June 5, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. HUD approval mitigants, 223(f) escrows and new HUD issued stat limits.
Rate Desk notes June 5, 2020
- Indices up, S&P, NASDAQ near record highs
- Crude $38.97
- UST yields .83
- 223(f) 2.65%
- 221(d)(4) 3.30%
- Fannie 2.85%
- Freddie 3.20%
- Key mitigants:
- Liquidity
- High DSCR
- Strong management
- 223(f) escrows (in addition to R4R and MIP)
- Non-critical repairs
- 9-mo DS reserve
- 250% of NC repairs
- 10 or 20% assurance of completion
- HUD issued new stat limits
- No changes to the major markets
- 315% allowance to HCP on project-by-project basis
