310.02
| 310.02A | |
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Requirements
You must ensure that no LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee or other person involved in Conflict Mortgage Loan underwriting and approval owns any direct or indirect equity interest in the BorrowerBorrowerPerson who is the obligor per the Note. .
You must include the following in your Transaction Approval Memo:
- the amount of any direct or indirect equity interest in the BorrowerBorrowerPerson who is the obligor per the Note. owned by any Lender Senior ExecutiveLender Senior ExecutiveFor any Lender any: a. senior executive officer serving as its president, chief executive officer, chief financial officer, chief operating officer, chief production officer, chief underwriter, chief asset manager, chief legal officer, chief information security officer, chief compliance…, other LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee or group of employees; and
- answers to the following questions, including an explanation if your answer to a question is yes:
- Does any Lender Senior ExecutiveLender Senior ExecutiveFor any Lender any: a. senior executive officer serving as its president, chief executive officer, chief financial officer, chief operating officer, chief production officer, chief underwriter, chief asset manager, chief legal officer, chief information security officer, chief compliance…, other LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee or group of employees, or any person who participated in the underwriting or approval 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. , own any direct or indirect equity interest in the BorrowerBorrowerPerson who is the obligor per the Note. ?
- Can any Lender Senior ExecutiveLender Senior ExecutiveFor any Lender any: a. senior executive officer serving as its president, chief executive officer, chief financial officer, chief operating officer, chief production officer, chief underwriter, chief asset manager, chief legal officer, chief information security officer, chief compliance…, other LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee or group of employees, or any person who participated in the underwriting or approval 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. , require changes to the management, operations, or decision-making of the BorrowerBorrowerPerson who is the obligor per the Note. ?
In addition, your underwriting submission must include:
- copies of the Borrower'sBorrower'sPerson who is the obligor per the Note. organizational documents and financial statements;
- copies of all organizational documents and financial statements for any Lender AffiliateLender AffiliateOther Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. that holds a direct or indirect equity ownership interest in the BorrowerBorrowerPerson who is the obligor per the Note. ; and
- an organizational chart or diagram showing
- the complete ownership structure of the BorrowerBorrowerPerson who is the obligor per the Note. ,
- the relationship among the LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. , BorrowerBorrowerPerson who is the obligor per the Note. , and applicable Lender AffiliateLender AffiliateOther Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. , and
- the percentage ownership of each entity.
You must designate 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. as a Conflict Mortgage Loan in C&DC&DElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system. .
| 310.02B | |
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Requirements
As ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. of a Controlling Conflict Mortgage Loan, you must not
- participate in loss mitigation or special asset management decisions if it becomes a Non-Performing Mortgage LoanNon-Performing Mortgage LoanMortgage Loan with an uncured default. , or
- be notified of, or participate in, any negotiations or communications between Fannie Mae and 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. , 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. (or any 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… of any of them).
Fannie Mae will make reasonable efforts to provide copies of written communications between Fannie Mae and other parties.
These servicing restrictions apply as long as 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. is considered a Controlling Conflict Mortgage Loan.
- Fannie Mae has sole discretion to decide what action, if any, to take regarding any Controlling Conflict Mortgage Loan, any PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). securing a Controlling Conflict Mortgage Loan, or any BorrowerBorrowerPerson who is the obligor per the Note. or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
- If Fannie Mae decides that a Controlling Conflict Mortgage Loan has a material risk of default or other characteristics of increased risk, it can
- designate a substitute servicer or subservicer, or
- terminate (with or without cause) your right to service 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. .
- Fannie Mae will comply with the Program Rules Part 3 Sections B and C relating to Fannie Mae initiated servicing transfers. After servicing is transferred, you will retain your loss sharing obligation.
| 310.02C | |
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Requirements
You will not have any First Right of Refusal to purchase a PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). that secured a Conflict Mortgage Loan, even if the Loss Sharing Addendum to the MSSAMSSAProgram Documents per the Multifamily Selling and Servicing Agreement. grants you this right.
| 310.02D | |
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For an MBSMBSMortgage-Backed Security backed by a Conflict Mortgage Loan, you must indicate in C&DC&DElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system.
- that additional disclosure is required, and
- whether it is the LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. , a Lender AffiliateLender AffiliateOther Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. , a Lender Senior ExecutiveLender Senior ExecutiveFor any Lender any: a. senior executive officer serving as its president, chief executive officer, chief financial officer, chief operating officer, chief production officer, chief underwriter, chief asset manager, chief legal officer, chief information security officer, chief compliance…, a LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee, or group of employees who has a Controlling InterestControlling InterestFor any entity, ownership or control of 50% or more of the ownership interests in the entity or the power or right to control or modify, directly or indirectly, the management and operations of the entity. or a non-Controlling InterestControlling InterestFor any entity, ownership or control of 50% or more of the ownership interests in the entity or the power or right to control or modify, directly or indirectly, the management and operations of the entity. .
| 310.02E | |
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Requirements
If, after delivering a 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. , it becomes a Conflict Mortgage Loan, you must deliver all materials described in this Section to Multifamily Asset ManagementMultifamily Asset ManagementTeam that can be contacted at [email protected]. within 30 days after acquiring each equity interest.