WASHINGTON, D.C. 20549
Check the appropriate box to indicate
the filing obligation to which this form is intended to satisfy:
Indicate by check mark whether the securitizer has no activity to report for the initial period pursuant to Rule 15Ga-1(c)(1): [_]
Indicate by check mark
whether the securitizer has no activity to report for the quarterly period pursuant to Rule 15Ga-1(c)(2)(i): [_]
Indicate by check mark whether the securitizer has no activity to report for
the annual period pursuant to Rule 15Ga-1(c)(2)(ii): [_]
[X] Rule 15Ga-2 under
the Exchange Act (17 CFR 240.15Ga-2).
Item 2.01 Findings and Conclusions of a Third Party
Due Diligence Report Obtained by the Issuer
See Report of Independent Accountants on Applying Agreed-Upon Procedures, dated November 6, 2023, of Ernst & Young LLP, attached as Exhibit 99.1 to this report.
Pursuant to the requirements of the Securities Exchange Act of 1934, the reporting entity has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Exhibit 99.1
|
Ernst
& Young LLP Tel: +1 212 773 3000
One Manhattan West ey.com New York, NY 10001 |
Report of Independent Accountants on Applying Agreed-Upon Procedures
Citi Affordable Depositor LLC (the “Depositor”)
Citigroup Global Markets
Inc.
Citibank, N.A.
Federal Home Loan Mortgage Corporation (“Freddie Mac”)
(collectively, the “Specified Parties”)
Re: Freddie Mac
Structured Pass-Through Certificates (SPCs) Series ML-19
FRETE 2023-ML19 Trust
Multifamily
ML Pass-Through Certificates, Series 2023-ML19
We have performed the procedures enumerated in Attachment A, which were agreed to and acknowledged as appropriate by the Specified Parties, for the intended purpose of
assisting the Specified Parties in evaluating the accuracy of certain information with respect to the Loans (as defined herein) contained on the Data Files (as defined herein) (the “Subject Matter”) relating to the Freddie Mac Structured
Pass-Through Certificates (SPCs) Series ML-19 and FRETE 2023-ML19 Trust Multifamily ML Pass-Through Certificates, Series 2023-ML19 securitization transaction (the “Transaction”) as of 6 November 2023. This report may not be
suitable for any other purpose. The procedures performed may not address all of the items of interest to a user of the report and may not meet the needs of all users of the report and, as such, users are responsible for determining whether the
procedures performed are appropriate for their purposes. The appropriateness of these procedures is solely the responsibility of the Specified Parties identified in this report. No other party acknowledged the appropriateness of the
procedures. Consequently, we make no representation regarding the appropriateness of the procedures described in Attachment A, either for the purpose for which this report has been requested or for any other purpose.
The procedures performed and our associated findings are included in Attachment A.
For the purpose of the procedures described in this report, the Depositor provided us with:
a. |
Certain electronic data files (the “Data Files”) that are described in Attachment A, |
b. |
Electronic copies of the loan files for the Loans, which contain various source documents (the “Source Documents”) relating to the
Loans and Properties (as defined herein) that secure the Loans, |
c. |
A list of characteristics on the Data Files (the “Compared Characteristics”), which are listed on Exhibit 1 to Attachment A, that
the Depositor instructed us to compare to information contained in the Source Documents, |
d. |
A list of characteristics on the Data Files (the “Recalculated Characteristics”), which are described in Attachment A, that the
Depositor instructed us to recalculate using information on the Data Files, |
e. |
A list of characteristics on the Data Files (the “Provided Characteristics”), which are listed on Exhibit 2 to Attachment A, on
which the Depositor instructed us to perform no procedures, |
f. |
A draft of the preliminary information circular for the Transaction (the “Draft Preliminary Information Circular”) and
|
g. |
Instructions, assumptions and methodologies, which are described in Attachment A. |
The procedures included in Attachment A were limited to comparing or recalculating certain information that is further
described in Attachment A. The Depositor is responsible for the Subject Matter, Data Files, Source Documents, Compared Characteristics, Recalculated Characteristics, Provided Characteristics, Draft Preliminary Information Circular and the
determination of the instructions, assumptions and methodologies that are described herein. We were not requested to perform, and we have not performed, any procedures other than those listed in Attachment A with respect to the Data
Files. We have not verified, and we make no representation as to, the appropriateness, accuracy, completeness or reasonableness of the Source Documents, Provided Characteristics, Draft Preliminary Information Circular or any other information
provided to us by the Depositor upon which we relied in forming our findings. Accordingly, we make no representation and express no opinion or conclusion as to: (a) the existence of the Loans, (b) questions of legal or tax
interpretation or (c) the appropriateness, accuracy, completeness or reasonableness of any instructions, assumptions and methodologies provided to us by the Depositor that are described in this report. We undertake no responsibility
to update this report for events and circumstances occurring after the date hereof.
This agreed-upon procedures engagement was conducted in accordance with attestation standards established by the American Institute of
Certified Public Accountants (the “AICPA”). An agreed‑upon procedures engagement involves the practitioner performing specific procedures that the Specified Parties have agreed to and acknowledged to be appropriate for the
purpose of the engagement and reporting on findings based on the procedures performed. We were not engaged to, and did not, conduct an examination to express an opinion or a review to express a conclusion in accordance with attestation
standards established by the AICPA on any of the items referred to herein. Accordingly, we do not express such an opinion or conclusion. Had we performed additional procedures, other matters might have come to our attention that would
have been reported to you.
The agreed-upon procedures described in this report were not performed for the purpose of:
a. Satisfying any criteria for due diligence published by a nationally recognized statistical rating organization (a “rating
agency”) or
b. Making any findings with respect to:
i. Whether the
origination of the Loans conformed to, or deviated from, stated underwriting or credit extension guidelines, standards, criteria, or other requirements,
ii. The value of
the collateral securing the Loans,
iii. Whether the originator(s) of the Loans complied with federal, state or local laws or regulations or
iv. Any other factor or characteristic of the Loans that would be material to the likelihood that the issuer of the certificates that
are secured by the Loans will pay interest and principal in accordance with applicable terms and conditions.
We are required to be independent of the Depositor and to meet our other ethical responsibilities, as applicable
for agreed-upon procedures engagements set forth in the Preface: Applicable to All Members and Part 1 – Members in Public Practice of the Code of Professional Conduct established by the AICPA. Independence requirements for agreed upon
procedure engagements are less restrictive than independence requirements for audit and other attestation services.
This report is intended solely for the information and use of the Specified Parties and is not intended to be, and should
not be, used by anyone other than the Specified Parties. It is not intended to be, and should not be, used by any other person or entity, including investors and rating agencies, who are not identified in the report as Specified Parties, but
who may have access to this report as required by any law or regulation.
/s/ Ernst & Young LLP
6 November 2023
Background
For the purpose of the procedures described in this report, the Depositor indicated that:
a. |
The primary assets of the Transaction’s issuing entity will consist of 14 funding loans intended to be tax-exempt loans (the “Loans”) secured by multifamily mortgage loans
secured by 20 multifamily mortgaged real properties (the “Properties”) and |
b. |
The Loan identified on the Data Files as “Veranda West Apartments” (the “Veranda West Apartments Loan”) has a corresponding pari passu companion loan that will not be
an asset of the Transaction’s issuing entity (the “Veranda West Apartments Companion Non-Trust Loan,” and together with the Veranda West Apartments Loan, the “Veranda West Apartments Whole Loan”). |
Procedures performed and our associated findings
1. |
The Depositor provided us with: |
a. |
An electronic data file (the “Preliminary Data File”) that the Depositor indicated contains information relating to the Loans as of 1 November 2023 (the “Cut-Off
Date”) and |
b. |
Record layout and decode information related to the information on the Data Files. |
We performed certain procedures
on earlier versions of the Data Files and communicated differences prior to being provided the Data Files which were subjected to the procedures as described herein.
For each Loan on the
Preliminary Data File, we compared the Compared Characteristics listed on Exhibit 1 to Attachment A, as shown on the Preliminary Data File, to the corresponding information in copies of the Source Document(s) indicated on Exhibit 1 to Attachment A,
subject only to the instructions, assumptions and methodologies described in the notes on Exhibit 1 to Attachment A and the next paragraph(s) of this Item.
The Source Document(s) that we were
instructed by the Depositor to use for each Compared Characteristic are indicated on Exhibit 1 to Attachment A. Where more than one Source Document is listed for a Compared Characteristic, the Depositor instructed us to note agreement if the
value on the Preliminary Data File for the Compared Characteristic agreed with the corresponding information in at least one of the Source Documents listed for such Compared Characteristic on Exhibit 1 to Attachment A (except as described in the
notes on Exhibit 1 to Attachment A). We performed no procedures to reconcile any differences that may exist between various Source Documents for any of the Compared Characteristics listed on Exhibit 1 to Attachment A.
Additionally, for any Loan(s) listed in the table below, the Depositor provided us with the related draft Source Document(s) listed in the “Draft Source Document(s)” column of the table below.
Loan |
Draft Source Document(s) |
|
|
NAP |
NAP |
1. (continued)
For the purpose of the procedures described in this report, the Depositor instructed us to treat any “Draft Source Document(s)” listed in the table above as fully executed Source Document(s).
2. |
As instructed by the Depositor, we adjusted the information on the Preliminary Data File to correct all the differences we noted in performing the procedures described in the Item above and
provided a list of such differences to the Depositor. The Preliminary Data File, as so adjusted, is hereinafter referred to as the “Updated Data File.” |
3. |
Subsequent to the procedures described in the Items above, the Depositor provided us with an electronic data file (the “Final Data File,” which together with the Preliminary Data
File comprise the Data Files) that the Depositor indicated contains information relating to the Loans as of the Cut‑Off Date. |
Using information on the:
we compared each Compared Characteristic listed on Exhibit 1 to Attachment A, as
shown on the Final Data File, to the corresponding information on the Updated Data File and found such information to be in agreement.
a. |
First Payment Date and |
b. |
Mandatory Prepayment Date, |
as shown on the Final Data File, we recalculated the “Loan
Term (Original)” of each Loan (except for any Loan with “N/A” for the “Mandatory Prepayment Date” characteristic, as shown on the Final Data File, which are described in the succeeding paragraph(s) of this
Item). We compared this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
For the purpose of recalculating the
“Loan Term (Original)” characteristic for any Loan with “N/A” for the “Mandatory Prepayment Date” characteristic, as shown on the Final Data File, the Depositor instructed us to use the:
a. |
First Payment Date and |
as shown on the Final Data File. We compared this recalculated information to the corresponding information on
the Final Data File and found such information to be in agreement.
a. |
First Payment Date, as shown on the Final Data File, and |
b. |
First payment date that a payment of principal and interest is due following the conversion of the Loan to a permanent loan, as shown in the applicable
Source Document, |
and the additional instructions provided by the Depositor described in the succeeding paragraph(s) of
this Item, we recalculated the “IO Period” of each Loan (except for any Interest Only Loan(s) (as defined herein) and the Veranda West Apartments Loan, which are described in the succeeding paragraph(s) of this Item). We compared
this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
For certain Loans, the multifamily note Source Document may
contain language permitting the borrower to make principal payments at their option following the conversion date. For the purpose of recalculating the “IO Period” characteristic for the any Loan with this language, the Depositor
instructed us to ignore this option and assume that payments of interest only are made for the duration of the related “IO Period.”
For any Interest Only Loan, the Depositor
instructed us to use the “Loan Term (Original)” value on the Final Data File for the “IO Period” characteristic.
For the Veranda West Apartments Loan, for which the
related borrower is required to make monthly interest only payments and monthly principal and interest payments pursuant to the amortization schedule provided by the Depositor (the “Veranda West Apartments Loan Amortization Schedule”),
the Depositor instructed us to use the interest only term related to the Veranda West Apartments Loan, as shown on the Veranda West Apartments Loan Amortization Schedule.
We performed no
procedures to determine the appropriateness, accuracy, completeness or reasonableness of the instructions provided by the Depositor that are described in this Item.
6. |
Using the “First Payment Date,” as shown on the Final Data File, we recalculated the “Seasoning” of each Loan as of the Cut-Off Date. We compared this
recalculated information to the corresponding information on the Final Data File and found such information to be in agreement. |
b. |
Gross Interest Rate and |
c. |
Monthly Debt Service Amount (Amortizing), |
as shown on the Final Data File, and assuming each Loan has a
fixed level monthly payment, we recalculated the “Amortization Term (Original)” of each Loan (except for any Interest Only Loan(s), which are described in the succeeding paragraph(s) of this Item). We compared this
recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
For any Interest Only Loan, the Depositor instructed us to
use “0” for the “Amortization Term (Original)” characteristic.
c. |
Amortization Term (Original), |
as shown on the Final Data File, we recalculated the “Amortization Term (Remaining)”
of each Loan (except for any Interest Only Loan(s), which are described in the succeeding paragraph(s) of this Item). We compared this recalculated information to the corresponding information on the Final Data File and found such information
to be in agreement.
For any Interest Only Loan, the Depositor instructed us to use “0” for the “Amortization Term (Remaining)” characteristic.
as shown on the Final Data File, we recalculated the “Loan Term (Remaining)” of each
Loan. We compared this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
f. |
Mandatory Prepayment Date, |
g. |
Gross Interest Rate and |
h. |
Monthly Debt Service Amount (Amortizing), |
as shown on the Final Data
File, and the additional instructions provided by the Depositor described in the succeeding paragraph(s) of this Item, we recalculated the principal balance as of the “Mandatory Prepayment Date” (the “Mandatory Prepayment Date
Balance”) of each Loan with a “Mandatory Prepayment Date” characteristic other than “N/A,” as shown on the Final Data File (except for the Bryn Mawr Apartments Loan, Kaiser Portfolio Loan (both as defined herein)
and Veranda West Apartments Loan, which are described in the succeeding paragraph(s) of this Item), assuming all scheduled payments of principal and/or interest on the Loans are made and that there are no prepayments or other unscheduled
collections. We compared this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
10. (continued)
For the purpose of recalculating the “Mandatory Prepayment Date Balance” for the Bryn Mawr Apartments Loan, the Depositor instructed us to apply a principal payment of $10,448.00, which occurred
prior to the “First Payment Date,” as shown on the amortization schedule provided by the Depositor for the Bryn Mawr Apartments Loan.
For the purpose of recalculating the
“Mandatory Prepayment Date Balance” for the Kaiser Portfolio Loan, the Depositor instructed us to apply aggregate principal payments of $275,629.72, which occurred prior to the “First Payment Date,” as shown on the
amortization schedule provided by the Depositor for the Kaiser Portfolio Loan.
For the purpose of comparing the “Mandatory Prepayment Date Balance” for the Veranda West Apartments
Loan, the Depositor instructed us to use information on the Veranda West Apartments Loan Amortization Schedule to recalculate the “Mandatory Prepayment Date Balance” as the principal amount that is scheduled to be paid on
the “Mandatory Prepayment Date” after the principal component that is included in the scheduled payment that is due on the “Mandatory Prepayment Date” is applied to the principal balance of the Veranda West Apartments
Loan.
For the purpose of this procedure, the Depositor instructed us to:
a. |
Ignore differences of +/- $2 or less, |
b. |
Recalculate the “Mandatory Prepayment Date Balance” as the principal amount that is scheduled to be paid on the “Mandatory Prepayment Date” after the principal component (if
any) that is included in the scheduled payment that is due on the “Mandatory Prepayment Date” is applied to the principal balance of the corresponding Loan and |
c. |
Use “N/A” for the “Mandatory Prepayment Date Balance” characteristic for each Loan with a “Mandatory Prepayment Date” characteristic of “N/A,” as
shown on the Final Data File. |
We performed no procedures to determine the appropriateness, accuracy, completeness or reasonableness of the instructions provided by
the Depositor that are described in this Item.
g. |
Gross Interest Rate and |
h. |
Monthly Debt Service Amount (Amortizing), |
as shown on the Final Data File, and the additional instructions provided by the
Depositor described in the succeeding paragraph(s) of this Item, we recalculated the principal balance as of the “Maturity Date” (the “Maturity Balance”) of each Loan with a “Mandatory Prepayment Date”
characteristic of “N/A,” as shown on the Final Data File, assuming all scheduled payments of principal and/or interest on the Loans are made and that there are no prepayments or other unscheduled collections. We compared this
recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
11. (continued)
For the purpose of this procedure, the Depositor instructed us to:
a. |
Ignore differences of +/- $2 or less, |
b. |
Recalculate the “Maturity Balance” as the principal amount that is scheduled to be paid on the “Maturity Date” after the principal component (if any) that is included in the
scheduled payment that is due on the “Maturity Date” is applied to the principal balance of the corresponding Loan and |
c. |
Use “N/A” for the “Maturity Balance” characteristic for each Loan with a “Mandatory Prepayment Date” characteristic other than “N/A,” as shown
on the Final Data File. |
We performed no procedures to determine the appropriateness, accuracy, completeness or reasonableness of the instructions provided by the
Depositor that are described in this Item.
12. |
Using the “Cut-Off Date Loan Amount,” as shown on the Final Data File, we recalculated the “% of Cut-Off Date Pool Balance” of each Loan. We compared this recalculated
information to the corresponding information on the Final Data File and found such information to be in agreement. |
as shown on the Final Data File, we recalculated the “Administration Fee Rate” of each
Loan. We compared this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
a. |
Gross Interest Rate and |
b. |
Administration Fee Rate, |
as shown on the Final Data File, we recalculated the “Net Mortgage Interest Rate” of each
Loan. We compared this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
a. |
Monthly Debt Service Amount (IO), |
b. |
Monthly Debt Service Amount (Amortizing), |
as applicable, as shown on the Final Data File, and the additional instructions provided by the Depositor described in the
succeeding paragraph(s) of this Item, we recalculated the:
ii. |
Most Recent NCF DSCR (IO), |
of each Loan (except for the Veranda West Apartments Loan, which is described in the succeeding paragraph(s) of
this Item). We compared this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement.
For
the Veranda West Apartments Loan, the Depositor instructed us to use:
a. |
The “Monthly Debt Service Amount (Amortizing),” as shown on the Final Data File, for the purpose of recalculating the “Most Recent NCF DSCR” and “UW NCF DSCR”
characteristics and |
i. |
Monthly Debt Service Amount (IO), as shown on the Final Data File, and |
ii. |
Amortizing monthly debt service payment related to the Veranda West Apartments Companion Non-Trust Loan, as shown on the Veranda West Apartments Loan Amortization Schedule, |
for the purpose of recalculating the “Most Recent NCF DSCR (IO)” and “UW NCF DSCR (IO)”
characteristics.
For the purpose of this procedure, we were instructed by the Depositor to round each
characteristic listed in i. through iv. above to two decimal places.
For any Balloon Loan (as defined herein) or Fully Amortizing Loan (as defined herein), the Depositor instructed us to use
“N/A” for the “Most Recent NCF DSCR (IO)” and “UW NCF DSCR (IO)” characteristics.
We performed no procedures to determine the
appropriateness, accuracy, completeness or reasonableness of the instructions provided by the Depositor that are described in this Item.
a. |
Information on the Final Data File and |
b. |
The applicable calculation methodologies and assumptions that are described in the Draft Preliminary Information Circular, |
we recalculated the:
iii. |
Cut-Off Date Balance/Unit |
of each Loan (except for the Veranda
West Apartments Loan, which is described in the succeeding paragraph(s) of this Item). We compared this recalculated information to the corresponding information on the Final Data File and found such information to be in agreement. For
the purpose of this procedure, we were instructed by the Depositor to round the characteristics listed in i. through ii. above to the nearest 1/10th of one
percent.
For the Veranda West Apartments Loan, the Depositor instructed us to use:
i. |
Cut-Off Date Loan Amount, as shown on the Final Data File, and |
ii. |
Principal balance of the Veranda West Apartments Companion Non-Trust Loan as of the Cut-Off Date (the “Veranda West Apartments Companion Non-Trust Loan Cut-Off Date Loan Amount”),
as shown on the Veranda West Apartments Loan Amortization Schedule, |
for the purpose of recalculating the “Cut-Off Date LTV” and “Cut-Off Date
Balance/Unit” characteristics and
b. |
The “Mandatory Prepayment Date Balance,” as shown on the Final Data File, for the purpose of recalculating the “Maturity LTV” characteristic. |
We performed no procedures to determine the appropriateness, accuracy, completeness or reasonableness of the
instructions provided by the Depositor that are described in this Item.
17. |
Using the “Sponsor Name,” as shown on the Final Data File, we identified those Loans that had at least one common “Sponsor Name” (the “Related Borrower
Loans”). We compared the Related Borrower Loan information to the corresponding information on the Final Data File and found such information to be in agreement. |
|
Exhibit 1 to Attachment A Page 1 of 10 |
Compared Characteristics and Source Documents
Property
Information:
|
|
|
|
Street Address (see Note 2) |
Certificate of Occupancy, Engineering Report, Property Condition Assessment, Site Inspection Report, Plan and Cost Review or Title
Policy |
Property City |
Certificate of Occupancy, Engineering Report, Property Condition Assessment, Site Inspection Report, Plan and Cost Review or Title
Policy |
County |
Certificate of Occupancy, Engineering Report, Property Condition Assessment, Site Inspection Report, Plan and Cost Review, Title Policy or
USPS Internet Site |
Property State |
Certificate of Occupancy, Engineering Report, Property Condition Assessment, Site Inspection Report, Plan and Cost Review or Title
Policy |
Metropolitan Statistical Area (see Note 3) |
MSA Support File |
Zip Code |
Certificate of Occupancy, Engineering Report, Property Condition Assessment, Site Inspection Report, Plan and Cost Review, Title Policy or
USPS Internet Site |
Property Type |
Updated Appraisal Report, Engineering Report, Property Condition Assessment, Physical Needs Assessment or Site Inspection Report
|
Property Subtype |
UW Appraisal Report, Portfolio UW Appraisal Report, Updated Appraisal Report, Engineering Report, Property Condition Assessment,
Physical Needs Assessment or Site Inspection Report |
Year Built |
Conversion Risk Review, Property Condition Assessment, Physical Needs Assessment, Conversion Credit Memo, Conversion Review Memo or
Construction Risk Review |
Year Renovated |
Conversion Risk Review, Property Condition Assessment, Physical Needs Assessment, Conversion Credit Memo or Conversion Review
Memo |
UW Appraisal Value Date (see Note 16) |
UW Appraisal Report or Portfolio UW Appraisal Report |
UW Appraised Value (see Note 16) |
UW Appraisal Report or Portfolio UW Appraisal Report |
|
Exhibit 1 to Attachment A Page 2 of 10 |
Property Information: (continued)
|
|
|
|
Appraised Value |
Updated Appraisal Report |
Appraisal Valuation Date |
Updated Appraisal Report |
Seismic Insurance if PML >= 20% (Y/N) (see Note 4) |
Seismic Evaluation Report, Construction Risk Review, Engineering Report, Property Condition Assessment, Physical Needs Assessment or
Servicer Insurance Assessment |
Total Units (see Note 5) |
Rent Roll, Updated Appraisal Report or Site Inspection Report |
Unit of Measure |
Rent Roll or Updated Appraisal Report |
Monthly Rent Per Unit (see Note 6) |
Rent Roll and Tax Credit Compliance Report |
Occupancy As of Date (see Note 7) |
Rent Roll |
Occupancy % (see Note 8) |
Rent Roll |
Underwriting Information: (see Note 9)
|
|
|
|
3rd Most Recent Financial End Date |
Operating Statement Analysis Report |
3rd Most Recent EGI |
Operating Statement Analysis Report |
3rd Most Recent Expenses |
Operating Statement Analysis Report |
3rd Most Recent NOI |
Operating Statement Analysis Report |
3rd Most Recent NCF |
Operating Statement Analysis Report |
2nd Most Recent Financial End Date |
Operating Statement Analysis Report |
2nd Most Recent EGI |
Operating Statement Analysis Report |
2nd Most Recent Expenses |
Operating Statement Analysis Report |
2nd Most Recent NOI |
Operating Statement Analysis Report |
2nd Most Recent NCF |
Operating Statement Analysis Report |
Most Recent Financial End Date (see Note 10) |
Interim Financial Analysis Report or Operating Statement Analysis Report |
Most Recent EGI (see Note 10) |
Interim Financial Analysis Report or Operating Statement Analysis Report |
Most Recent Expenses (see Note 10) |
Interim Financial Analysis Report or Operating Statement Analysis Report |
Most Recent NOI (see Note 10) |
Interim Financial Analysis Report or Operating Statement Analysis Report |
Most Recent NCF (see Note 10) |
Interim Financial Analysis Report or Operating Statement Analysis Report |
UW EGI |
Underwriting Report |
UW Expenses |
Underwriting Report |
UW NOI |
Underwriting Report |
UW NCF |
Underwriting Report |
|
Exhibit 1 to Attachment A Page 3 of 10 |
Loan Information:
|
|
|
|
Optigo Lender |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Funding Loan
Agreement, Lease Agreement or Loan and Security Agreement |
Note Date |
Multifamily Note or Loan and Security Agreement |
Loan Purpose (New Construction/Rehabilitation/ Refinance/Immediate Perm) |
Conversion Credit Memo |
Conversion Date |
Notice of Conversion |
Original Loan Amount (see Note 18) |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease
Agreement, Transaction Summary Memo or Loan and Security Agreement |
Cut-Off Date Loan Amount (see Note 11) |
Servicer Balance Statement |
Gross Interest Rate |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease
Agreement, Transaction Summary Memo, Loan and Security Agreement or Escrow Break Notice |
Loan Amortization Type |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease
Agreement, Transaction Summary Memo or Loan and Security Agreement |
Monthly Debt Service Amount (IO) (see Note 12) |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease
Agreement, Transaction Summary Memo or Loan and Security Agreement |
Monthly Debt Service Amount (Amortizing) (see Notes 12 and 17) |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease
Agreement, Transaction Summary Memo or Loan and Security Agreement |
First Payment Date (see Note 13) |
Notice of Conversion, Multifamily Note or Loan and Security Agreement |
Payment Date (see Note 14) |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease
Agreement, Transaction Summary Memo or Loan and Security Agreement |
|
Exhibit 1 to Attachment A Page 4 of 10 |
Loan Information: (continued)
|
|
|
|
Maturity Date |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease Agreement,
Transaction Summary Memo or Loan and Security Agreement |
Mandatory Prepayment Date |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease Agreement,
Transaction Summary Memo, Notice of Prepayment or Loan and Security Agreement |
Accrual Basis |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease Agreement,
Transaction Summary Memo or Loan and Security Agreement |
Late Charge Grace Period |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Lease Agreement or Loan and Security
Agreement |
Prepayment Provision (see Note 15) |
Multifamily Note, Amended and Restated Multifamily Note, Amendment or Allonge to Multifamily Note, Notice of Conversion, Lease Agreement,
Escrow Break Notice or Loan and Security Agreement |
Title Vesting (Fee/Leasehold/Both) |
Title Policy |
Lien Position |
Title Policy |
Number of Properties |
Borrower Loan Agreement, Lease Agreement, Engineering Report or Property Condition Assessment |
Ground Lease Maturity Date |
Ground Lease Agreement, Ground Lease Rider, Ground Lease Estoppel, Ground Lease Analysis or Lease Agreement |
Additional Financing In Place (existing) (Y/N) |
Title Policy, Subordinate Financing Agreement, Intercreditor Agreement or Audited Financial Statement |
Additional Financing Amount (existing) |
Title Policy, Subordinate Financing Agreement, Intercreditor Agreement or Audited Financial Statement |
Additional Financing Description (existing) |
Title Policy, Subordinate Financing Agreement, Intercreditor Agreement or Audited Financial Statement |
Bond Counsel Name |
Opinion of Bond Counsel or Opinion of Governmental Lender |
Tax Credit Investor Name |
Audited Financial Statement, Amended and Restated Limited Partnership Agreement or Operating Agreement |
Reserve/Escrow Information: (see Note 11)
|
|
Tax Reserve (Initial) |
Servicer Balance Statement |
Tax Reserve (Monthly) |
Servicer Balance Statement |
|
Exhibit 1 to Attachment A Page 5 of 10 |
Reserve/Escrow Information: (see Note 11)
Insurance Reserve (Initial) |
Servicer Balance Statement |
Insurance Reserve (Monthly) |
Servicer Balance Statement |
Replacement Reserve (Initial) |
Servicer Balance Statement |
Replacement Reserve (Monthly) |
Servicer Balance Statement |
Other Reserve (Initial) |
Servicer Balance Statement |
Other Reserve (Monthly) |
Servicer Balance Statement |
Other Reserve Description |
Servicer Balance Statement |
Regulatory Agreement
Information:
|
|
|
|
Type of Regulatory Agreement(s) |
Regulatory Agreement, Regulatory Agreement Analysis, HAP Contract, HAP Agreement, Tax Credit Application or Tax Credit Reservation Letter
|
Description of Regulatory Agreement(s) |
Regulatory Agreement, Regulatory Agreement Analysis, HAP Contract, HAP Agreement, Tax Credit Application, Tax Credit Reservation Letter or Form
8609 |
Number of LIHTC Units |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Rental/Income/Age Restrictions (Y/N) |
Regulatory Agreement, Regulatory Agreement Analysis, HAP Contract, HAP Agreement, Tax Credit Application or Tax Credit Reservation Letter
|
Issuer |
Funding Loan Agreement or Trust Indenture |
Fiscal Agent Name |
Funding Loan Agreement or Trust Indenture |
Annual Fiscal Agent Fee ($) |
Funding Loan Agreement, Trust Indenture, Schedule of Fees or Fiscal Agent Invoice |
Annual Fiscal Agent Fee Payment Date |
Funding Loan Agreement, Trust Indenture, Borrower Loan Agreement or Regulatory Agreement |
First Annual Fiscal Agent Fee Payment Date |
Funding Loan Agreement, Trust Indenture, Borrower Loan Agreement or Regulatory Agreement |
Annual Governmental Lender Fee |
Funding Loan Agreement, Trust Indenture, Borrower Loan Agreement or Regulatory Agreement |
Affordable Units (<=30% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Affordable Units (<=50% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
|
Exhibit 1 to Attachment A Page 6 of 10 |
Regulatory Agreement Information: (continued)
|
|
|
|
Affordable Units (50-60% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Affordable Units (60-70% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Affordable Units (70-80% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Affordable Units (80-90% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
High Cost Affordable Units (90‑100% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Affordable LI Units (<=80% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Affordable LI Units (<=60% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Affordable VLI Units (<=50% AMI) |
Regulatory Agreement, Regulatory Agreement Analysis, Tax Credit Application or Tax Credit Reservation Letter |
Notes:
1. |
For any Loan listed in Table A1, the Depositor instructed us to use the information in the “Provided Value” column for the applicable characteristic listed in Table A1,
even if the information in the “Provided Value” column did not agree with the information that was shown in the applicable Source Document(s) or the applicable Source Document(s) were not provided to us. |
Table A1: |
|
|
|
Loan |
Characteristic |
Provided Value |
|
|
|
NAP |
NAP |
NAP |
We performed no procedures to determine the appropriateness, accuracy,
completeness or reasonableness of any “Provided Value” information in Table A1 that was provided by the Depositor.
2. |
For the purpose of comparing the “Street Address” characteristic, the Depositor instructed us to ignore differences that are due to standard postal abbreviations. |
|
Exhibit 1 to Attachment A Page 7 of 10 |
Notes: (continued)
3. |
For the purpose of comparing the “Metropolitan Statistical Area” characteristic, the MSA support file Source Document is a Microsoft Excel file labelled “Freddie
2023 ML#2_MSA Report_2023.08.10.xlsx” which was provided by the Depositor on 10 August 2023. |
4. |
For the purpose of comparing the “Seismic Insurance if PML >= 20% (Y/N)” characteristic, the Depositor instructed us to use “Yes” if the applicable Source
Document(s) indicate the PML is greater than or equal to 20% and seismic insurance is in place. The Depositor instructed us to use “No” if the applicable Source Document(s) indicate the PML is less than 20% or seismic
insurance is not in place. |
For the purpose of comparing the “Seismic Insurance if PML >= 20%
(Y/N)” characteristic, the servicer insurance assessment Source Document is a Microsoft Excel file labelled “FRETE 2023-ML19_Insurance Tape_2023.08.31.xlsx” which was provided by the Depositor on 31 August 2023.
5. |
For the purpose of comparing the “Total Units” characteristic, the Depositor instructed us to only include the residential units at the Property associated with each Loan, as
shown in the applicable Source Document(s). |
6. |
For the purpose of comparing the “Monthly Rent Per Unit” characteristic, the Depositor instructed us to use: |
a. |
Market rents for admin, vacant, model, leasing office or “down” units, |
b. |
In-place rents plus employee concessions for manager/employee units and |
c. |
In-place rents plus subsidized rents for occupied units, |
as shown in the rent roll Source
Document, and to ignore differences of +/- $1 or less.
7. |
For the purpose of comparing the “Occupancy As of Date” characteristic, the Depositor instructed us to use the last day of the applicable month if the applicable Source
Document(s) only indicated the month and year. |
8. |
For the purpose of comparing the “Occupancy %” characteristic, the Depositor instructed us to include occupied, admin, model, leasing office and manager/employee units as occupied
and to include vacant and “down” units as vacant, as shown in the rent roll Source Document. |
9. |
For the purpose of comparing the indicated characteristics, the Depositor instructed us to ignore differences of +/- $1 or less. |
10. |
For the purpose of comparing the indicated characteristics, the interim financial analysis report Source Document is a Microsoft Excel file labelled “Freddie ML19
(National) 2023_TTM 6.30.2023_8.30.2023.xlsx” which was provided by the Depositor on 14 September 2023. |
|
Exhibit 1 to Attachment A Page 8 of 10 |
Notes: (continued)
11. |
For the purpose of comparing the indicated characteristics, the servicer balance statement Source Document is a Microsoft Excel file labelled “Freddie 2023 ML 19 _Nov
2023.xlsx” which was provided by the Depositor on 13 October 2023. |
12. |
For the purpose of comparing the “Monthly Debt Service Amount (IO)” characteristic for any: |
a. |
Loan for which the “Loan Amortization Type” characteristic, as shown on the Preliminary Data File, is “Interest Only” (each, an “Interest Only Loan”)
or |
b. |
Loan for which the “Loan Amortization Type” characteristic, as shown on the Preliminary Data File, is “Partial IO” (each, a “Partial IO Loan”), |
and which has an “Accrual Basis” of “30/360,” as shown on the Preliminary Data File, which are described in the succeeding paragraph(s) of this Note), the Depositor
instructed us to recalculate the “Monthly Debt Service Amount (IO)” characteristic as 1/12th of the product of:
i. |
The “Original Loan Amount,” as shown on the Preliminary Data File, and |
ii. |
The “Gross Interest Rate,” as shown on the Preliminary Data File. |
For the
purpose of comparing the “Monthly Debt Service Amount (IO)” characteristic for any Interest Only Loan or Partial IO Loan which has an “Accrual Basis” of “Actual/360,” as shown on the Preliminary Data
File, the Depositor instructed us to recalculate the “Monthly Debt Service Amount (IO)” characteristic as 1/12th of the product of:
a. |
The “Original Loan Amount,” as shown on the Preliminary Data File, |
b. |
The “Gross Interest Rate,” as shown on the Preliminary Data File, and |
For any Interest Only Loan, the Depositor instructed us to use the “Monthly Debt Service Amount
(IO),” as shown on the Preliminary Data File, for the “Monthly Debt Service Amount (Amortizing)” characteristic.
For any Loan for which the “Loan Amortization
Type” characteristic is “Balloon” (each, a “Balloon Loan”) or “Fully Amortizing” (each, a “Fully Amortizing Loan”), as shown on the Preliminary Data File, the Depositor instructed us to
use “N/A” for the “Monthly Debt Service Amount (IO)” characteristic.
13. |
For the purpose of comparing the “First Payment Date” characteristic for any Loan where the notice of conversion Source Document does not define the first payment date
(except for the Loan identified on the Preliminary Data File as “Vista Village Apartments” (the “Vista Village Apartments Loan”), which is described in the succeeding paragraph(s) of this Note,) the Depositor instructed
us to assume that the “First Payment Date” is the “Payment Date” related to the first full interest accrual period following the “Conversion Date,” as shown in the applicable Source Document(s).
|
For the purpose of comparing the “First Payment Date” characteristic for the Vista Village Apartments Loan, the notice of
conversion Source Document defines the first payment date as “10/1/2018.” The Depositor instructed us to use “6/1/2020” for the “First Payment Date” characteristic which is the “Payment
Date” related to the first full interest accrual period following the “Conversion Date,” as shown in the applicable Source Document(s).
|
Exhibit 1 to Attachment A Page 9 of 10 |
Notes: (continued)
14. |
For the purpose of comparing the “Payment Date” characteristic, the Depositor instructed us to ignore any adjustments based on business day convention, as stated in the applicable
Source Document(s). |
15. |
For the purpose of comparing the “Prepayment Provision” characteristic, the Depositor instructed us to ignore any adjustments based on business day convention, as stated in the
applicable Source Document(s). |
For certain Loans, the applicable Source Document(s) may contain the following language:
“Prepayment Premium Period” means the period commencing on the date of this Note and ending on the date that is fourteen and one-half (14.5) years after the first Loan Payment Date
following the Conversion Date.”
For the purpose of comparing the “Prepayment Provision” characteristic for these Loans, the Depositor instructed us to assume
the “first Loan Payment Date following the Conversion Date” language described above is the applicable “First Payment Date,” as shown on the Preliminary Data File.
For certain Loans, the applicable Source Document(s) may contain the following language:
“If the prepayment is made at any time after
the date of this Note and ending on the date that is fourteen and one-half (14.5) years after the first Loan Payment Date following the Conversion Date (the “Prepayment Premium Period End Date”) the prepayment premium shall be the
greater of:”
“Notwithstanding the provisions of Paragraph 10 of this Note, no prepayment premium shall be payable with respect to any prepayment made on or after
the Prepayment Premium Period End Date.”
For the purpose of comparing the “Prepayment Provision” characteristic for these loans, the Depositor instructed us to assume the
“Prepayment Premium Period End Date,” as defined above, is open and no prepayment penalty is due on this date.
For certain Loans, the applicable Source Document(s) may contain the
following language:
“Lock-Out Period” means the tenth (10th) anniversary of the Conversion
Date.”
For the purpose of comparing the “Prepayment Provision” characteristic for these Loans, the Depositor instructed us
to assume the lock-out period means the period commencing on the “Note Date,” as shown on the Preliminary Data File, and ending on the tenth anniversary of the “Conversion Date,” as shown on the Preliminary Data File.
|
Exhibit 1 to Attachment A Page 10 of 10 |
Notes: (continued)
16. |
For any Loan on the Preliminary Data File that does not have “As Is” for the “UW Appraised Value Type” characteristic, the Depositor instructed us to use the
corresponding appraised value and date associated with such appraised value type, as shown in the applicable Source Document(s), for the “UW Appraised Value” and “UW Appraisal Value Date” characteristics,
respectively. |
For the purpose of comparing the “UW Appraised Value” characteristic for the Loan
identified on the Preliminary Data File as “Kaiser Portfolio” (the “Kaiser Portfolio Loan”), which is secured by three underlying Properties, the Depositor instructed us to use the sum of the individual “Hypothetical
Market Value As If Completed and Stabilized, subject to the restricted residential rents, including the proposed Section 8 rents” valuations, as shown in the UW appraisal report Source Document related to each Property.
17. |
For the purpose of comparing the “Monthly Debt Service Amount (Amortizing)” characteristic for the Loan identified on the Preliminary Data File as “Bryn Mawr
Apartments” (the “Bryn Mawr Apartments Loan”), the Depositor instructed us to recalculate the “Monthly Debt Service Amount (Amortizing)” characteristic using the “PMT” function in Microsoft Excel
and: |
a. |
The “Original Loan Amount,” as shown on the Preliminary Data File, |
b. |
1/12th of the “Gross Interest Rate,” as shown on the Preliminary Data File, and |
c. |
An original amortization term of 480, as shown in the notice of conversion Source Document. |
18. |
For the purpose of comparing the “Original Loan Amount” characteristic for the Kaiser Portfolio Loan, the multifamily note Source Document indicates an original principal balance
of “$10,620,000” and the notice of conversion Source Document indicates an original principal balance as of conversion of “$10,182,351.10.” The Depositor instructed us to use “$10,446,624” for the
“Original Loan Amount” characteristic, which is the amount the “Monthly Debt Service Amount (Amortizing)” was underwritten at with an original amortization term of 420, as shown in the notice of conversion Source
Document. |
We performed no procedures to determine the appropriateness, accuracy, completeness or reasonableness of the instructions, assumptions and methodologies provided by the
Depositor that are described in the notes above.
|
Exhibit 2 to Attachment A |
Provided Characteristics
Characteristic |
|
Property Name |
Loan No. / Property No. |
Berkadia Loan Number |
Master Servicer Fee |
Sub-Servicing Fee |
Trustee Fee |
CREFC Royalty Fee |
Engineering Reserve/Deferred Maintenance |
Single Purpose Borrowing Entity / Single Asset Borrowing Entity |
Crossed Loans |
Defeasance to Maturity (Y/N) |
Cash Management (Description or N/A) |
Replacement Reserve – Contractual – Cap ($ or N/A) |
Springing Reserve Type |
Springing Reserve Amount |
Green Advantage |
Non-Compliance Provisions (Y/N) |
Future Supplemental Financing (Y/N) |
Future Supplemental Financing Description |
Tax Credit Syndicator Name |
Environmental Impact Indicator |
Description of Environmental Impact Indicator |
Furthering Economic Opportunity |
UW Appraised Value Type |
Appraised Value Type |
Sponsor Name |
Footnotes |
Note: We performed no procedures to determine the appropriateness, accuracy, completeness or reasonableness of the Provided
Characteristics.