603.01

Primary Risk Mortgage Loans

Requirements

You must submit an Action PlanAction PlanYour report analyzing the Mortgage Loan and Property issues, your resolution strategy, and related actions and outcomes. for any Primary Risk Mortgage LoanPrimary Risk Mortgage LoanMortgage Loan where Fannie Mae bears all losses or where the Lender and Fannie Mae share losses.

  • identified as a Substandard Asset on Fannie Mae’s WatchlistWatchlistThe risk rating classification if you or Fannie Mae determine the Mortgage Loan has heightened credit risk. , and
  • with an Action PlanAction PlanYour report analyzing the Mortgage Loan and Property issues, your resolution strategy, and related actions and outcomes. work item 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. .

The Action PlanAction PlanYour report analyzing the Mortgage Loan and Property issues, your resolution strategy, and related actions and outcomes. must explain

  • all areas of concern,
  • the Sponsor'sSponsor'sPrincipal equity owner and/or primary decision maker of the Borrower (often the Key Principal or the Person Controlling the Key Principal). strategy and timing,
  • your actions to resolve the issues, and
  • any results.

Operating Procedures

For a Small Mortgage LoanSmall Mortgage LoanMortgage Loan with an original loan amount less than or equal to $6 million and underwritten per Part III, Chapter 9: Small Mortgage Loans. , do not create an Action PlanAction PlanYour report analyzing the Mortgage Loan and Property issues, your resolution strategy, and related actions and outcomes. unless Fannie Mae requires it.

For each Action PlanAction PlanYour report analyzing the Mortgage Loan and Property issues, your resolution strategy, and related actions and outcomes. :

  • Review 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. module.
  • Review the Action Plan Submission Process Guide under ”Guides and Templates” 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. .
  • Create a new one or update an existing one twice a year to:
    • document material changes and/or updates since the previous Action PlanAction PlanYour report analyzing the Mortgage Loan and Property issues, your resolution strategy, and related actions and outcomes. ;
    • identify causes of the issues and additional actions you and the BorrowerBorrowerPerson who is the obligor per the Note. took;
    • explain how the actions will reduce or mitigate risk and loss; and
    • report the results of previous actions.
  • Use the prescribed format to submit it 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. by the “Submission Due Date”.