On Monday, Freddie Mac released guidance on best practices for engineering and environmental reports.
The guidance notes common report issues, advises methods for selecting the best consultants and evaluating environmental and engineering consultant reports, and notes specific responsibilities. Common errors noted include failure to follow requirements of the Freddie Mac Multifamily Seller/Servicer Guide such as not testing for asbestos and radon, and lack of risk evaluations, recommendations and cost estimates.
The issuance of this document begs the question: has Freddie received a slew of bad reports from unqualified servicers? How well does your consultant know Freddie Mac?
Partner Engineering and Science, Inc. specializes in Freddie Mac due diligence including Phase I ESAs and Property Condition Reports. Having conducted hundreds of them, Partner is well versed in their particular requirements and stays current with the changing guidelines.
Freddie Mac lenders and servicers should review this guidance to ensure that they are avoiding common mistakes and fully meeting the requirements of the Guide.