702.02
Minimum Conversion Debt Service Ratio
Requirements
| To convert... |
You must... |
|---|
| A Mortgage Loan to a fixed rate |
Confirm the Minimum Conversion Debt Service Ratio (per the Interest Rate Conversion AgreementInterest Rate Conversion AgreementDocument describing the terms and conditions when a Mortgage Loan interest rate may convert from an adjustable rate to a fixed rate.
) is met. |
| A Supplemental Mortgage Loan to a fixed rate |
Confirm the Minimum Conversion Debt Service Ratio is met using the sum of
- the current annual combined debt service of all Pre-Existing Mortgage LoansPre-Existing Mortgage LoansMultifamily residential real estate loan secured by Liens against the Property having higher priority than the Lien securing the Subordinate Loan purchased by Fannie Mae.
(using the maximum interest rate for any variable rate Pre-Existing Mortgage LoanPre-Existing Mortgage LoanMultifamily residential real estate loan secured by Liens against the Property having higher priority than the Lien securing the Subordinate Loan purchased by Fannie Mae.
), plus
- the annual debt service of the converted fixed rate Supplemental Mortgage LoanSupplemental Mortgage LoanMortgage Loan purchased by Fannie Mae that is subordinated to, and has a Mortgage Loan Origination Date after, the Senior Mortgage Loan that is also owned by Fannie Mae.
.
|
