Chapter 15
| Section 1501 | |
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Requirements
A Split Mortgage Loan consists of 2 Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. , a Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. and a Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. , that are underwritten concurrently. A Split Mortgage Loan allows the BorrowerBorrowerPerson who is the obligor per the Note. to divide the debt or increase the leverage on a property.
A Bifurcated Mortgage LoanBifurcated Mortgage LoanSingle Senior Mortgage Loan that is evidenced by 2 Notes with the same payment and collateral priority. is a single Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. that is evidenced by 2 NotesNotesInstrument evidencing a Mortgage Loan obligation, including Form 6010 series, any other Fannie Mae-approved note, and all applicable addenda, schedules, and exhibits. with the same payment and collateral priority. A Bifurcated Mortgage LoanBifurcated Mortgage LoanSingle Senior Mortgage Loan that is evidenced by 2 Notes with the same payment and collateral priority. allows the BorrowerBorrowerPerson who is the obligor per the Note. to deleverage a portion of the debt.
Split Mortgage Loans and Bifurcated Mortgage LoansBifurcated Mortgage LoansSingle Senior Mortgage Loan that is evidenced by 2 Notes with the same payment and collateral priority. are sometimes referred to as A/B Structures. Split Mortgage Loans and Bifurcated Mortgage LoansBifurcated Mortgage LoansSingle Senior Mortgage Loan that is evidenced by 2 Notes with the same payment and collateral priority. are not the same as the Dual Commitment OptionDual Commitment OptionFor a Streamlined Rate Lock Mortgage Loan trade with the Multifamily Trading Desk, your ability to increase the Mortgage Loan Rate Lock amount. described in Part IV, Chapter 3: Streamlined Rate Lock, Section 307: Dual Commitment Option.
| Section 1502 | |
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Requirements
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Topic |
Split Mortgage Loans |
Bifurcated Mortgage Loans |
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Closing |
Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. closing must occur on, or within 12 months after, the Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. closing. |
Must occur on the same date. |
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Loan Amount |
Aggregate original principal amounts of the Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. and the Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. . |
Aggregate original principal amounts of the 2 NotesNotesInstrument evidencing a Mortgage Loan obligation, including Form 6010 series, any other Fannie Mae-approved note, and all applicable addenda, schedules, and exhibits. .
If any proceeds are based on an IRPIRPInterest Reduction Payment , Part III, Chapter 7: Multifamily Affordable Housing Properties applies. |
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Purpose |
Either acquisition or refinancing. |
Either acquisition or refinancing. |
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Underwriting |
The 2 Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. must:
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Must not have a combined:
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Interest Rate Structures |
Either a fixed or variable interest rate.
If you use a combination of fixed and variable interest rates, you must comply with Part III, Chapter 14: Supplemental Mortgage Loans. |
Either a fixed or variable interest rate.
If you use a combination of fixed and variable interest rates, each NoteNoteInstrument evidencing a Mortgage Loan obligation, including Form 6010 series, any other Fannie Mae-approved note, and all applicable addenda, schedules, and exhibits. must have its own MBSMBSMortgage-Backed Security . |
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Documentation |
2 separate sets of Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. : 1 for the Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. and 1 for the Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. . |
1 set of Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , but evidenced by 2 separate NotesNotesInstrument evidencing a Mortgage Loan obligation, including Form 6010 series, any other Fannie Mae-approved note, and all applicable addenda, schedules, and exhibits. .
The NotesNotesInstrument evidencing a Mortgage Loan obligation, including Form 6010 series, any other Fannie Mae-approved note, and all applicable addenda, schedules, and exhibits. must be pari passu. |
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Securitization |
2 separate MBSMBSMortgage-Backed Security : 1 for the Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. and 1 for the Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. .
Additional DisclosureAdditional DisclosureInformation you provide that is published as an addendum to the disclosure documents when an MBS is issued and describes special Security, Mortgage Loan, or Property characteristics or terms that differ from those described in the standard Multifamily MBS Prospectus. per Form 4098 will be required if a partial release of collateral is permitted for either Mortgage LoanMortgage LoanMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. . |
1 MBSMBSMortgage-Backed Security unless multiple Interest Rate Structures.
Additional DisclosureAdditional DisclosureInformation you provide that is published as an addendum to the disclosure documents when an MBS is issued and describes special Security, Mortgage Loan, or Property characteristics or terms that differ from those described in the standard Multifamily MBS Prospectus. per Form 4098 must be required if a partial release of collateral is permitted for either NoteNoteInstrument evidencing a Mortgage Loan obligation, including Form 6010 series, any other Fannie Mae-approved note, and all applicable addenda, schedules, and exhibits. . |
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Hazard Insurance |
Coverage based on the combined UPBUPBUnpaid Principal Balance of the Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. and the Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. . |
Consistent with Senior Mortgage LoansSenior Mortgage LoansSenior loan purchased by Fannie Mae. . |
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Title Insurance |
Separate title insurance policies for the Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. and Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. , in the respective amounts of each loan. |
Consistent with Senior Mortgage LoansSenior Mortgage LoansSenior loan purchased by Fannie Mae. . |
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UCC Financing Statements |
Filings for both the Senior Mortgage LoanSenior Mortgage LoanSenior loan purchased by Fannie Mae. and Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. . |
Consistent with Senior Mortgage LoansSenior Mortgage LoansSenior loan purchased by Fannie Mae. . |
Guidance
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Topic |
Split Mortgage Loans |
Bifurcated Mortgage Loans |
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Maturity Date |
2 Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or a mortgage debt obligation with a Fannie Mae credit enhancement. may have different Maturity DatesMaturity DatesDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. if the Subordinate LoanSubordinate LoanMultifamily residential real estate loan secured by a Lien against the Property having a lesser priority than the Lien securing another multifamily residential real estate loan on the same Property. is resubordinated per Part III, Chapter 14: Supplemental Mortgage Loans. |
2 NotesNotesInstrument evidencing a Mortgage Loan obligation, including Form 6010 series, any other Fannie Mae-approved note, and all applicable addenda, schedules, and exhibits. may have different Maturity DatesMaturity DatesDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. and Yield Maintenance Period End DatesYield Maintenance Period End DatesLast day on which a Borrower owes yield maintenance for a voluntary Mortgage Loan prepayment. . |