Innovation and simplification continues to be a big focus for the Seniors Housing team in 2018. Which is why we are rolling out changes to the Multifamily Underwriting Standards (Form 4660) and Multifamily Selling & Servicing Guide to help better position us in the market.
Some highlights include:
- Removing the weighted average requirement for vacancy and DSCR
- Removing the 90% economic occupancy requirement for 12 months
- Clarifying the Skilled Nursing Net Cash Flow test calculation
- Updating the Underwriting Floor requirements
For more details on these changes and how we're increasing lender delegation, please reference Guide Update 18-02 and Lender Letter 18-03.
Also, in DUS Gateway, you'll notice we have added Seniors-specific fields, which will help us in our ability to track Property Operators/Managers. We now want to see if a deal has the following:
- Management Agreement
- Operating Lease
- Lease Affiliation
- NCF to Lease Ratio - if unaffiliated
- If operating lease = yes, enter Property Operator as Deal Participant
- If management agreement = yes, enter Property Manager as Deal Participant
These fields are simple drop downs and do not require many extra steps. We hope by tracking managers and operators we are able to recognize reputable players who may not be in the ownership structure of past deals. Please note you will receive an error message if these fields are not entered. For a full version of the changes, click here.
Again, we thank you for a very successful 2017 with $5.5 billion financed together-let's make 2018 even better! We believe with these changes our speed of execution will continue to lead the market. Please reach out to us at [email protected] with any questions.