- obtain signed financial statements from all parties relevant to the 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. ; and
- ensure all:
- Potential Red Flags for Mortgage Fraud and Other Suspicious Activity were considered; and
- unresolved red flags were reported per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 308: Compliance.
|If the financial statements…||Then…|
|Are dated less than 12 months before the Commitment Date||You do not need a signed "no material adverse change" certification.|
|Are dated 12 – 24 months before the Commitment Date||You must include a signed certification dated within 30 days before loan application that states they have experienced no material adverse change to their financial condition.|
|Are dated more than 24 months old||You cannot use them.|
For all financial statements, you must collect:
- A schedule of real estate owned by the party providing the financial statement, including the loan information (such as lender, DSCRDSCROn an annual basis or any specified period, the ratio of Net Cash Flow to the total of: principal, interest, and required Mezzanine Financing or Hard Preferred Equity payments. , and maturity date) for all assets on the schedule.
- A listing of all other assets, including
- notes receivable from related entities, and
- an estimate of the market value of each asset and the basis for calculating value estimates.
- All liabilities and contingent liabilities, including
- debts under lines or letters of credit,
- personal guaranties,
- unmet obligations to partnerships or other entities, and
- other future obligations (describe the amount and timing of these).
- Any other factors that may impact the party’s financial position immediately or during the term of the 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. (including any known threat of potential lawsuits that may arise from the parties’ business operations).