Section 308

Compliance

Requirements

You must confirm that the BorrowerBorrowerPerson who is the obligor per the Note. , Key PrincipalKey PrincipalAny Person 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 who may be required to provide a Guaranty. , GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and 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. :

  • Are not sanctioned or blocked by OFACOFACU.S. Treasury Department, Office of Foreign Assets Control. . 
  • Do not exhibit “red flags” that indicate a high risk of money laundering. 
  • Are not on the
    • FHFA SCP ListSCP ListFHFA’s Suspended Counterparty Program list located at https://www.fhfa.gov. ,
    • HUDHUDU.S. Department of Housing and Urban Development "Limited Denial of Participation, Funding Disqualifications and Voluntary Abstentions List," or
    • GSA "System for Award Management (SAM)" Exclusion List.

Fannie Mae will not purchase any 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. with a BorrowerBorrowerPerson who is the obligor per the Note. , Key PrincipalKey PrincipalAny Person 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 who 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. that:

  • is sanctioned or blocked by OFACOFACU.S. Treasury Department, Office of Foreign Assets Control. ;
  • exhibits "red flags" that indicate a high risk of money laundering; or
  • is on the
    • FHFA SCP ListSCP ListFHFA’s Suspended Counterparty Program list located at https://www.fhfa.gov. ,
    • HUDHUDU.S. Department of Housing and Urban Development "Limited Denial of Participation, Funding Disqualifications and Voluntary Abstentions List," or
    • GSA "System for Award Management (SAM)" Exclusion List.

Operating Procedures

If you find a “red flag” for money laundering:

  1. Do not inform the BorrowerBorrowerPerson who is the obligor per the Note. , any BorrowerBorrowerPerson who is the obligor per the Note. AffiliateAffiliateWhen referring to an affiliate of a Lender, any other Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. When referring to an affiliate of a Borrower or Key Principal: any Person that owns any direct ownership interest in Borrower or Key…, Key PrincipalKey PrincipalAny Person 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 who 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. .
  2. Report all information that triggered the “red flag” to Fannie Mae to:
  3. Obtain Fannie Mae’s written approval to DeliverDeliverSubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. 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. .
  4. Do not provide any information to Fannie Mae that would indicate whether you have filed a Suspicious Activity ReportSuspicious Activity ReportReport made by a financial institution to the Financial Crimes Enforcement Network (FinCEN), regarding suspicious or potentially suspicious activity. (SAR) with the Financial Crimes Enforcement Network (FinCEN).