Primary Changes

• Added a Green Rewards Verification section (Part V, Chapter 4: Asset Management: Loan Document Administration, Section 408.03I: Green Rewards Efficiency Measure Verification) requiring the Servicer to:
  • ensure a compliant Green Rewards Verification inspection of the installed Efficiency Measure is performed by an inspector who:
    • meets the experience requirements;
    • inspects the appropriate number and combination of vacant and occupied units; and
    • determines compliance;
  • notify the Borrower of non-compliance;
  • submit any non-compliance remediation plans through DUS Property Monitor;
  • coordinate with Fannie Mae to confirm remediation;
  • review and submit Form 4221 to [email protected].
• Before releasing the associated Completion/Repair Escrow for an Efficiency Measure, the Servicer must ensure the installed Efficiency Measure is
  • reported as compliant on Form 4221, or
  • remediated, then approved and closed by Fannie Mae.
• For Green Rewards Efficiency Measures included in a Moderate Rehabilitation Mortgage Loan, funds may be periodically disbursed from the applicable Completion/Repair Escrow or Rehabilitation Reserve Escrow as with a non-Green Rewards Mortgage Loan, rather than only after a compliant Verification inspection of Efficiency Measures.
• Moved requirements for managing the Efficiency Measure Completion/Repair Escrow from Part III, Chapter 4 into Part V, Chapter 4.
• Clarified the appropriate Property Inspection Form in Part V, Section 502, including using Form 4221 for Green Rewards Mortgage Loans.

Questions

Please contact Dave Miller at (202) 752-6297, or [email protected], with any questions.