Underwriting

Requirements

You must ensure that no Lender LenderPerson 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 Borrower BorrowerPerson 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 Borrower BorrowerPerson who is the obligor per the Note. owned by any Lender Senior Executive Lender 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 Lender LenderPerson 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 Executive Lender 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 Lender LenderPerson 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 Loan Mortgage 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 Borrower BorrowerPerson who is the obligor per the Note. ?
  • Can any Lender Senior Executive Lender 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 Lender LenderPerson 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 Loan Mortgage 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 Borrower BorrowerPerson who is the obligor per the Note. ?

In addition, your underwriting submission must include:

• copies of the Borrower's Borrower'sPerson who is the obligor per the Note. organizational documents and financial statements;
• copies of all organizational documents and financial statements for any Lender Affiliate Lender 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 Borrower BorrowerPerson who is the obligor per the Note. ; and
• an organizational chart or diagram showing the:
  • Borrower's Borrower'sPerson who is the obligor per the Note. complete ownership structure;
  • relationship among the Lender LenderPerson Fannie Mae approved to sell or service Mortgage Loans. , Borrower BorrowerPerson who is the obligor per the Note. , and applicable Lender Affiliate Lender AffiliateOther Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. ; and
  • percentage ownership of each entity.