418.07
Expanded Housing Choice
A 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. with an Expanded Housing Choice pricing incentive requires additional monitoring. Per the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:
- receive from the BorrowerBorrowerPerson who is the obligor per the Note.
a Supplemental Annual Loan Agreement Certification (Expanded Housing Choice) (Form 6620.Supplemental.Expanded Housing Choice), including:
- a rent schedule or rent roll identifying all units where rent is paid using Housing Choice VouchersHousing Choice VouchersAny rental assistance payment or voucher to an eligible tenant under Section 8 of the United States Housing Act of 1938, 42 U.S.C. § 1437f, as amended. ;
- a report for all rental applications seeking to use Housing Choice VouchersHousing Choice VouchersAny rental assistance payment or voucher to an eligible tenant under Section 8 of the United States Housing Act of 1938, 42 U.S.C. § 1437f, as amended.
, including:
- the number of rental applications;
- the current status; and
- an explanation for all denied applications; and
- for the first annual Certification, complete lease files for at least 25% of the tenants paying rent using Housing Choice VouchersHousing Choice VouchersAny rental assistance payment or voucher to an eligible tenant under Section 8 of the United States Housing Act of 1938, 42 U.S.C. § 1437f, as amended. ;
- review Form 6620.Supplemental.Expanded Housing Choice and the rent roll for reasonableness and completeness, and notify Fannie Mae via a Borrower Request in the MAMPMAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. of any Certification issues, including non-delivery;
- within 30 days after receiving the first Form 6620.Supplemental.Expanded Housing Choice, compare the Housing Choice VoucherHousing Choice VoucherAny rental assistance payment or voucher to an eligible tenant under Section 8 of the United States Housing Act of 1938, 42 U.S.C. § 1437f, as amended. lease files to the rent roll and notify Fannie Mae via a Borrower Request in the MAMPMAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. of any discrepancies;
- ensure the BorrowerBorrowerPerson who is the obligor per the Note. conducts any Fair Housing training required by Fannie Mae for its employees;
- submit a Non-Monetary Default Borrower Request in the MAMPMAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. if the required Fair Housing training is not completed within the required timeframe;
- notify the BorrowerBorrowerPerson who is the obligor per the Note. in writing of any default under the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. and any required recapture of the pricing incentive;
- submit a copy of any BorrowerBorrowerPerson who is the obligor per the Note. notice for recapturing the pricing incentive via a Non-Monetary Default Borrower Request in the MAMPMAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. ; and
- retain in its Servicing FileServicing FileYour file for each Mortgage Loan serviced.
, copies of:
- Form 6620.Supplemental.Expanded Housing Choice and the rent roll;
- the results of the rent roll and lease file review submitted with the first Form 6620.Supplemental.Expanded Housing Choice; and
- any BorrowerBorrowerPerson who is the obligor per the Note.
notices required for:
- Fair Housing training;
- Loan DocumentLoan DocumentAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. default; or
- pricing incentive recapture.
Fannie Mae:
- may conduct Fair Housing testing for a 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. delivered with an Expanded Housing Choice pricing incentive;
- will notify the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. if the Fair Housing testing or any other information reveals the BorrowerBorrowerPerson who is the obligor per the Note. is not complying with Part II, Chapter 1: Attributes and Characteristics, Section 101.02: Expanded Housing Choice; and
- for any noncompliance, may:
- require the Borrower'sBorrower'sPerson who is the obligor per the Note. employees to complete Fair Housing training; and/or
- notify the BorrowerBorrowerPerson who is the obligor per the Note. it is in default and require the BorrowerBorrowerPerson who is the obligor per the Note. to repay the pricing incentive per the Multifamily Loan Agreement and Payment Guaranty (Pricing Incentive Recapture) (Form 6020.PIR).