MBA Releases Mold White Paper

June 7, 2005

WASHINGTON, D.C. - The Mortgage Bankers Association (MBA) released a Mold White Paper to the public - Mold: Steps Toward Clarity. This document was written by the MBA Commercial Real Estate/Multifamily Finance Board of Governors (COMBOG) Loan Origination Committee's Mold Working Group. The Commercial/Multifamily Mold Working Group is made up of MBA members who are industry experts in commercial real estate finance, property inspections and insurance. The purpose of this White Paper is to provide an educational resource on mold and damp indoor commercial spaces. The paper examines how knowledge in this area has evolved and what may be done now to effectively mitigate mold and dampness issues.

"In an attempt to eliminate the 'mis-information' that exists with regard to the mold issue, this authoritative reference piece was crafted," explains Don Glitz, vice president, Corporate Risk Manager of GMAC Commercial Holding Corporation and chair of MBA's Commercial/Multifamily Mold Working Group. "It is an all-inclusive guidance document that serves to clarify all facets of the mold issue, so that our industry can make informed decisions based on individual situations, business models and transaction requirements."

The Commercial/Multifamily Mold Working Group took careful steps to fully research, draft and finalize this paper. To that end, the paper was open for a 45 day comment period at which time, key industry experts were asked by the working group to thoroughly review, question and comment on the paper before releasing the final version to the public. The working group went to great lengths to provide a comprehensive document that will serve as a guide and reference tool on this important issue. For commercial lenders and servicers alike, there is no single set of "best practices" in recognizing and coping with mold issues, but awareness of mold and its effects is the first of a series of "smart practices" the industry can embrace.

Because of the rapidity with which this issue is evolving, the Commercial/Multifamily Mold Working Group anticipates the issuance of periodic supplements to this document as significant developments occur.

Source: MBA

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