104.01

Borrower Obligations

104.01A

Payments

Operating Procedures

Collect all of the following from the BorrowerBorrowerPerson who is the obligor per the Note. :

  • reimbursement of all amounts Fannie Mae paid or is due per any:
    • Credit Enhancement InstrumentCredit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for BondsMBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. ;
    • Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. or Reimbursement Agreement;
    • 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. Collateral AgreementCollateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. ; and
    • Interest Rate Cap AgreementInterest Rate Cap AgreementContract setting forth the terms and conditions of an Interest Rate Cap, Hedge, or Swap. or other interest rate hedge;
  • any Facility Fee and/or Activity Fee for an unreimbursed Liquidity Advance per the Reimbursement Agreement;
  • all amounts required to replenish the PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. ;
  • any Prepayment PremiumPrepayment PremiumFor a Mortgage Loan prepayment, amount the Borrower must pay in addition to the prepaid principal and accrued interest per the Loan Documents. or other Termination Fee;
  • any other fees, expenses, or additional costs due per any
    • Credit Enhancement InstrumentCredit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for BondsMBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. ,
    • Security InstrumentSecurity InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the Loan Document obligations. ,
    • Reimbursement Agreement, or
    • other Loan DocumentLoan DocumentAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ; and
  • any other amounts due Fannie Mae or the Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. .
Steps Activity...
Calculate the Amount Due

After receiving the information to calculate the amount due, you must

 

  • immediately invoice the BorrowerBorrowerPerson who is the obligor per the Note. , and
  • remit the funds to the appropriate parties per the Reimbursement Agreement or Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .
Advance Funds Notification

Fannie Mae will notify you of the amount disbursed on or after each disbursement date for any:

 

  • Credit Enhancement InstrumentCredit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for BondsMBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. ;
  • Loan DocumentLoan DocumentAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ; or
  • other 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. Collateral AgreementCollateral AgreementAgreement granting a security interest in Mortgage Loan collateral not covered by the Security Instrument. .
Payment Timing

You must remit all BorrowerBorrowerPerson who is the obligor per the Note. payments per the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. or Fannie Mae’s instructions.


If you do not pay Fannie Mae or the Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. until the next Business DayBusiness DayAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. , you must

 

  • invest the funds overnight, and
  • remit all investment earnings to Fannie Mae or the Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. with the payment.

 

For BorrowerBorrowerPerson who is the obligor per the Note. payments received after 4:00 p.m. Eastern Time, you must use your best efforts to invest the funds.
104.01B

Principal Reserve Fund

Requirements

You must ensure no PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. withdrawal occurs without Fannie Mae's approval.

Operating Procedures

For each Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan financed by a Bond issuance where Fannie Mae provides credit enhancement by a Credit Enhancement Instrument, or an MBS for Bonds. , you must:

  • Review the Bond Trustee'sBond Trustee'sTrustee for a Credit Enhancement Instrument. reported PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. balance.
  • Collect from the BorrowerBorrowerPerson who is the obligor per the Note. any amount withdrawn from the PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements. , including withdrawals reimbursing Fannie Mae for amounts it paid per the
    • Credit Enhancement InstrumentCredit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or MBS for BondsMBS for BondsFannie Mae MBS: issued to credit enhance tax-exempt Bonds; or exchanged for Bonds redeemed at MBS issuance. , or
    • Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .