Guide Update 20-10
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Multifamily MBS with REMIC Election
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HIGHLIGHTS |
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Effective for all MBS issued on or after January 1, 2021, Fannie Mae updated the Guide and related forms to facilitate Fannie Mae making a REMIC election when issuing a multifamily MBS. |
Primary Changes
Guide updates include:
- Part I, Chapter 1: Overview representations regarding Delivering a Mortgage Loan.
- Part III, Chapter 5: Seniors Housing Properties specifies that a Seniors Housing Mortgage Loan is ineligible for purchase if the original UPB exceeds 100% of the portion of the Appraised Value attributed to land and all Improvements, but excluding any portion attributed to goodwill, business value, intangibles, and/or furniture, fixture, and equipment.
- Part IV, Chapter 4: All MBS Mortgage Loans must be eligible for Fannie Mae to make a REMIC election when issuing the associated MBS.
Form updates include:
- Multifamily Additional Disclosure Guidance (Form 4098):
- A Mortgage Loan Delivered in an MBS without a REMIC Election:
- must be approved by Fannie Mae;
- requires Additional Disclosure; and
- is ineligible for re-securitization.
- Additional Disclosure characteristics were added or modified for:
- Commercial Condominium Projects;
- Non-Standard Events of Default and/or Personal Recourse Triggers or Recourse Events; and
- Properties with Multiple Addresses.
- A Mortgage Loan Delivered in an MBS without a REMIC Election:
- Delegated Transaction: Condemnations (Form 4636.C).
- Delegated Transaction: Partial Releases of Collateral (Form 4636.PR).
Questions
Please contact the Fannie Mae Deal Team with any questions.