Freddie Mac Updates Property Condition Assessment Requirements

In recent updates, Freddie Mac has introduced significant changes to its Property Condition Assessment (PCA) process. One of the key revisions includes the introduction of a new cost category, PR-90, which focuses on deficiencies that require attention within 90 days of origination.

This new category is designed to address imminent Life Safety Hazards or other defects that could cause ongoing substantive damage if left unrepaired. In addition, all other Priority Repairs must be attended to within 180 days after the origination date. The revised electrical requirements are another major change, aimed at ensuring properties have adequate capacity and overload protection.

The updates went into effect last week, and all new reports should now be conducted in accordance with the revised guidelines. Furthermore, these changes will soon be incorporated into the Servicer's Guide, which outlines Freddie Mac's requirements for property inspections.

In particular, the updated guide includes guidance on evaluating a property's electrical capacity and overload protection, as well as identifying the most urgent Priority Repairs (PR-90) during the PCA process. These updates are expected to come into effect within the first half of May 2015.

For those interested in contacting Freddie Mac regarding these changes, please note that their phone number is .

The new PR-90 category will be included on Form 1105 of the Freddie Mac PCA, and all sellers and servicers should familiarize themselves with the revised requirements to ensure compliance. By understanding these updates, you can better navigate the PCA process and ensure a smoother transaction for all parties involved.

To learn more about Freddie Mac's updated requirements or seek guidance on how to implement these changes, please contact their team directly.

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