Chapter 6

Structured Transactions

Section 601

Registration

Requirements

Using your Negotiated Seller NumberNegotiated Seller NumberNumber assigned by Fannie Mae identifying the Person currently servicing a Structured Transaction. , you must register each Structured Transaction in

  • DUS GatewayDUS GatewayMultifamily pre-acquisition system, or any successor systems, recording deal registration, Pre-Review and/or waiver tracking, Mortgage Loan Commitments, and decision records. , and
  • MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. per the MSFMS Job Aid.
Section 602

Approval
602.01

Approval Documents

Operating Procedures

Fannie Mae will issue a Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. outlining the terms and conditions governing the Structured Transaction including pricing and certain fees.

602.02

Expiration Dates

Operating Procedures

You must contact the Fannie Mae Deal TeamFannie Mae Deal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. to modify any expiration date in the Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. .

602.03

Fees

Operating Procedures

The Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. outlines all fees and payment due dates. 

By each payment due date you must

  • wire the fee to Fannie Mae, or
  • have it drafted, if instructed by Fannie Mae.
602.04

Rate Lock

Operating Procedures

You must:

  

602.05

Loan Documents

Operating Procedures

The Fannie Mae Deal TeamFannie Mae Deal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. will give you the name and contact information for your assigned internal and outside counsel.

Fannie Mae’s outside counsel will prepare all Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. .

Section 603

Commitment
603.01

Generally

Requirements

You must certify that all data submitted is accurate and fairly represents the terms of

  • the Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. for the requested CommitmentsCommitmentsContractual agreement between you and Fannie Mae where Fannie Mae agrees to buy a Mortgage Loan at a future date in exchange for an MBS, or at a specific price for a Cash Mortgage Loan, and you agree to Deliver that Mortgage Loan. , and
  • any associated MBSMBSMortgage-Backed Security .
603.02

MBS Mortgage Loans

Requirements

You must ensure the DUS Gateway “Authorization to Close” status is “Authorized” before originating an MBS Mortgage LoanMBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. for any part of a Credit Facility'sCredit Facility'sStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. initial advance.

Operating Procedures

For MBS Mortgage LoansMBS Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. in a Credit FacilityCredit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. , you must:

  • comply with the
  • follow the DUS GatewayDUS GatewayMultifamily pre-acquisition system, or any successor systems, recording deal registration, Pre-Review and/or waiver tracking, Mortgage Loan Commitments, and decision records. process to
    • obtain a CommitmentCommitmentContractual agreement between you and Fannie Mae where Fannie Mae agrees to buy a Mortgage Loan at a future date in exchange for an MBS, or at a specific price for a Cash Mortgage Loan, and you agree to Deliver that Mortgage Loan. , and
    • receive an Authorization to Close.
DUS Gateway Process
Steps You must... Multifamily Structured Acquisitions will...
1
  • Select the "Credit Facility Module".
  • Navigate to the "Rate Lock/Commitment" page.
  
2

Within 1 Business DayBusiness DayAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. after obtaining the Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. , enter and save all Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. data for each MBS Mortgage LoanMBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. in the Credit Facility'sCredit Facility'sStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. initial advance by:

 

  • identifying the applicable "Loan Option"; and
  • selecting "Log Rate Lock/Commitment".
 Set the "Rate Lock/Commitment" status for each 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. to "Draft".
3
  • Confirm all Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. data for each MBS Mortgage LoanMBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. in the Credit Facility'sCredit Facility'sStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. initial advance was correctly entered.
  • Select "Finish Rate Lock/Commitment".
  • Change the "Rate Lock/Commitment" status for each 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. to:
    • "Accepted", if all validations pass; or
    • "Submitted for Review", if a review is required.
  • For all Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. "Submitted for Review":
    • change the "Rate Lock/Commitment" status to:
      • "Accepted", if no further action is required; or
      • "Draft", if corrections are required; and
    • notify you via email to revise and resubmit any "Rate Lock/Commitment" with a "Draft" status.
4
  • Identify each "Rate Lock/Commitment" status as
    • "Accepted", or
    • "Draft".
  • Revise and resubmit 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. "Rate Lock/Commitment" with a "Draft" status.
 Change the "Rate Lock/Commitment" status to "Accepted" after all validations pass.
5

On the "Final Underwriting" page, for each PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , either:

 

  • upload data for
    • underwriting,
    • underwritten value, and
    • income and expenses; or
  • manually enter the underwriting data.
  
6

On the "Credit Facility Checks" page for each MBS Mortgage LoanMBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. :

 

  • enter the final "Mortgage Loan Amount";
  • by entering the final "Mortgage Loan Amount", you acknowledge it:
  • if the rate is variable, enter the:
    • "Final Fixed Rate Equivalent Interest Rate";
    • "Final Cap Cost Factor"; and
    • "Final Structured ARM Principal Payment"; and
  • run and save the Credit Facility Checks to:
    • validate the submission; and
    • populate the Credit Facility Underwriting and Disclosure calculations.
  
7

On the "Authorization to Close" page, for each MBS Mortgage LoanMBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. :

 

  • select your Fannie Mae Seller Number from the dropdown menu;
  • select "Prepare Authorization to Close";
  • review the data;
  • check the "Lender Certification" box; and
  • select "Confirm Authorization to Close".
 Change the "Authorization to Close" status to "Authorized".

Guidance

Once the CommitmentCommitmentContractual agreement between you and Fannie Mae where Fannie Mae agrees to buy a Mortgage Loan at a future date in exchange for an MBS, or at a specific price for a Cash Mortgage Loan, and you agree to Deliver that Mortgage Loan. status is "Accepted", you may print a Commitment Confirmation.

Throughout the process, to resolve any data discrepancies or issues, you may use the Case Management function to request assistance from the

MBS Mortgage LoansMBS Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. in a Bulk DeliveryBulk DeliveryStructured Transaction governed by a Bulk Delivery Agreement that allows future: Mortgage Loan additions; and/or Property substitutions. are managed in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. ; no CommitmentCommitmentContractual agreement between you and Fannie Mae where Fannie Mae agrees to buy a Mortgage Loan at a future date in exchange for an MBS, or at a specific price for a Cash Mortgage Loan, and you agree to Deliver that Mortgage Loan. is required.

603.03

Cash Mortgage Loans

Requirements

For Cash Mortgage LoansCash Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for cash. in a Structured Transaction, you must obtain a CommitmentCommitmentContractual agreement between you and Fannie Mae where Fannie Mae agrees to buy a Mortgage Loan at a future date in exchange for an MBS, or at a specific price for a Cash Mortgage Loan, and you agree to Deliver that Mortgage Loan. through C&DC&DElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system. per Part IV, Chapter 2: Rate Lock and Committing, except for the following entries:

C&D Page Entry
Commitment
  • Select “Structured” as the “Delivery Channel Type”.
  • Enter the MSFMS Deal IDMSFMS Deal IDNumber assigned by MSFMS when registering a Structured Transaction. in the “Structured Facility Management Deal ID” field.
Participants
  • Enter at least 1 BorrowerBorrowerPerson who is the obligor per the Note. record.
  • Enter complete data for all deal participants separately in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .
Collateral None, this information is entered in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .
Section 604

Delivery
604.01

Delivery Process

Requirements

You must complete all 5 steps and submit all required data and documents by 5:00 p.m. Eastern Time, no later than 10 Business DaysBusiness DaysAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. before (and not including) the

  • purchase date for Cash Mortgage LoansCash Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for cash. , or
  • Book-Entry DateBook-Entry DateDate a Security is delivered by Fannie Mae via the Federal Reserve book-entry system to the applicable Investor’s designated book-entry account at a depository institution. for MBS Mortgage LoansMBS Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. .

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 Structured Transaction, comply with the MSFMS Job Aid and follow these 5 steps in order:

Step 1:  Submit Deal Participant and Collateral Data.

Step 2:  Deliver Property and Underwriting Documents.

Step 3:  Submit SARM Loan Interest Rate Cap Data.

Step 4:  Submit Pool and Mortgage Loan Data. 

Step 5:  Deliver Executed Structured Transaction Loan Documents.

Operating Procedures

Step You must...
1

Submit all required deal participant and collateral data in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .  On the:

 

  • Deal Participant page, submit data for each
    • 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. ,
    • GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. ,
    • SponsorSponsorPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). (which may be the same as the 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. ), and
    • 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. ; and
  • Collateral page, submit data for each PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , including the rent roll.
2 Deliver Property and Underwriting Documents in Folder II via DUSDUSDelegated Underwriting and Servicing DocWayDocWayBusiness-to-business electronic documentation delivery application, or any successor system. per Part IV, Chapter 4: Delivery, Section 402: Submission when you submit deal participant and collateral data in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. (Step 1).
3 Submit any SARM Loan Interest Rate Cap Data in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .
4

Submit Pool and Mortgage Loan Data:

 

  • For each MBS Mortgage LoanMBS Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for an issued MBS backed by the Mortgage Loan. you must:
    • Create an MBS PoolMBS PoolMBS Security backed by MBS Mortgage Loans. in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .  MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. will assign a Fannie Mae Pool NumberFannie Mae Pool NumberNumber assigned by Fannie Mae identifying an MBS Pool. and CUSIPCUSIPCommittee on Uniform Securities Identification Procedures 9-digit security identification number assigned by Fannie Mae to identify the MBS Pool in the book-entry system. number that uniquely identifies the MBS PoolMBS PoolMBS Security backed by MBS Mortgage Loans. for book-entry purposes.
    • Complete the necessary fields on the MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. “pool” and “loan” pages.
    • Comply with Part IV, Chapter 4: Delivery, Section 405.01: Acceptability and Delivery Tolerance for the Mortgage Loan’sMortgage Loan’sMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. first scheduled monthly payment date.
    • Ensure your MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. submission includes
      • complete and accurate wiring instructions for the SecuritySecurityMBS, PFP MBS, or REMIC. , and
      • the correct amount to be wired.
    • Address all MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. system business rules by validating the data to identify any errors or discrepancies between the entered data and the allowable terms.
  • For a Cash Mortgage LoanCash Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for cash. , you must:
    • Comply with Part IV, Chapter 5: Purchase unless this Chapter specifies otherwise.
    • Submit the required data in C&DC&DElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system. .
    • Comply with Part IV, Chapter 4: Delivery, except you must not complete the:
      • Collateral page - enter all property, underwriting, and rent roll data in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. ; or
      • “hedge” tab - enter cap data into MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .
  • Include the Fannie Mae payee code for your Cash Mortgage LoanCash Mortgage LoanMortgage Loan purchased by Fannie Mae in exchange for cash. proceeds.
5

Coordinate with your counsel and Fannie Mae’s outside counsel to timely 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.

 

  • individual transactions, and
  • fully executed Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. .

Guidance

On the Book-Entry DateBook-Entry DateDate a Security is delivered by Fannie Mae via the Federal Reserve book-entry system to the applicable Investor’s designated book-entry account at a depository institution. , Fannie Mae will electronically issue and deliver the MBSMBSMortgage-Backed Security through the Federal Reserve book-entry system using

You cannot change the wiring instructions in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. after the MBSMBSMortgage-Backed Security has been submitted for securitization.

604.02

MSFMS Data Errors

Operating Procedures

To address MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. errors:

Timing Action
Before Submission

If you believe

 

  • the data is correct, or
  • a message is related to information Fannie Mae approved,
    • select the “submit for review” system status, and
    • explain the issue.

 

Multifamily Structured AcquisitionsMultifamily Structured AcquisitionsTeam that can be contacted at [email protected]. will review the submission and will

 

  • override the error, or
  • return it to you to revise and resubmit with a “submitted” status.
After Submission

Email Multifamily Structured AcquisitionsMultifamily Structured AcquisitionsTeam that can be contacted at [email protected]. with the subject line “Deal Name – MSFMS Data Change Request,” if you

 

  • made an error, or
  • believe the data is incorrect after the MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. status is “submitted”.
Section 605

MBS Disclosure

Operating Procedures

MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. automatically flags all MBSMBSMortgage-Backed Security in Structured Transactions for Additional DisclosureAdditional DisclosureInformation you provide that is published as an addendum to the disclosure documents when an MBS is issued and describes special Security, Mortgage Loan, or Property characteristics or terms that differ from those described in the standard Multifamily MBS Prospectus. .  You must disclose all required information per Part IV, Chapter 5: Purchase, Section 504: MBS Mortgage Loan Disclosure.

Section 606

Features and Activities
606.01

Process

Operating Procedures

When adding, releasing, or substituting collateral:

  • do not create a new transaction in MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. (the activity will occur under the original MSFMS Deal IDMSFMS Deal IDNumber assigned by MSFMS when registering a Structured Transaction. ); and
  • comply with the Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. timing requirements.
Features and Activities
Activity You must... Process
Collateral Addition:  adding new collateral to an existing Structured Transaction Submit a request to the Fannie Mae Deal TeamFannie Mae Deal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. . 

Step 1:  Fannie Mae Deal TeamFannie Mae Deal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. will

 

  • determine if the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). addition complies with the Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. , and
  • send you a response.

 

Step 2:  If you receive a Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. , you must

 
Collateral Release: releasing collateral from an existing Structured Transaction Submit a request to Multifamily Structured Asset ManagementMultifamily Structured Asset ManagementTeam that can be contacted at [email protected]. perPart V, Chapter 4: Asset Management: Loan Document Administration, Section 416: Credit Facilities and Bulk Deliveries. 

Step 1:  Multifamily Structured Asset ManagementMultifamily Structured Asset ManagementTeam that can be contacted at [email protected]. will

 

  • determine if the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). release complies with the Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. , and
  • send you a response.

 

Step 2:  If you receive a Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. , you must:

 

  • change the MSFMSMSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. collateral status to “release requested”;
  • pay any applicable fees per the Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. or the Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. within 1 Business DayBusiness DayAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. after closing and releasing the collateral; and
  • notify Multifamily Structured Asset ManagementMultifamily Structured Asset ManagementTeam that can be contacted at [email protected]. and Multifamily Structured AcquisitionsMultifamily Structured AcquisitionsTeam that can be contacted at [email protected]. if you need to change the release date. 
Collateral Substitution: adding and releasing collateral in an existing Structured Transaction Submit a request to Multifamily Structured Asset ManagementMultifamily Structured Asset ManagementTeam that can be contacted at [email protected]. perPart V, Chapter 4: Asset Management: Loan Document Administration, Section 416: Credit Facilities and Bulk Deliveries. 

Step 1:  Fannie Mae Deal TeamFannie Mae Deal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. will

 

  • determine if the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). substitution complies with the Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. , and
  • send you a response.

 

Step 2:  If you receive a Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. , you must comply with both the Collateral Addition and Collateral Release processes in this table.

 

 

Step 3:  If Fannie Mae permits a delayed substitution per the Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. , you must:

 

  • Provide acceptable substitute collateral (such as cash, a Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. , or other permitted replacement collateral per the Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. ).
  • Add the substitute collateral within 90 days or other approved timeframe per the Structured Transaction ApprovalStructured Transaction ApprovalFannie Mae approval of a Structured Transaction outlining the terms, conditions, pricing, and fees. or the Structured Transaction Loan DocumentsStructured Transaction Loan DocumentsDocuments executed for a Structured Transaction, including a Master Credit Facility or Bulk Delivery Agreement, an Interest Rate Hedge Agreement, and all other required Loan Documents. .
Conversion to Fixed Rate:  converting an ARM Mortgage Loan to a fixed rate Mortgage Loan Submit a request to Multifamily Structured Asset ManagementMultifamily Structured Asset ManagementTeam that can be contacted at [email protected]. . If Fannie Mae approves the conversion, you must comply withPart IV, Chapter 7: Variable Rate Conversions and Renewals.
Borrow-Up:  funding additional loan proceeds without adding collateral Submit a request to Multifamily Structured Asset ManagementMultifamily Structured Asset ManagementTeam that can be contacted at [email protected]. perPart V, Chapter 4: Asset Management: Loan Document Administration, Section 416: Credit Facilities and Bulk Deliveries. 

If Fannie Mae approves the borrow-up, you must

 
606.02

Asset Management Activities

Operating Procedures

Per Part V, Chapter 4: Asset Management: Loan Document Administration, Section 416: Credit Facilities and Bulk Deliveries, for certain asset management activities you may need to deliver documents or data to Fannie Mae.  To complete these activities:

Asset Management Activities
Activity You must...
Delivering new or modified Structured Transaction Loan Documents Comply with Part IV, Chapter 6: Structured Transactions, Section 604: Delivery.
Processing any Transfer/Assumption Submit new deal participant data per Part IV, Chapter 6: Structured Transactions, Section 604.01: Delivery Process.
Renewing, replacing, or modifying an Interest Rate Cap
Performing any other activities for a Structured Transaction