Recently we have noticed that more and more multifamily and commercial lenders are seeking ways to lower their overall operating expenses during these tight market periods by converting their fixed cost to a variable (pay by the item cost).  

As a multifamily and/or commercial lender, most likely you are using salaried personnel to:   conduct the required annual property inspections, analyze the income and expense data that is being received from your borrowers, and prepare a written report for your senior management, shareholders and/or regulators.

1.    QC-MAC's Property Check Services offers you the following:

        Property Inspections:

A physical On-Site Property Inspection of each property to assess the condition of the following items ...

a. Type of Property b. Property Description c. Current Occupancy d.If the Property is for Sale e. If the Site Data has Changed

f. Type of Construction g. Parking Facilities h. Property Conditions i. Neighborhood Assessment  j. Photos of the Property

We will also take photos of deferred maintenance and include these findings in the Inspector's Summary Comments and Certification.

2.     QC-MAC's Loan Management Services offers you the following:

Loan Management (Analysis of Income and Expense Data)

From the data received from the borrowers and/or the lender, QC-MAC will provide you with a report containing the following information:

a. An analysis of the property's previous operating history that is provided by either the appraisal as of the date of the initial loan approval or the most recent operating history received from the borrower.   The previous operating history data will be used as the basis for the beginning analysis.

b. Analyze the most current operating history provided by the borrower.   If the current operating history is less than the most recent 12-month history, a determination will be made to see if the information provided is reliable enough to determine a reasonable value.

c. From the information obtained, QC-MAC will provide a current stabilized Net Operating Income (NOI).   The previous and current operating history will be used to calculate a current NOI with an explanation of variances and/or our rationale that was used to establish the NOI.

d. Determine the best estimate of value by using current stabilized Gross Rent Multiplier (GRM) and/or NOI and the previous appraisal value indicators to estimate current value with explanations of variances (if necessary).

e. Based on the analysis from the information received, QC-MAC will determine if the subject loan should be Risk Weighted 100% or 50%.

f. Review the current Title information (Property Profile) to determine if the Borrower(s) have transferred the subject property to another party without proper acknowledgement and approval of the lender.

g. Review the current Title information to determine if the Borrower(s) have obtained secondary financing on the subject property without proper acknowledgement and approval of the lender.

h. Review the insurance information to determine that the policy is still in effect and that the coverage is sufficient to provide the lender with proper coverage for its unpaid principal balance and/or replacement value.

i. Determine if any physical changes to the property have occurred such as number of units changed, stipulated code violations, and/or building code violations.

After all of the above-referenced tasks have been completed, QC-MAC will prepare a final report for the lender to present to its senior management, shareholders, and/or regulators.  

You may contract separately for our Property Inspections Services or our Loan Management Services.   You also have the option of contracting for both services under one agreement.