In 2017 we took a hard look at our business and requested honest feedback from you to determine where the biggest pain points are in doing business together. One of the items at the top of that list was our loan documents. As a result, we set out to overhaul and simplify our entire suite of Seniors Housing loan documents. We enlisted the help of many of your peers and experienced attorneys in the industry to accomplish this task. After countless hours of reviewing common loan document modifications, reassessing the Subordination, Assignment and Security Agreement (SASA), and streamlining the required checklists, we are very excited to debut the Alternate Seniors Housing Loan Documents!
The Alternate Seniors Housing Loan Documents have been released as official unpublished loan documents and are available for you to test immediately for all new Seniors Housing transactions. These documents are alternates and not required to be used as the old documents and forms are still posted on FannieMae.com and available for use. Please contact your Deal Team to obtain copies of the new documents, as well as instructions on how to modify existing, published loan documents to incorporate into the new set. We would appreciate your feedback when using the alternate documents, and please remember to contact your Deal Team to obtain the most current drafts for your transaction; we intend to update the new documents on a rolling basis in response to your feedback.
Highlights of the changes made are below, but we highly encourage you, and all who work on Seniors Housing deals, to join our webinar on Monday, May 21 at 2:30 - 3:30 p.m. EST (invitation to follow). We hope that you can join us, so that we can equip you and your team with information to explain these changes to Borrowers and highlight the benefits of the new documents. On the call, you can expect the Seniors Housing deal team and Seniors Housing Legal subject matter experts to address questions that you may have.
Join the webinar to find out about additional changes -- mark your calendars now!
Green + Seniors = Impact
We are hard at work developing innovative approaches to provide better Seniors Housing financing solutions. We have partnered with Fannie Mae's Green Financing team to offer Seniors Housing Green Mortgage Loans. Our Green Rewards execution allows your Borrowers up to 5% in additional loan proceeds and highly competitive pricing. Fannie Mae also pays for the energy and water audit report as long as the Borrower elects the Green Rewards execution. Since most utilities are included in the rent for Seniors Housing properties, the energy and water cost savings have a direct impact on lowering costs and fostering more sustainable communities. Not only do Green Mortgage Loans have a positive environmental impact, they also help boost your Borrower's returns.
We also can structure Green Mortgage Loans with our Credit Facility product. For example, we just closed an 11-property Credit Facility where all the assets qualified for Green Rewards. As a result, the owner was able to take advantage of additional pricing discounts, and we were able to underwrite some of the projected cost savings to achieve higher loan proceeds. The transaction was completed within 90 days of application to meet the Borrower's closing timeline.
Together, we will continue to help owners and operators of Seniors Housing properties realize the full financial and environmental potential of their properties and the potential savings that can be passed on to the residents. We look forward to working with you on your next Seniors Housing Green Mortgage Loan.