Rate Desk June 5, 2020

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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