In an effort to summarize the highlights of the LEAN Email Blasts that we receive, and rarely have time to review in a timely fashion, we at Pepper Hamilton are providing this quick synopsis of the latest LEAN update. Our aim is to provide pertinent information succinctly as a roadmap to the LEAN Email Blasts, not to replace the LEAN Email Blasts. We hope you find these summaries helpful. Here is a link to the complete April 30, 2015 LEAN Blast.
Section 232 Healthcare Portal Is Operational
The Portal is operational as of April 21, 2015. Instructions for accessing and using the Portal are available on HUD's website.
ORCF Policy Drafting Table
ORCF announced the ORCF Policy Drafting Table, a website that ORCF will use to post links to certain draft policy changes for industry feedback.
Monitoring Projects That Have New Units in Lease-Up
The September 1, 2011 Email Blast discussed procedures for new units that require lease-up. ORCF uses HUD Form 91128 (Initial Operating Deficit Escrow Calculation Template) to calculate if the Initial Operating Deficit Escrow is necessary and to monitor the project’s lease-up. In the next few weeks, ORCF will concentrate on Asset Management’s monitoring of such projects and will reach out to the servicing lenders on these loans to ensure there is standardized reporting — including receipt of HUD Form 91128 during lease-up.
Delegated Approval of Reserve for Replacement (R4R) Requests and Non-Critical Repair Escrow Administration
Chapter 3 of the Asset Management portion of the Section 232 Handbook describes the optional lender review and delegated approval of certain R4R requests and Non-Critical Repair Escrow Administration. The logistics of requesting lender approval are now posted:
For Reserve for Replacement Requests (R4R):
For Non-Critical Repair Escrow Administration:
Further Streamlining of Interest Rate Reduction Submissions
ORCF has performed more than 260 Interest Rate Reduction (IRR) reviews to date, but it is still trying to streamline the process. The ORCF IRR Checklist and the Lender Analysis and Recommendations document have been revised in an effort to promote efficiency in reviews and to avoid redundancy in document submission by lenders.
Further Clarification on Quality Control Plans
In accordance with the Section 232 Handbook, Section I, Chapter 2.9, Lender Quality Control Plans (QC Plans) and Quality Control Reviews are now required. As stated in the Handbook, the lender may submit the Section 232 QC Plan as part of the overall QC Plan that incorporates MAP activity. As stated in the February 25, 2015 LEAN Blast, low-volume LEAN lenders may request a waiver.
TEAM TSI Portal Access and Training
The TEAM TSI Portal provides lenders with the ability to look up current survey information on FHA-insured skilled nursing facilities. Information available through the TEAM TSI Portal includes actual citations; Special Focus, Standard, Complaint and Life Safety Inspections; and other facility-related information. See the LEAN Blast for further information, including how to access the TEAM TSI Portal.
Corrections Made to ORCF Documents
Recently, a few errors/inconsistencies were corrected in ORCF form documents. Corrections were made to the Guide for Opinion of Borrower’s Counsel (HUD-91725-ORCF); the Guide for Opinion of Operator’s Counsel (HUD-92325-ORCF); the Management Certification – Residential Care Facility (HUD-9839-ORCF); and the Firm Commitments (a)(7), (f), (NC Single), and (NC Two Stage).
From the Closing Corner
Reminder Regarding Mortgage Note Endorsement Panel
Due to a change in how GNMA custodians handle mortgage notes, ORCF will accept insertion of the title (“Authorized Agent”) and printed name of the HUD signatory under the HUD signature line in the endorsement panel of the Mortgage Note.