Lender PML/SEL vs City Compliance
Last updated: August 27, 2026
Why are they separate requirements?
The lender PML/SEL answers the mortgage question: is the building adequate collateral for earthquake risk per Freddie Mac Chapter 64? The city package answers the ordinance question: did the owner complete the required seismic retrofit per Ordinance 183893? Different recipients, different purposes, different standards.
| Document type | Recipient | Purpose | Satisfies LADBS Order? |
|---|---|---|---|
| Lender PML/SEL (Probable Maximum Loss / Scenario Expected Loss) | Lender or servicer | Freddie Mac real estate appraisal for earthquake collateral risk | No |
| County Recorder certificate (§91.9306.6) | LADBS | Department-filed official close-out per Ordinance 183893 | Yes |
| Statement on approved plans (§91.9310.2) | LADBS via design professional | Design professional close-out statement | Yes |
What does the city require?
Per Ordinance 183893, the Department files a County Recorder certificate (§91.9306.6) and the design professional (a California civil or structural engineer or architect per §91.9305.1) puts a statement on the approved plans (§91.9310.2) to dismiss the Order. The lender's PML/SEL appraisal is not part of this process.
| Document | Preparer | Required for Order dismissal? |
|---|---|---|
| County Recorder certificate (§91.9306.6) | Department | Yes |
| Statement on approved plans (§91.9310.2) | Design professional (California civil or structural engineer or architect per §91.9305.1) | Yes |
| Lender PML/SEL appraisal | Lender's engineer | No |
Frequently asked questions
Does a lender PML/SEL satisfy LADBS city compliance requirements?
No. A lender PML (Probable Maximum Loss) or SEL (Scenario Expected Loss) is a Freddie Mac multifamily real estate appraisal per ASTM E2026 for earthquake collateral risk. Per Ordinance 183893, the Department files a County Recorder certificate (§91.9306.6) and the design professional (a California civil or structural engineer or architect per §91.9305.1) puts a statement on the approved plans (§91.9310.2) to dismiss the Order.
Can the same engineer prepare both the PML/SEL and city compliance documentation?
Yes, if separately engaged. A California licensed civil or structural engineer or architect may prepare the lender's PML/SEL appraisal and also serve as design professional of record for the LADBS permit. Each has distinct scope, recipients, and requirements.