MBA Releases New Commercial/Multifamily Property Inspection Form

Submitted by Ronald Tennant with Metrocities Mortgage:

MBA (5/22/2008 ) Vasquez, Jason
The Mortgage Bankers Association announced completion and implementation of a new commercial/multifamily real estate property inspection form for various property types, including office, retail, multifamily, healthcare, lodging and industrial.
The updated inspection form already has industry-wide adoption by servicers for all funding sources, including Fannie Mae and Freddie Mac. The form will not be used by the Federal Housing Administration (FHA).

“The new property inspection form is a major step forward for the commercial/multifamily industry as it will result in a more streamlined, accurate, and standardized inspection process while also reinforcing the importance of timely maintenance which is key to preserving property value,” said Jan Sternin, senior vice president of MBA’s commercial and multifamily group.

In June 2000, MBA released the first industry-accepted commercial real estate property inspection form. For eight years the original form has served as an industry tool to ensure accurate and effective inspections of the property. Introduction of the new form reinforces the same standards while expanding industry adoption to include Fannie Mae and Freddie Mac. Additionally, this 2008 form takes advantage of electronic data management and is MISMO-compliant.

This enhanced form has been released recognizing the increasing importance of monitoring commercial/multifamily real estate and what the servicers and investors need for property performance information.

MBA spearheaded an industry committee tasked with enhancing the original inspection form. The committee reviewed more than 300 suggestions and proposed changes. MBA obtained feedback from its members, the Commercial Mortgage Securities Association, industry constituents and Fannie Mae and Freddie Mac. A MISMO working group representative also participated on the committee to ensure that the MISMO data directory was incorporated in the current inspection form.

“I enjoyed working with a diverse, very experienced working group,” said Clare Dooley, senior vice president of Capmark Financing Inc., Horsham, Pa., co-chair of the working group. “We believe the new inspection form and reference guide will allow for standardized use and compliance across the industry. In fact, Capmark has already started to use the form for some of its clients.”