Primary Changes

For all Properties not yet Delivered, if the Property

• is located in Texas or one of the surrounding States impacted by Winter Storm Uri, and
• experienced below average temperatures from February 14 through February 21, 2021 (Weather Event), you must confirm
  • the plumbing system is in satisfactory working order, and
  • whether damage or flooding issues are present in common areas and interior units.

Additionally, for a Mortgage Loan secured by a Property impacted by the Weather Event:

• If the Mortgage Loan Origination Date has not yet occurred and the Property was inspected before February 14, 2021:
  • the Borrower must certify no damage occurred from the Weather Event; or
  • if the Borrower certifies damage occurred:
    • the engineer must re-inspect the Property and estimate the damage;
    • you must require a Completion/Repair Escrow based on the inspection; and
    • the Weather Event-related Completion/Repairs must be completed within 6-months after the Mortgage Loan Origination Date.
• If the Mortgage Loan Origination Date has occurred but the Mortgage Loan has not yet Delivered:
  • the Borrower must certify no damage occurred from the Weather Event, and the standard Borrower and Lender representations and warranties will apply when the Mortgage Loan is Delivered; or
  • if the Borrower certifies damage occurred:
    • you must obtain remediation plans from the Borrower including scope, cost, and completion before Delivery; or
    • if repairs cannot be completed before Delivery,
      • you must comply with Part V, Chapter 4: Asset Management: Loan Document Administration, Section 414: Casualty Losses – Performing Mortgage Loans, and
      • if the repairs exceed the lesser of $75,000 or 20% of the UPB, you must submit the transaction to Portfolio Risk Management at [email protected] before Delivery.

Questions

Please contact the following with any questions:

• the Fannie Mae Deal Team for Properties not yet under application;
• Kelly Ormsby at (312) 368-7114, or [email protected], for Properties under application; and
• Portfolio Risk Management at [email protected] for Properties with a Committed Mortgage Loan, but have not yet Delivered.