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 any amount withdrawn from the PRFPRFAccount you hold accumulating principal amortization payments for variable rate Bond credit enhancements.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. .