New MBA Commercial Property Inspection Form Reflects Industry Collaboration
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As of Jan. 1, a new property inspection form now exists for use within the commercial real estate industry. Part of an industry and MBA effort, the new form is called the MBA Standard Inspection Form.
The form is based on Fannie Mae rating definitions–previously there were two distinct forms, neither of which had been revised in a number of years.
Freddie Mac and others in the industry have agreed to adopt the new MBA Standard Inspection Form, and the Mortgage Bankers Association has provided a reference guide for member use.
Dan Olsen, Senior Vice President at Key Bank, and a long-time MBA member who has participated in multiple roles, described the conversations around the change, noting it came up at an April 2023 meeting with master servicers and Freddie Mac officials.
At the meeting, concerns about the previous MBA form were raised, including a resulting “spiky” bell curve, Olsen said. That sparked a review of the definitions.
Based on those conversations–and through industry effort including a MBA working group and the CRE Financial Council, among others–the new form came into fruition.
“The MBA and the industry [are] always striving to be current, and in line with the marketplace,” Olsen noted. “Therefore, change is inevitable and we change with the market as needed.”
“I’ve been in the industry since 2007 and have seen various versions of the inspection form. I am extremely proud of this version for two reasons,” Jacky Salazar, MBA Director of Commercial Multifamily Finance, said. “One, I got to see firsthand the MBA members come together for the betterment of the industry, which only speaks to the value in MBA. Two, moving to one inspection rating will be a tremendous help to everyone in the industry.”
If you’d like to be part of future conversations, joining MBA’s Asset Manager Peer Group or Servicer Council offers you a valuable opportunity to engage in ongoing conversations and collaborations, address common challenges and contribute to enhancing the inspection process, MBA officials said in a release.
There are other opportunities related to evolving industry standards as well, MBA officials noted.
“Now is the time to get involved with MISMO if you are in commercial real estate,” said Mike Flood, MBA Senior Vice President, Commercial/Multifamily Policy and Member Engagement. “Fannie and Freddie have agreed to move to one inspection report, and the industry has the opportunity to improve a form used by over half the industry.”
