie Mac instructed us to use “Yes” for the “PML Report Required (Y/N)” characteristic and the applicable
information in the seismic report Source Document for the purpose of comparing the “Seismic Firm,” “Seismic Report Date” and “PML (%)” characteristics unless the applicable Source Document(s) state that a
seismic assessment has been waived. If the “Elevated Seismic Hazard Region or PGA ≥ 0.15g (Y/N)” characteristic on the Preliminary Data File is “Yes” and the applicable Source Document(s) indicate that a
seismic assessment has been waived or the related loan file does not contain a seismic report Source Document, Freddie Mac instructed us to use “No” for the “PML Report Required (Y/N)” characteristic
and “N/A” for the “Seismic Firm,” “Seismic Report Date” and “PML (%)” characteristics. If the “Elevated Seismic Hazard Region or PGA ≥ 0.15g (Y/N)”
characteristic on the Preliminary Data File is “No,” Freddie Mac instructed us to use “No” for the “PML Report Required (Y/N)” characteristic and “N/A” for the “Seismic
Firm,” “Seismic Report Date” and “PML (%)” characteristics. |
9. |
For the purpose of comparing the “Total Units” characteristic, Freddie Mac instructed us to only include the residential units at the mortgaged property associated with each Mortgage
Loan, as shown in the appraisal report or rent roll Source Document. |
10. |
For the purpose of comparing the “Monthly Rent Per Unit” characteristic, Freddie Mac instructed us to use: |
a. |
Market rents for vacant, model, leasing office or “down” units, |
b. |
In-place rents plus employee concessions for manager/employee units and |
c. |
In-place rents for occupied units, |
11. |
For the purpose of comparing the “Occupancy As of Date” characteristic, Freddie Mac instructed us to use the last day of the applicable month if the applicable Source Document(s) only
indicated the month and year. |
12. |
For the purpose of comparing the “Tenant Concentration Type” and “% of Tenant Concentration” characteristics, Freddie Mac instructed us to treat “Alzheimer’s
care” and “memory care” tenant types as “Assisted Living,” as shown in applicable Source Document(s). |
13. |
For the purpose of comparing the “Insurance Information” characteristics, Freddie Mac instructed us to use the property insurance certificate, environmental insurance certificate,
liability insurance certificate or flood insurance policy Source Document, as applicable, even if the certificate expired prior to the Cut-Off Date. |
14. |
Freddie Mac instructed us to use “Yes” for the “Flood Insurance (Y/N)” characteristic if: |
a. |
There is flood insurance in place, as shown in the property insurance certificate or flood insurance policy Source Document and |
b. |
Flood insurance is required, as shown in the form 1133 or multifamily insurance compliance report Source Document. |
15. |
Freddie Mac instructed us to use “Yes” for the “Seismic Insurance if PML >=20% (Yes/No)” characteristic if: |
a. |
The “PML (%),” as shown on the Preliminary Data File, is greater than or equal to 20%, |
b. |
Earthquake insurance is required, as shown in the form 1133 or multifamily insurance compliance report Source Document and |
c. |
Earthquake insurance is in place, as shown in the property insurance certificate Source Document. |
16. |
For the purpose of comparing the “Underwriting Information” and “Reserve/Escrow Information” characteristics that are expressed as dollar values, Freddie Mac instructed
us to ignore differences: |
a. |
Of +/- $1 or less for all “Underwriting Information” characteristics and |
b. |
Of +/- $5 or less for all “Reserve/Escrow Information” characteristics. |
17. |
For the purpose of comparing the “Optigo Lender” characteristic, Freddie Mac instructed us to use the “Lender” of the Mortgage Loan, as shown in the applicable Source
Document(s). |
18. |
For the purpose of comparing the “Monthly Debt Service Amount (IO)” characteristic for any: |
a. |
Mortgage Loan for which the “Loan Amortization Type” characteristic, as shown on the Preliminary Data File, is “Interest Only” (each, an “Interest Only Loan”)
or |
b. |
Mortgage Loan for which the “Loan Amortization Type” characteristic, as shown on the Preliminary Data File, is “Partial IO” (each, a “Partial IO Loan”),
|
i. |
The “Original Loan Amount,” as shown on the Preliminary Data File, |
ii. |
The “Gross Interest Rate,” as shown on the Preliminary Data File, and |
iii. |
365/360. |
a. |
The “Original Loan Amount,” as shown on the Preliminary Data File and |
b. |
The “Gross Interest Rate,” as shown on the Preliminary Data File. |
19. |
For certain Mortgage Loans, the applicable Source Document(s) may contain the following language: |
20. |
For the purpose of comparing the “Prepayment Provision” characteristic for Mortgage Loans which permit defeasance, as shown in the applicable Source Documents, Freddie Mac instructed us
to include all “Payment Dates” on or prior to the Cut-Off Date in the lockout period regardless of whether the Mortgage Loan was actually in a lockout period on those “Payment Dates.” |
21. |
For the purpose of comparing the “Cash Management (Description or N/A)” characteristic, Freddie Mac instructed us to use the following definitions: |
a. |
Hard – a cash management administration method where the tenants directly pay rents to the borrower or the management company who then deposits the rents into a lockbox account.
Funds are then swept into a lender-controlled account and |
b. |
Springing – a cash management administration method where, at the origination of the Mortgage Loan, the tenants directly pay rents to the borrower or the management company who then
deposits the rents into a lockbox account. Prior to a trigger event, the funds will be swept to a borrower‑controlled account. Upon the occurrence of a trigger event, the funds will be swept to a lender-controlled account.
|
22. |
For the purpose of comparing the “Lockbox (Y/N)” characteristic, Freddie Mac instructed us to use “Yes” if a clearing account was set up at the origination of the Mortgage
Loan, as shown in the cash management agreement or lockbox agreement Source Document. |
23. |
For the purpose of comparing the “Primary Servicing Fee” characteristic, Freddie Mac indicated that the “Primary Servicing Fee” is described in the Draft Preliminary
Information Circular and other Transaction offering documents as the sub-servicing fee. |
24. |
For the purpose of comparing the “Metropolitan Statistical Area” characteristic, the MSA support file Source Document is a Microsoft Excel file labelled “MSA
File_2024-02-05.xlsx” which was provided by Freddie Mac on 21 February 2024. |
25. |
For the purpose of comparing the indicated characteristics, the CRA report Source Document is a Microsoft Excel file labelled “cra2 (1).csv” which was provided by Freddie Mac
on 21 February 2024. |
26. |
For the purpose of comparing the indicated characteristics, the regulatory agreement diligence spreadsheet Source Document is a Microsoft Excel file labelled “K-755 Regulatory Agreement
Diligence Spreadsheet(71672.2).xlsx” which was provided by Freddie Mac on 19 March 2024. |
27. |
For the purpose of comparing the “Reserve/Escrow Information” characteristics, the servicing tape Source Document is a Microsoft Excel file labelled “Servicer Escrow
Template_2024-03-14.xlsx” which was provided by Freddie Mac on 18 March 2024. |
28. |
For the purpose of comparing the indicated characteristics, Freddie Mac instructed us to: |
29. |
For the purpose of comparing the “Trustee Fee” characteristic, Freddie Mac indicated that the “Trustee Fee” of 0.00470% per annum for each Mortgage Loan on the Preliminary
Data File is comprised of a certificate administrator fee of 0.00400% per annum and a trustee fee of 0.00070% per annum, as shown in the trustee fee bid package Source Document. |
Characteristic |
||
Loan No. / Property No. |
||
Property Name |
||
Loan Group |
||
Master Servicing Fee |
||
CREFC Royalty Fee |
||
Master Servicing Surveillance Fee |
||
Special Servicing Surveillance Fee |
||
Rental Subsidy Indicator (Y/N) |
||
Rental Subsidy Type |
||
Environmental Insurance Expiration Date |
||
Environmental Insurance Carrier (Name or N/A) |
||
Environmental Insurance Carrier Rating |
||
Environmental Insurance Coverage ($ or N/A) |
||
Terrorism Insurance Expiration Date |
||
Terrorism Insurance Carrier (Name or N/A) |
||
Terrorism Insurance Carrier Rating |
||
Terrorism Insurance Coverage ($ or N/A) |
||
Terrorism Insurance Deductible ($ or N/A) |
||
Property Insurance Expiration Date |
||
Property Insurance Carrier (Name or N/A) |
||
Property Insurance Carrier Rating |
||
Property Insurance Coverage ($ or N/A) |
||
Property Insurance Deductible ($ or N/A) |
||
Liability Insurance Expiration Date |
||
Liability Insurance Carrier (Name or N/A) |
||
Liability Insurance Carrier Rating |
||
Liability Insurance Coverage ($ per occurrence/$ aggregate or N/A) |
||
Liability Insurance Deductible ($ or N/A) |
||
CDCR (Combined DCR) |
||
CLTV (Combined LTV) |
||
Borrower Principal |
||
Borrower/Principal Liquid Assets |
||
Borrower/Principal Net Worth |
||
Bankruptcy Description (Chapter # or N/A) |
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