Effective for all commitments submitted on or after September 3, 2019, Fannie Mae is updating its Multifamily Additional Disclosure Guidance (Form 4098) to reflect
If a Mortgage Loan has non-standard characteristics
- it may require additions to the MBS Prospectus and/or accompanying Annex A, and
- you must check the Additional Disclosure Indicator and add Additional Disclosure Comments in the Commitment and Delivery (C&D) system.
This update includes:
- New non-standard Mortgage Loan characteristics:
- Participation Interests - Applies to any pool that holds less than 100% participation interest in a Mortgage Loan.
- Scattered Sites - Applies to Properties with multiple non-contiguous sites with separate parcels that are managed and operated as one property.
- LIHTC Investment - Applies if Fannie Mae is a LIHTC investor.
- Multiple Series Limited Liability Company - Applies if the Borrower is formed under a series LLC statute.
- Updated non-standard Mortgage Loan characteristics:
- Cross-Defaulted/Cross-Collateralized – Any cross defaulted and/or cross collateralized mortgage loan that allows the release of the crossed property or has a due on sale clause requires Additional Disclosure (see Job Aid: Data Guidance for Cross-Defaulted and Cross-Collateralized Mortgage Loans for details).
- Changed Other Prepayment Premium to Declining Prepayment Premium, Other Year Schedule and Other Prepayment Premium – If Declining Prepayment Premium schedules are not available as allowable values in C&D, use Declining Prepayment, Other Year Schedule.
- Updated language for
- Mezzanine Financing or Preferred Equity,
- Senior Third Party Debt,
- Condominium Project,
- Future Release, Condemnation, or Property Not Security,
- Property Valuation,
- Conflict Mortgage Loans (i.e., Lender’s Equity Interest),
- Non-Standard Events or Default and/or Personal Recourse Triggers,
- Revenue and Expenses (e.g., Tax Abatements), and
- Properties with Multiple Addresses.
- Removed Hybrid ARM Systems Additional Disclosure characteristic.
Superseded Lender Letter
This publication supersedes Lender Letter 17-17.
Please contact Patty Lafean at (202) 752-6240 or [email protected] with any questions.