Southeast Mortgagee Advisory Council (SMAC)

Southeast Mortgagee
Advisory Council (SMAC)

May 29
-
May 31



Downs
Spitler
, III, Moderator
–

Senior Vice
President
–

HFC Funding
Corporation, Ridgeland, MS.



Mark Van Kirk
–

Director of Asset
Management
–

U.S. Department of
Housing & Urban Development, Washington, DC.



Jan W. Haber, Esq.
–

U.S. Department of Housing & Urban Development,
Atlanta, Georgia



Jim Reed
–

Senior Vice President
–

Asset Management

–

Oppenheimer
Multifamily Housing & Healthcare Finance, Inc., North Wales, PA



John
Vihstadt,
Esq
.
–

Krooth

& Altman
LLP, Washington, D.C.



2

Downs
is Senior Vice President of Originations for HFC Funding
Corporation located in Ridgeland, MS.




He
began his career with Wachovia Bank & Trust in North Carolina
followed by a brief stay in New York where he worked with the joint
venture between Nations Bank and Dean
Witter,
and later SunTrust Bank
in Tampa.

His career includes work in Commercial & Industrial
Lending
as well as Commercial Real Estate.

Downs graduated from Barton
College.


3


Marie Head, the U.S. Department of Housing and Urban Development (HUD) deputy
assistant secretary of multifamily housing, recently announced the appointment
of

Mark B. Van Kirk as

the new director of asset management.



The Office of Asset Management is responsible for the oversight of all multifamily
project assets, subsidized and insured, after the development phase. It develops
policy for and oversees field office asset management operations.



The office is also responsible for oversight of regulated property ownership and
management, routine mortgage servicing, default servicing, acquisition and
disposition of loans (mortgage notes) and properties, and management of properties
where the secretary is owner or mortgagee
-
in
-
possession.



Marilyn Edge had been serving as acting director for more than the last year and will
be returning to her role as deputy director of asset management.



About Mark Van Kirk


Before joining HUD, Mark was the Chief Operating Officer of Pillar Multifamily, LLC, a
Fannie Mae DUS Lender.


Mark co
-
started the business in 2005 as a de novo DUS
Lender. Mark was also with Fannie Mae for almost 10 years in the multifamily
division focused on multifamily credit, asset and portfolio management before
starting a Pillar Multifamily, LLC.











By:

Nancy
Libson

Published On: Mar 20, 2012








leadingage.org




4

Jan
W. Haber has worked as an Attorney
-
Advisor in HUD’s Atlanta the Office
of Counsel since 1990. During that time, she has worked in the legal areas
of fair housing, litigation and
program
s
ervices
.


Currently
, Ms. Haber has responsibility for advising HUD staff and HUD’s
industry partners on issues relating to
property
d
isposition
, multifamily
housing (development and asset management), public housing and
community planning and development (CPD).


Ms
. Haber holds a Bachelor of Arts degree from the University of California
at Los Angeles and a
Juris

Doctor degree from Southwestern School of Law.
She is married and has two children.


5


Jim Reed has been the Senior Vice President of Permanent Loan Servicing
and Asset Management at Oppenheimer Multifamily Housing and
Healthcare Finance since November of 2011. Jim has been in the Mortgage
Banking industry since 2001 spending a large part of this time as Vice
President of Servicing Acquisitions at
Berkadia

(f/k/a GMAC Commercial
Mortgage and
Caprmark

Finance Inc.) where his supervisory role was
largely related to the valuation of acquired CMBS servicing rights. Prior to
his current position at Oppenheimer Multifamily, Jim spent several years at
GMAC
ResCap
/Ally Bank in various roles including Risk Manager of
ResCap’s

Servicing Valuation and Analytics team.


At Oppenheimer Multifamily Jim is charged with oversight of the firm’s
FHA/GNMA loan servicing operation as well as asset management
functions that include Default Modifications, TPAs, and Financial Statement
Analyses.


Jim received his BA from Penn State University and his MBA in Operations
Management from Temple University.


6

John E. Vihstadt is a partner with the Washington, D.C. law firm of
Krooth

&
Altman LLP (
www.krooth.com
)
.
Mr. Vihstadt concentrates in lender
representation
in HUD insured multifamily housing and healthcare
financing
transactions nationwide. His practice also includes government
and legislative
affairs
as
K&A is
counsel to the Committee on Healthcare
Financing, a trade association specializing in HUD Section 232 (assisted
living/nursing facility) and 242 (hospital) issues.


Prior
to joining K&A in 1989, Mr. Vihstadt served as Executive Assistant to
the President of
Ginnie

Mae and was Republican Counsel to the Select
Committee on Aging, U.

S. House of Representatives. Mr. Vihstadt received
his B.A. degree and J.D. degree from the University of Nebraska.


One
of John’s primary career goals is to dine at every federal building
cafeteria across the country that includes a multifamily HUD office.


7


Primary handbook used by Field
O
ffice and Headquarters Multifamily Housing
staff in carrying out their asset management and loan servicing responsibilities



Directed to and used by owners, lender, tenants, and other program participants



Handbook has not been substantially revised since 1992



Extensive HUD/MBA dialogue on revisions



HUD’s Audrey Hinton & Eric Ramsey taking HUD lead



MBA’s Eileen Grey and Walker & Dunlop’s Sharon Walker leading industry
comments

8


Unit I…….Introduction



Unit II……Getting Started



Unit III…...Emergency and Disaster Assistance



Unit IV……Enforcement



Unit V…….HUD
-
Held Servicing



Unit VI……Preservation



Unit VII…...Project Monitoring



Unit VIII…..Property Disposition



Unit IX…….Reserves and Escrows



Unit X……..Servicing Troubled Projects



Unit XI…….Subordinate Debt

9

Introduction



A.

Organization of Handbook




B.

Goals, Responsibilities and Relationships




C.

Changing Concepts






10

4350.1 Draft TOC (4
-
13)


Getting Started



A.

Basic Document Files




B.

Initial Servicing



C.

Mortgagor Structures



D.

Previous Participation



E.

Record Keeping Systems



F.

GNMA
–

It’s Role and Organization

11

4350.1 Draft TOC (4
-
13)


Emergency and Disaster Assistance



A.

Relocation




B.

Section 8 Pass
-
Through Leases




C.

Multifamily Emergency/Disaster Guidance



(Ch. 38 of 4350.1)

12

4350.1 Draft TOC (4
-
13)


Enforcement



A.

Audits (I.G., GAO)



B.

Department Enforcement Center (DEC)



C.

Civil Rights
–

Related Requirements



D.

Mortgagor Requirements



E.

Tools
–

LDP, Informal Reviews, Debarments, etc.



13

4350.1 Draft TOC (4
-
13)


HUD
-
Held Servicing




A.

Assignment of Mortgage



B.

Foreclosures



C.

Mortgage Sales



D.

Workouts



14

4350.1 Draft TOC (4
-
13)


Preservation



A.

Combining Section 8 Contracts



B.

Decoupling



C.

Emergency Low
-
Income Housing Preservation Act



(ELIHPA) and Low
-
Income Housing Preservation



and Resident Homeownership Act of 1991(LIHPRHA)



D.

Flexible Subsidy



E.

Mark
-
to
-
Market (M2M)



F.

Nonprofit Proceeds Notice



G.

Partial Release of Security


15

4350.1 Draft TOC (4
-
13)


Preservation (cont.)



H.

Prepayments, Lockouts, and Penalties




I.

Section 8 HAP Assignment




J.

Surplus Cash Analysis



K.

Tax Credits and Subsidy Layering



L.

Section 8(bb)



M.

Section 212



N.

Use Agreements



O.

Releases and Satisfactions

16

4350.1 Draft TOC (4
-
13)


Project Monitoring



A.

Financial Statements/FASS



B.

Monthly Accounting Reports



C.

Commercial and Ground Leases



D.

Infestations



E.

Insurance and Loss Drafts



F.

Management and Operating Review



G.

Physical Inspections/PASS/Reverse Auctions

17

4350.1 Draft TOC (4
-
13)


Project
Monitoring (cont.)



H.

Preventing Defaults




I.

Preventing Mortgage Assignments



J.

Updating
iREMS



K.

Multifamily Delinquency and Default Reporting


System (MDDR)



L.

Environmental


18

4350.1 Draft TOC (4
-
13)


Property Disposition



A.

Pre
-
Foreclosure/Troubled Project Consultation



B.

Relocation



1.

HAP Abatement



2.

Vouchers



3.

PD Responsibilities



4.

FO/Hub Responsibilities



C.

Property Management



1.

MIP



2.

HUD
-
Owned (Deed
-
in
-
lieu)

19

4350.1 Draft TOC (4
-
13)


Property Disposition (cont.)


D.

Sales



1.

Foreclosures




A.

Types of Default




B.

Bankruptcy




C.

One Time
R
ight
T
o
C
ure




D.

The Foreclosure
R
ecommendation




E.

The Use Agreement





2.

Unit of Local Government (HUD
-
Owned) Sales




A.

Reverter

Deeds




B.

Equity Participation




C.

The Special Warranty Deed





3.

Terms and Conditions of Sales





4.

How the PD Center Advertises
S
ales and Listserv

20

4350.1 Draft TOC (4
-
13)


Property Disposition (cont.)



E.

Post
-
Sale Monitoring



1.

FO responsibilities






2.

PD responsibilities




a.

Repairs




b.

Up
-
Front Grant (UFG)






3.

Post
-
Sale Requests




a.

Conveyance




b.

Sale/
Refi




c.

LIHTC
–

pass
-
through leases




d.

The equity review

21

4350.1 Draft TOC (4
-
13)


Reserves and Escrows




A.

General Operating Reserves



B.

Reserve for Replacements



C.

Residual Receipts



D.

Section 202 Debt Service Reserves



E.

Special Escrows
–

Pre
–

and Post Final





Endorsement



F.

LIHTC Reserves



G.

New Projects with Special Escrows

22

4350.1 Draft TOC (4
-
13)


Servicing Troubled Projects




A.

Mortgage Modifications



B.

Partial Payment of Claims



C.

Risk Management/Watch List/MROC




D.

Refunding Tax
-
Exempt Bonds




E.

1
-
10 Scoring




F.

The
Ginnie

Mae Security


23

4350.1 Draft TOC (4
-
13)


Subordinate Debt




A.

Conventional Loans



B.

Liens



C.

Operating Loss Loans



D.

Subordination of Section 202 Loans



E.

Supplemental Loans



F.

Tax Credits and Subsidy Layering


24

4350.1 Draft TOC (4
-
13)


QUESTIONS?


THANK YOU!

25