Yield PRO TV Rate Desk June 5, 2020

June 5, 2020 edition of Yield PRO TV Rate Desk with Michael Thomas. HUD approval mitigants, 223(f) escrows and new HUD issued stat limits.

Rate Desk notes June 5, 2020
• Indices up, S&P, NASDAQ near record highs
• Crude $38.97
• UST yields .83
• 223(f) 2.65%
• 221(d)(4) 3.30%
• Fannie 2.85%
• Freddie 3.20%
• Key mitigants:
o Liquidity
o High DSCR
o Strong management
• 223(f) escrows (in addition to R4R and MIP)
o Non-critical repairs
o 9-mo DS reserve
o 250% of NC repairs
o 10 or 20% assurance of completion
• HUD issued new stat limits
• No changes to the major markets
• 315% allowance to HCP on project-by-project basis