EX-99.1 2 d812143dex991.htm EX-99.1 EX-99.1
Exhibit 99.1

 
Deloitte & Touche LLP
Suite 400
Harborside Plaza 10
Jersey City, NJ 07311
USA

Tel:   +1 212 937 8200
Fax:  +1 212 937 8298
www.deloitte.com



 
 
Federal Home Loan Mortgage Corporation
1551 Park Run Drive
McLean, Virginia 22102
  
   
   
Independent Accountants’ Report
on Applying Agreed-Upon Procedures


We have performed the procedures described below relating to certain information with respect to a portfolio of mortgage assets in connection with the proposed offering of certain classes of FREMF 2024-K163 Mortgage Trust, Multifamily Mortgage Pass-Through Certificates, Series 2024-K163 and Freddie Mac Structured Pass-Through Certificates, Series K-163.  Federal Home Loan Mortgage Corporation (“Freddie Mac” or the “Company”) is responsible for the information provided to us, including the information set forth in the Data File (as defined herein).

The Company has agreed to the procedures and acknowledged that the procedures performed are appropriate to meet the intended purpose of evaluating the accuracy of certain information set forth in the Data File. Additionally, Wells Fargo Securities, LLC and J.P. Morgan Securities LLC (collectively with the Company, the “Specified Parties”) have agreed to the procedures and acknowledged that the procedures performed are appropriate for their purposes.  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.  Consequently, we make no representations regarding the appropriateness of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

We performed certain procedures on earlier versions of the Data File and communicated differences prior to being provided the final Data File which was subjected to the procedures described below.

Capitalized terms used but not defined herein are used with the meanings as described in “The Bond Market Association's Standard Formulas for the Analysis of Mortgage-Backed Securities and Other Related Securities.”

Procedures and Findings

On April 23, 2024, representatives of Freddie Mac provided us with a computer generated mortgage loan data file and related record layout (the “Data File”) containing 53 mortgage loans that are secured by 53 mortgaged properties (the “Mortgage Assets”).

   
Member of
Deloitte Touche Tohmatsu Limited
2

From March 14, 2024 through April 23, 2024, representatives of Freddie Mac provided us with certain Source Documents (as defined in the attached Appendix A) related to the Mortgage Assets.  We were not requested to perform, and we did not perform, any procedures with respect to the preparation or verification of any of the information set forth on the Source Documents and we make no representations concerning the accuracy or completeness of any of the information contained therein.  In certain instances, our procedures were performed using data imaged facsimiles or photocopies of the Source Documents.  In addition, we make no representations as to whether the Source Documents are comprehensive and valid instruments and reflect the current prevailing terms with respect to the corresponding Mortgage Assets.

At your request, for each of the Mortgage Assets set forth on the Data File, we compared certain characteristics (except for the characteristics identified as “None - provided by Freddie Mac” on Appendix A) set forth on the Data File (the “Characteristics” as indicated on Appendix A) to the corresponding information set forth on or derived from the corresponding Source Documents and found them to be in agreement.

We make no representations as to (i) the actual characteristics or existence of the underlying documents or data comprising the Mortgage Assets underlying the Data File or the conformity of their respective characteristics with those assumed for purposes of the procedures described herein, (ii) the existence or ownership of the Mortgage Assets or (iii) the reasonableness of any of the aforementioned assumptions, information or methodologies.

It should be understood that we make no representations as to questions of legal interpretation or as to the sufficiency for your purposes of the procedures enumerated in the preceding paragraphs.  Also, such procedures would not necessarily reveal any material misstatement of the information referred to above.  We have no responsibility to update this report for events or circumstances that occur subsequent to the date of this report.

We were engaged by the Company to perform this agreed-upon procedures engagement and conducted our engagement in accordance with attestation standards established by the American Institute of Certified Public Accountants (“AICPA”). An agreed-upon procedures engagement involves the practitioner performing specific procedures that the engaging party has 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 conduct, and did not conduct, an (i) audit conducted in accordance with generally accepted auditing standards or (ii) examination or a review engagement conducted in accordance with attestation standards established by the AICPA, the objective of which would be the expression of an opinion or conclusion, respectively, on the information in the Data File.  Accordingly, we do not express such an opinion or conclusion, or any other form of assurance, including reasonable assurance.  Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

We are required to be independent of the Company 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.

3

None of the engagement, procedures or report was intended to address, nor did they address, the (i) conformity of the origination of the assets to stated underwriting or credit extension guidelines, standards, criteria or other requirements, (ii) value of collateral securing such assets or (iii) compliance of the originator of the assets with federal, state, and local laws and regulations.

None of the engagement, procedures or report were intended to satisfy, nor did they satisfy, any criteria for due diligence published by a nationally recognized statistical rating organization.

This report is intended solely for the use and information of the Specified Parties and is not intended to be and should not be used by anyone other than the Specified Parties.

Yours truly, 

/s/ Deloitte & Touche LLP

April 23, 2024
Appendix A
Source Documents

For purposes of performing the agreed-upon procedures described herein and at your request, we relied upon the following source documents as provided to us by representatives of Freddie Mac, with respect to each of the Mortgage Assets (the “Source Documents”):

Promissory note, consolidated, amended and restated promissory note and/or loan modification (collectively, the “Note”);

Loan agreement, multifamily loan and security agreement and/or amendment to multifamily loan and security agreement and other loan documents (collectively, the “Loan Agreement”);

Mortgage, deed of trust, indemnity deed of trust and/or security instrument (collectively, the “DOT”);

Closing statement (the “Closing Statement”);

Escrow agreement and/or list of escrows held (collectively, the “Escrow Agreement”);

Letter of credit (the “Letter of Credit”);

Servicing report, record and/or provided electronic file (collectively, the “Servicing Report”);

Commitment letter, exhibit A and/or ERLA (collectively, the “Commitment”);

Electronic data file containing certain regulatory information for specific Mortgage Assets (the “Regulatory Agreement Summary”);

Guaranty agreements and/or exceptions to non-recourse agreement (collectively, the “Guaranty”);

Title policy or pro-forma title policy (collectively, the “Title Policy”);

Ground lease and/or ground lease estoppel (collectively, the “Ground Lease”);

Real estate property appraisal report (the “Appraisal Report”);

United States Postal Service website – www.usps.com (the “USPS”);

Zoning report or zoning summary (collectively, the “Zoning Report”);

Property condition report or physical risk report (collectively, the “Engineering Report”);

Phase I environmental report (the “Phase I Report”);

Phase II environmental report (the “Phase II Report”);

MSA file report (the “MSA File”);

Seismic report or zoning map (collectively, the “Seismic Report”);

Final investment brief, underwriter’s summary report and/or financial update (collectively, the “Investment Brief”);

Green Assessment Report (the “Green Assessment”);

Property inspection and lease audit (the “Property Inspection and Lease Audit”);

Asset Summary of Mortgage Loan (the “ASR”);

Borrower rent roll (the “Rent Roll”);

Commercial lease (the “Commercial Lease”);

Property insurance certificate, environment insurance certificate, Form 1113 and/or MICT screenshot (collectively, the “Proof of Insurance”);

Secondary financing document, subordinate promissory note, subordinate loan agreement, subordination agreement and/or modification, renewal and extension agreement (collectively, the “Secondary Financing Document”);

Property management agreement and/or assignment of management agreement (collectively, the “Management Agreement”);

Cash management agreement, lockbox agreements and/or legal summary (collectively, the “Cash Management Agreement”);

Form 1115 (the “Form 1115”);

Non-consolidation opinion (the “Non-Consolidation Opinion”);

Cross-collateralization agreement (the “Cross-Collateralization Agreement”);

Trustee bid letter (the “Trustee Bid”); and

CRA report (the “CRA Report”).

*****

 
 Characteristic
 Source Document
1
Freddie Mac Loan Number
Note
2
Optigo Lender
Note
3
Address (Street)
Appraisal Report, Engineering Report, USPS
4
City
Appraisal Report, Engineering Report, USPS
5
County
Appraisal Report, Engineering Report, USPS
6
State
Appraisal Report, Engineering Report, USPS
7
Metropolitan Statistical Area
MSA File
8
Zip Code
Engineering Report, Appraisal Report, USPS
9
Property Type
Appraisal Report
10
Property Sub-Type
Appraisal Report
11
Cut-off Date
None - provided by Freddie Mac
12
Original Principal Balance
Note
13
Cut-off Balance
Refer to calculation procedures below
14
Maturity Balance
Refer to calculation procedures below
15
% of Cut-off Date Pool Balance
Refer to calculation procedures below
16
Note Date
Note

   Characteristic 
 Source Document
17
Note Rate
Note
18
Rate Type
Note
19
Interest Calculation
Note
20
Monthly Debt Service
Refer to calculation procedures below
21
Monthly Debt Service (IO)
Refer to calculation procedures below
22
First Payment Date
Note
23
Maturity Date
Note
24
Payment Date
Note
25
Late Charge Grace Period (# of days)
Note
26
Amortization Type
Note
27
Original Amortization Term (months)
Refer to calculation procedures below
28
Original Loan Term (months)
Refer to calculation procedures below
29
Remaining Amortization
Refer to calculation procedures below
30
Remaining Term
Refer to calculation procedures below
31
Seasoning as of Cut-off Date
Refer to calculation procedures below
32
Interest Only Term
Refer to calculation procedures below
33
Prepay Provision Description
Note, Loan Agreement
34
Defease To Maturity (Y/N)
Note, Loan Agreement
35
Partial Defeasance Permitted (Y/N)
Note, Loan Agreement
36
Appraised Value
Appraisal Report
37
Appraised Value Type
Appraisal Report
38
Appraisal Firm
Appraisal Report
39
Appraisal Date
Appraisal Report
40
Year Built
Engineering Report, Appraisal Report
41
Year Renovated
Engineering Report, Appraisal Report
42
Number of Units
Rent Roll, Appraisal Report
43
Affordable LI Units (<=80% AMI)
CRA Report
44
Affordable LI Units (<=60% AMI)
CRA Report
45
Affordable VLI Units (<=50% AMI)
CRA Report
46
Unit of Measure
Rent Roll, Appraisal Report
47
Cut-off Balance Per Unit
Refer to calculation procedures below
48
# Units - Commercial
Rent Roll, Appraisal Report
49
Elevator (Y/N)
Engineering Report
50
FIRREA Eligible (Y/N)
Appraisal Report
51
Zoning Status
Zoning Report, Appraisal Report
52
Lien Position
Title Policy
53
Fee Simple/Leasehold
Title Policy
54
Ground Lease Rent
Ground Lease
55
Ground Lease Expiration Date
Ground Lease
56
Ground Lease Expiration Date w/ Extensions
Ground Lease
57
LTV at Cutoff
Refer to calculation procedures below
58
LTV at Maturity
Refer to calculation procedures below
59
U/W EGI
Investment Brief, ASR


   Characteristic
 Source Document
60
U/W Expenses
Investment Brief, ASR
61
U/W NOI
Investment Brief, ASR
62
Underwritten Annual Reserves
Investment Brief, ASR
63
U/W NCF
Investment Brief, ASR
64
U/W DSCR (NCF)
Refer to calculation procedures below
65
U/W IO DSCR (NCF)
Refer to calculation procedures below
66
Most Recent Period Ending
Investment Brief, ASR
67
Most Recent EGI
Investment Brief, ASR
68
Most Recent Expenses
Investment Brief, ASR
69
Most Recent NOI
Investment Brief, ASR
70
Most Recent NCF
Investment Brief, ASR
71
Most Recent DSCR (NCF)
Refer to calculation procedures below
72
2nd Most Recent Period Ending
Investment Brief, ASR
73
2nd Most Recent EGI
Investment Brief, ASR
74
2nd Most Recent Expenses
Investment Brief, ASR
75
2nd Most Recent NOI
Investment Brief, ASR
76
2nd Most Recent NCF
Investment Brief, ASR
77
2nd Most Recent DSCR (NCF)
Refer to calculation procedures below
78
3rd Most Recent Period Ending
Investment Brief, ASR
79
3rd Most Recent EGI
Investment Brief, ASR
80
3rd Most Recent Expenses
Investment Brief, ASR
81
3rd Most Recent NOI
Investment Brief, ASR
82
3rd Most Recent NCF
Investment Brief, ASR
83
3rd Most Recent DSCR (NCF)
Refer to calculation procedures below
84
Occupancy Rate
Rent Roll/Appraisal Report
85
Occupancy as of Date
Rent Roll
86
Monthly Rent per Unit
Refer to calculation procedures below
87
Tenant Concentration Type
Property Inspection and Lease Audit
88
% of Tenant Concentration
Property Inspection and Lease Audit
89
Non-Compliance Provisions (Y/N)
Loan Agreement
90
Regulatory Agreement (Y/N)
Regulatory Agreement Summary
91
Type of Regulatory Agreement(s)
Regulatory Agreement Summary
92
Description of Regulatory Agreement(s)
Regulatory Agreement Summary
93
% Units with Income Restrictions
Regulatory Agreement Summary
94
% Units with Rent Restrictions
Regulatory Agreement Summary
95
Regulatory Agreement Expiration Date
Regulatory Agreement Summary
96
Condo Ownership (% or N/A)
Loan Agreement
97
Amount Sq. Ft - Commercial
Appraisal Report, Commercial Lease
98
% of GPR from Commercial Rental Income
Refer to calculation procedures below
99
Environmental Firm
Phase I Report
100
Phase I Environmental Report Date
Phase I Report
101
Phase II Recommended (Y/N)
Phase I Report
102
Phase II Performed (Y/N)
Phase II Report


   Characteristic  Source Document
103
Phase II Environmental Report Date
Phase II Report
104
Environmental Cost to Cure (Phase I plus Phase II)
Phase I Report, Phase II Report
105
Engineering Firm
Engineering Report
106
Engineering Report Date
Engineering Report
107
Immediate Repairs Cost Estimate
Engineering Report
108
Replacement Reserves Cost Estimate per Year
Engineering Report
109
Seismic Firm
Seismic Report
110
Seismic Report Date
Seismic Report
111
Earthquake Zone 3 or 4 or PGA ≥ 0.15g (Y/N)
Seismic Report, Engineering Report
112
PML Report Required (Y/N)
Engineering Report, Investment Brief
113
PML (%)
Seismic Report
114
Green Advantage
Loan Agreement, Green Assessment, Investment Brief
115
Tax Reserve - Current Balance ($ or N/A)
Servicing Report
116
Tax Reserve - Initial Deposit ($ or N/A)
Escrow Agreement, Servicing Report
117
Tax Reserve - Contractual Payment ($ or N/A)
Escrow Agreement, Servicing Report
118
Insurance Reserve - Current Balance ($ or N/A)
Servicing Report
119
Insurance Reserve - Initial Deposit ($ or N/A)
Escrow Agreement, Servicing Report, Closing Statement
120
Insurance Reserve - Contractual Payment
Escrow Agreement, Servicing Report
121
Engineering Reserve - Current Balance ($ or N/A)
Servicing Report
122
Engineering Reserve - Initial Deposit ($ or N/A)
Escrow Agreement, Servicing Report, Loan Agreement, Closing Statement
123
Engineering Reserve - Contractual Payment ($ or N/A)
Escrow Agreement, Servicing Report, Loan Agreement
124
Replacement Reserve - Current Balance ($ or N/A)
Servicing Report
125
Replacement Reserve - Initial Deposit ($ or N/A)
Escrow Agreement, Servicing Report, Loan Agreement, Closing Statement
126
Replacement Reserve - Contractual Payment ($ or N/A)
Escrow Agreement, Servicing Report, Loan Agreement
127
Replacement Reserve - Contractual - Cap ($ or N/A)
Escrow Agreement, Loan Agreement
128
Other Reserve - Current Balance ($ or N/A)
Servicing Report
129
Other Reserve - Initial Deposit ($ or N/A)
Escrow Agreement, Servicing Report, Loan Agreement, Closing Statement
130
Other Reserve Description
Escrow Agreement, Servicing Report, Loan Agreement
131
Other Reserve - Contractual Payment ($ or N/A)
Escrow Agreement, Servicing Report, Loan Agreement
132
Other Reserve - Contractual - Cap ($ or N/A)
Escrow Agreement, Loan Agreement
133
Springing Reserve Name
Loan Agreement, Escrow Agreement
134
Springing Reserve Amount ($ or N/A)
Loan Agreement, Escrow Agreement
135
Springing Reserve Description
Loan Agreement, Escrow Agreement
136
Letter of Credit Amount
Letter of Credit, Loan Agreement
137
Letter of Credit Description
Letter of Credit, Loan Agreement
138
Are Escrows/Reserves LOC or can be converted to LOC (Y/N)
Loan Agreement, Escrow Agreement
139
Specify Accounts for Escrows/Reserves LOC
Loan Agreement, Escrow Agreement
140
Environmental Insurance (Y/N)
Proof of Insurance

   Characteristic  Source Document
141
Flood Insurance (Y/N)
Proof of Insurance
142
Windstorm Insurance (Y or N)
Proof of Insurance
143
Earthquake Insurance In Place (Y/N)
Proof of Insurance
144
Terrorism Insurance (Y/N)
Proof of Insurance
145
Property Insurance Coverage (Y/N)
Proof of Insurance
146
Liability Insurance Coverage (Y/N)
Proof of Insurance
147
Cash Management (Description or N/A)
Cash Management Agreement
148
Lockbox (Y/N)
Cash Management Agreement
149
Existing Financing In Place (existing) (Y/N)
Secondary Financing Document, Loan Agreement
150
Existing Financing Amount (existing)
Secondary Financing Document, Loan Agreement
151
Existing Financing Description (existing)
Secondary Financing Document, Loan Agreement
152
CDCR (combined DCR)
Refer to calculation procedures below
153
CLTV (combined LTV)
Refer to calculation procedures below
154
Future Mezzanine Debt (Y/N)
Loan Agreement
155
Future Secondary Financing (Y/N)
Loan Agreement
156
Future Secondary Financing Description
Loan Agreement
157
Substitution Permitted (Y/N)
Loan Agreement, DOT
158
Number of Properties per Loan
Loan Agreement, Appraisal Report
159
Collateral Release Price ($ or N/A)
Loan Agreement, DOT
160
Crossed Loans
Loan Agreement, DOT
161
Release (Y or N or N/A)
Loan Agreement, Cross-Collateralization Agreement
162
Release Provisions (Description or N/A)
Loan Agreement, Cross-Collateralization Agreement
163
Loan Purpose
Loan Agreement, Closing Statement
164
Borrowing Entity
Note, Loan Agreement
165
Entity Type
Note, Loan Agreement
166
State of Organization
Note, Loan Agreement
167
Affiliated Borrowers Group Name
Guaranty
168
Borrower Type
Loan Agreement, DOT
169
Tenants In Common (Y/N)
Loan Agreement
170
Delaware Statutory Trust (Y/N)
Loan Agreement, DOT
171
Independent Director (Y/N)
Loan Agreement
172
Non-Consolidation Opinion (Y/N)
Non-Consolidation Opinion
173
Assumption Fee
Loan Agreement
174
Recourse(Y/N)
Note, Guaranty
175
Recourse Description
Note, Guaranty
176
Bad Boy Indemnitor / Guarantor
Guaranty
177
Environmental Indemnitor (Name or N/A)
Note, Guaranty, Loan Agreement
178
Environmental Carveout (Y/N)
Note, Guaranty, Loan Agreement
179
Fraud Carveout (Y/N)
Note, Guaranty
180
Misapplication of Rent and Insurance Proceeds Carveout (Y/N)
Note, Guaranty
181
Voluntary Bankruptcy Carveout (Y/N)
Note, Guaranty


   Characteristic  Source Document
182
Waste Carveout (Y/N)
Note, Guaranty
183
Borrower Or Principal Prior Bankruptcy (Y/N)
Form 1115
184
Management Company
Management Agreement
185
Primary Servicing Fee
Commitment
186
Master Servicing Fee
None - provided by Freddie Mac
187
Trustee Fee
Trustee Bid
188
Master Servicing Surveillance Fee
None - provided by Freddie Mac
189
Special Servicing Surveillance Fee
None - provided by Freddie Mac
190
CREFC® Royalty Fee
None - provided by Freddie Mac
191
Administration Fee
Refer to calculation procedures below
192
Net Mortgage Rate
Refer to calculation procedures below


With respect to Characteristic 13, assuming, at your request, no prepayments of principal, we recomputed the Cut-off Balance using the First Payment Date, the Original Principal Balance, the Interest Calculation Method, the Monthly Debt Service, the Note Rate, the Interest Only Term and the Cut-off Date. At the request of representatives of Freddie Mac, Cut-off Balance differences of one dollar or less were deemed to be “in agreement” for purposes of this report.

With respect to Characteristic 14, assuming, at your request, no prepayments of principal, we recomputed the Maturity Balance using the First Payment Date, the Monthly Debt Service, the Original Principal Balance, the Interest Calculation Method, the Note Rate, the Interest Only Term and the Maturity Date. At the request of representatives of Freddie Mac, Maturity Balance differences of one dollar or less were deemed to be “in agreement” for purposes of this report.

With respect to Characteristic 15, we recomputed the % of Cut-off Date Pool Balance by dividing the (i) Cut-off Balance by (ii) sum of each of the Mortgage Assets’ Cut-off Balance.

With respect to Characteristic 20, (i) for those Mortgage Assets with an Amortization Type of “Interest Only,” if any, we compared the Monthly Debt Service to the Monthly Debt Service (IO) and (ii) for those Mortgage Assets with an Amortization Type of “Partial IO” or “Balloon,” if any, we compared the Monthly Debt Service to the corresponding information set forth on the Note.

With respect to Characteristic 21, we recomputed the Monthly Debt Service (IO) as one twelfth of the product of (i) the Original Principal Balance, (ii) the Note Rate and (iii) a fraction equal to 365/360.  This procedure was not performed for those Mortgage Assets with an Amortization Type of “Balloon,” if any.

With respect to Characteristic 27, we recomputed the Original Amortization Term (months) by using the Original Principal Balance, the Monthly Debt Service and the Note Rate and a 30/360 Interest Calculation Method.  This procedure was not performed for those Mortgage Assets with an Amortization Type of “Interest Only.”

With respect to Characteristic 28, we recomputed the Original Loan Term (months) by determining the number of payment dates from and inclusive of the First Payment Date to and inclusive of the Maturity Date.

With respect to Characteristic 29, we recomputed the Remaining Amortization by subtracting the (i) Seasoning as of Cut-off Date from (ii) Original Amortization Term (months).  With respect to those Mortgage Assets with an Amortization Type of “Partial IO,” for purposes of the procedure indicated herein, the Seasoning as of Cut-off Date is reduced by (but to a result not less than zero) the Interest Only Term.  This procedure was not performed for those Mortgage Assets with an Amortization Type of “Interest Only,” if any.

With respect to Characteristic 30, we recomputed the Remaining Term by subtracting the (i) Seasoning as of Cut-off Date from (ii) Original Loan Term (months).

With respect to Characteristic 31, we recomputed the Seasoning as of Cut-off Date by determining the number of payment dates from and inclusive of the First Payment Date to and inclusive of the Cut-off Date.

With respect to Characteristic 32, (i) for those Mortgage Assets with an Amortization Type of “Partial IO,” we recomputed the Interest Only Term by determining the number of payment dates from and inclusive of the First Payment Date to and exclusive of the first principal and interest installment due date (as set forth on the Note) and (ii) for those Mortgage Assets with an Amortization Type of “Interest Only,” if any, we compared the Interest Only Term to the Original Loan Term (months).  This procedure was not performed for those Mortgage Assets with an Amortization Type of “Balloon,” if any.

With respect to Characteristic 47, we recomputed the Cut-off Balance Per Unit by dividing the (i) Cut-off Balance by (ii) Number of Units. With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this procedure was performed with the aggregate Cut-off Balance and the aggregate Number of Units of the related cross collateralized Mortgage Assets.

With respect to Characteristic 57, we recomputed the LTV at Cutoff by dividing the (i) Cut-off Balance by (ii) Appraised Value.  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by the respective Cut-off Balance.

With respect to Characteristic 58, we recomputed the LTV at Maturity by dividing the (i) Maturity Balance by (ii) Appraised Value.  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by the respective Cut-off Balance.

With respect to Characteristic 64, we recomputed the U/W DSCR (NCF) by dividing the (i) U/W NCF by (ii) annualized Monthly Debt Service.  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by the respective Cut-off Balance.

With respect to Characteristic 65, we recomputed the U/W IO DSCR (NCF) by dividing the (i) U/W NCF by (ii) annualized Monthly Debt Service (IO).  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was

calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by the respective Cut-off Balance.  This procedure was not performed for those Mortgage Assets with an Amortization Type of “Balloon,” if any.

With respect to Characteristic 71, we recomputed the Most Recent DSCR (NCF) by dividing the (i) Most Recent NCF by (ii) annualized Monthly Debt Service.  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by the respective Cut-off Balance.  This procedure was not performed for those Mortgage Assets with a Most Recent NCF of “N/A.”

With respect to Characteristic 77, we recomputed the 2nd Most Recent DSCR (NCF) by dividing the (i) 2nd Most Recent NCF by (ii) annualized Monthly Debt Service.  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by the respective Cut-off Balance.  This procedure was not performed for those Mortgage Assets with a 2nd Most Recent NCF of “N/A.”

With respect to Characteristic 83, we recomputed the 3rd Most Recent DSCR (NCF) by dividing the (i) 3rd Most Recent NCF by (ii) annualized Monthly Debt Service.  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by their respective Cut-off Balance.  This procedure was not performed for those Mortgage Assets with a 3rd Most Recent NCF of “N/A.”

With respect to Characteristic 86, we recomputed the Monthly Rent per Unit by dividing the (i) aggregate gross potential rent (as set forth on or derived from the Rent Roll) by (ii) Number of Units.  At the request of representatives of Freddie Mac, Monthly Rent per Unit differences of five dollars or less were deemed to be “in agreement” for purposes of this report.

With respect to Characteristic 98, we recomputed the % of GPR from Commercial Rental Income by dividing the (i) Freddie Mac proforma commercial income (as set forth on the Investment Brief or ASR) by (ii) sum of the (a) Freddie Mac proforma commercial income (as set forth on the Investment Brief or ASR) and (b) Freddie Mac proforma gross potential rent - residential (as set forth on the Investment Brief or ASR).  This procedure was not performed for those Mortgage Assets with an Amount Sq. Ft – Commercial of “N/A.”

With respect to Characteristic 152, we recomputed the CDCR (combined DCR) by dividing the (i) U/W NCF by (ii) sum of the (a) annualized Monthly Debt Service and (b) annualized existing financing monthly debt service (as set forth on the Secondary Financing Document).  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by the respective Cut-off Balance.  This procedure was not performed for those Mortgage Assets with an Existing Financing Amount of “N/A” or with existing financing where regular scheduled payments are

only repaid from excess or residual cash flow (as set forth on the Secondary Financing Document).

With respect to Characteristic 153, we recomputed the CLTV (combined LTV) by dividing the (i) sum of the (a) Cut-off Balance and (b) aggregate Existing Financing Amount by (ii) Appraised Value.  With respect to a cross collateralized Mortgage Asset, if any (as set forth on the Loan Agreement or DOT), this characteristic was calculated as the weighted average quotient referred to in the previous sentence, for each related Mortgage Asset in such crossed loan group, weighted by the respective Cut-off Balance.  This procedure was not performed for those Mortgage Assets with an Existing Financing Amount of “N/A” or with existing financing where regular scheduled payments are only repaid from excess or residual cash flow (as set forth on the Secondary Financing Document).

With respect to Characteristic 191, we recomputed the Administration Fee as the sum of the (i) Primary Servicing Fee, (ii) Master Servicing Fee, (iii) Trustee Fee, (iv) Master Servicing Surveillance Fee, (v) Special Servicing Surveillance Fee and (vi) CREFC® Royalty Fee.

With respect to Characteristic 192, we recomputed the Net Mortgage Rate by subtracting the (i) Administration Fee from (ii) Note Rate.