2003.10

Forward Commitment Termination

Guidance

Fannie Mae may terminate the Forward CommitmentForward CommitmentCommitment to purchase a permanent Mortgage Loan for a to-be constructed or rehabilitated Property. if:

  • You fail to DeliverDeliverSubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. a permanent 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. per the Forward Commitment Confirmation terms and conditions.
  • The BorrowerBorrowerPerson who is the obligor per the Note. does not begin PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). construction or substantial rehabilitation within 180 days after you accept the Forward CommitmentForward CommitmentCommitment to purchase a permanent Mortgage Loan for a to-be constructed or rehabilitated Property. .
  • A construction loan default occurs and is not cured within 90 days.
  • A substantial construction defect occurs that may threaten tenant life and safety unless:
    • the BorrowerBorrowerPerson who is the obligor per the Note. repairs the defect within 90 days;
    • the repairs satisfy both you and your consulting architect; and
    • after paying all repair costs, the available remaining funds are sufficient to pay for all
      • work performed,
      • materials used or ordered, and
      • other required unpaid project costs per the contract.

Requirements

If Fannie Mae terminates the Forward CommitmentForward CommitmentCommitment to purchase a permanent Mortgage Loan for a to-be constructed or rehabilitated Property. , all applicable fees must be paid per the Forward CommitmentForward CommitmentCommitment to purchase a permanent Mortgage Loan for a to-be constructed or rehabilitated Property. terms. 

If the BorrowerBorrowerPerson who is the obligor per the Note. terminates the Forward CommitmentForward CommitmentCommitment to purchase a permanent Mortgage Loan for a to-be constructed or rehabilitated Property. , you must:

  • submit a request to collapse the transaction to the Fannie Mae Deal TeamFannie Mae Deal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. and the Forwards TeamForwards TeamTeam that can be contacted at [email protected]. at least 30 days before the Forward CommitmentForward CommitmentCommitment to purchase a permanent Mortgage Loan for a to-be constructed or rehabilitated Property. expiration;
  • for BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. transactions, coordinate with Fannie Mae’s counsel; and
  • contact Multifamily AcquisitionsMultifamily AcquisitionsTeam that can be contacted at [email protected]. to withdraw the transaction in C&DC&DElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system. .