Primary Changes

For all Properties not yet Delivered, if the Property is located in Louisiana or another State impacted by Hurricane Ida, you must confirm the Property:

• is accessible;
• is in livable condition;
• has working utilities; and
• has no damage or flooding issues in
  • external areas,
  • common areas, or
  • interior units.

Additionally, for a Mortgage Loan secured by a Property impacted by Hurricane Ida:

• If the Mortgage Loan Origination Date has not yet occurred and the Property was inspected before August 29, 2021:
  • the Borrower must certify no damage occurred from Hurricane Ida; 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
    • Hurricane Ida-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 Hurricane Ida, 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.