Chapter 8

In Place Loans

Section 801

Eligibility

Requirements

A Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. is eligible to be refinanced with an In Place LoanIn Place LoanMortgage Loan refinancing a Portfolio Mortgage Loan that does not meet Tier 2 underwriting requirements. if the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). :

  • operations were stable or trended positively during the 12 months before refinancing; and
  • complies with the GuideGuideMultifamily Selling and Servicing Guide controlling all Lender and Servicer requirements unless a Lender Contract specifies otherwise. other than meeting the TierTierTier 1, Tier 2, Tier 3, or Tier 4 per the Multifamily Underwriting Standards (Form 4660). 2 underwriting requirements.

Guidance

To refinance a Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. with an In Place LoanIn Place LoanMortgage Loan refinancing a Portfolio Mortgage Loan that does not meet Tier 2 underwriting requirements. :

Topic Should...
Portfolio Mortgage Loan Have a timely payment history during the 12 months before refinance.
Borrower
  • Have a satisfactory relationship with Fannie Mae.
  • Not be able to refinance the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. on commercially viable terms outside Fannie Mae.
  • Not have had any unauthorized transfers or changes of ownership interest.
Property
  • Have a
  • Only require repairs that can reasonably be made with refinancing proceeds.
  • Have no unauthorized LiensLiensLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. .
You
  • Have loss sharing on the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. .
  • Document in the Transaction Approval Memo that refinancing will
    • reduce the Portfolio Mortgage Loan'sPortfolio Mortgage Loan'sMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. credit risk, and
    • not merely delay a foreclosure that may increase losses.

Fannie Mae may also require:

  • PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). improvements to increase cash flow;
  • PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). management changes;
  • increased Replacement ReservesReplacement ReservesCustodial Account funded during the Mortgage Loan term for major maintenance and replacing capital items per the Loan Documents. ; or
  • other risk-mitigating terms.
Section 802

Representations

Requirements

Unless modified by this Chapter, you must provide the same selling and servicing representations and warranties required for a newly originated 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. .