Section 307

Applicant Experience Check

Requirements

For both initial applications, Supplemental Mortgage LoansSupplemental Mortgage LoansMortgage Loan purchased by Fannie Mae that is subordinated to, and has a Mortgage Loan Origination Date after, the Senior Mortgage Loan that is also owned by Fannie Mae. , and any Transfer/AssumptionTransfer/AssumptionTransaction changing the ownership of the Borrower or Property. , you must perform an ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. TM and receive a "Continue Processing" response for

  • the BorrowerBorrowerPerson who is the obligor per the Note. ,
  • each Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. of the BorrowerBorrowerPerson who is the obligor per the Note. ,
  • each PrincipalPrincipalPerson who owns or controls specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals, and Guarantors. of the BorrowerBorrowerPerson who is the obligor per the Note. ,
  • each GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and
  • any person who owns or controls an entity Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. .

Operating Procedures

Where can you find ACheck?

You can find the ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. application at https://multifamily.fanniemae.com/applications-technology/acheck.

When do you use the ACheck application?

As soon as you receive an application request and the necessary tax identification numbers and/or social security numbers, enter the information into ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. .

  • If you have not yet identified all parties at this stage, you must enter all Key PrincipalsKey PrincipalsPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , PrincipalsPrincipalsPerson who owns or controls specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals, and Guarantors. , and GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. of the BorrowerBorrowerPerson who is the obligor per the Note. into ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. as soon as you identify them.
  • If more than 90 days pass between the initial ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. and Commitment DateCommitment DateDate a Commitment is confirmed by Fannie Mae per Part IV, Chapter 2: Rate Lock and Committing, Section 204: Commitments. , you must repeat an ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. .

How do you view ACheck results?

The ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. application will provide either a “Continue Processing” or “Do Not Process” electronic response instantaneously.

  • “Continue Processing” Response

You must receive a “Continue Processing” response in order to proceed with the application.

This does not mean that the BorrowerBorrowerPerson who is the obligor per the Note. , Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , PrincipalPrincipalPerson who owns or controls specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals, and Guarantors. , GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , or PrincipalPrincipalPerson who owns or controls specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals, and Guarantors.  is approved; you are still required to complete full 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. credit underwriting.

  • “Do Not Process” Response

If you receive a response stating “do not continue processing an application for a Fannie Mae loan that involves this applicant” (or similar wording), then:

  • Do not proceed with the application by omitting any Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , PrincipalPrincipalPerson who owns or controls specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals, and Guarantors. , or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. for which a “Do Not Process” response was given.
  • Use the “Do Not Process” response to indicate that you need to have direct communication with Fannie Mae.
  • Follow the instructions provided by the ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. application and contact Fannie Mae before proceeding to underwrite 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. .
  • Never use the “Do Not Process” response as the sole reason for rejecting or denying credit in any cases not involving Fannie Mae.

You will not be provided any information as to why a particular BorrowerBorrowerPerson who is the obligor per the Note. , Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , PrincipalPrincipalPerson who owns or controls specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals, and Guarantors. , or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. received a “Do Not Process” response.

What about confidentiality?

You must establish procedures to ensure that all ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheck application. responses obtained for BorrowersBorrowersPerson who is the obligor per the Note. , Key PrincipalsKey PrincipalsPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , PrincipalsPrincipalsPerson who owns or controls specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals, and Guarantors. , and GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. are kept confidential.