Section 304

T&I Custodial Accounts

304.01

Deposits

Requirements

You must:

  • use T&I Custodial AccountsT&I Custodial AccountsCustodial Account for the deposit of T&I and other impound escrow funds. for
    • all BorrowerBorrowerPerson who is the obligor per the Note. payments for T&I ImpositionsT&I ImpositionsAmounts for taxes, insurance, and other charges assessed against or owing on the Property which you deem necessary to protect the Property and/or prevent Liens imposed on it. per Part V, Chapter 3: Custodial Accounts, Section 304.02: T&I Impositions, and
    • Servicing AdvancesServicing AdvancesAll amounts required to be paid by the Borrower, for all taxes and assessments against each Property, all insurance premiums for insurance for each Property to insurance carrier(s) acceptable to Fannie Mae, in accordance with the Guide, and any other payment, as determined by Fannie Mae,… you make for these items; and
  • not commingle T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. funds with
    • P&I Custodial AccountP&I Custodial AccountCustodial Account for principal and interest deposits. funds, or
    • Collateral Agreement Custodial AccountCollateral Agreement Custodial AccountCustodial account established by the Servicer for depositing funds received from the Borrower for Collateral Agreements. funds.

Operating Procedures

You may establish:

  • 1 T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. for all T&IT&ITaxes or assessments that may become a Lien on the Property and insurance premiums. deposits from all Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. ; or
  • 2 separate T&I Custodial AccountsT&I Custodial AccountsCustodial Account for the deposit of T&I and other impound escrow funds. , with funds for all 
    • Cash Mortgage LoansCash Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for cash. in 1 T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. , and 
    • Securitized Mortgage LoansSecuritized Mortgage LoansMortgage Loan backing an MBS, PFP MBS, or REMIC. in the other T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. .

You must obtain Fannie Mae’s consent to establish a separate T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. for an individual

  • 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. , or
  • BorrowerBorrowerPerson who is the obligor per the Note. .
304.02

T&I Impositions

Requirements

Unless precluded by the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , you must:

  • collect monthly payments from the BorrowerBorrowerPerson who is the obligor per the Note. ;
  • ensure all T&I ImpositionsT&I ImpositionsAmounts for taxes, insurance, and other charges assessed against or owing on the Property which you deem necessary to protect the Property and/or prevent Liens imposed on it. are timely paid, including:
    • real estate taxes;
    • special assessments;
    • water and sewer assessments;
    • PILOTsPILOTsPayment In Lieu Of Taxes. ;
    • insurance premiums;
    • ground lease rents; and
    • all other charges or obligations that could become a LienLienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. against 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). ; and
  • pay any penalty or late fee if you fail to make timely payments.

Guidance

You may:

  • Charge the BorrowerBorrowerPerson who is the obligor per the Note. for any penalty or late fee incurred if the failure to timely pay was due to insufficient T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. funds.
  • Use qualified third-party vendors (that you manage and monitor) to
    • collect T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. funds, and
    • pay T&I ImpositionsT&I ImpositionsAmounts for taxes, insurance, and other charges assessed against or owing on the Property which you deem necessary to protect the Property and/or prevent Liens imposed on it. .
304.03

Shortfalls

Requirements

T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. shortfalls must be paid by

  • the BorrowerBorrowerPerson who is the obligor per the Note. , or
  • you (i.e., a Servicing AdvanceServicing AdvanceAll amounts required to be paid by the Borrower, for all taxes and assessments against each Property, all insurance premiums for insurance for each Property to insurance carrier(s) acceptable to Fannie Mae, in accordance with the Guide, and any other payment, as determined by Fannie Mae,…).
304.04

Prohibited Uses

Requirements

You must not use any T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. funds to:

  • supplement a shortfall in the Borrower'sBorrower'sPerson who is the obligor per the Note. monthly P&IP&IPrincipal and interest payment to Fannie Mae;
  • reimburse yourself for any Servicing AdvanceServicing AdvanceAll amounts required to be paid by the Borrower, for all taxes and assessments against each Property, all insurance premiums for insurance for each Property to insurance carrier(s) acceptable to Fannie Mae, in accordance with the Guide, and any other payment, as determined by Fannie Mae,… unless it is recovered from subsequent collections for that 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. ; or
  • supplement a shortfall in a Borrower'sBorrower'sPerson who is the obligor per the Note. taxes or insurance payment using another Borrower'sBorrower'sPerson who is the obligor per the Note. tax or insurance deposits.

Guidance

You may use a Borrower'sBorrower'sPerson who is the obligor per the Note. own tax or insurance deposits to cover a shortfall in the Borrower'sBorrower'sPerson who is the obligor per the Note. tax or insurance obligation if you adjust future deposits per Part V, Chapter 3: Custodial Accounts, Section 308.04B: Insufficient Funds.

304.05

No Financing for T&I Impositions

Requirements

To pay any T&I ImpositionsT&I ImpositionsAmounts for taxes, insurance, and other charges assessed against or owing on the Property which you deem necessary to protect the Property and/or prevent Liens imposed on it. , you must not

  • provide financing to the BorrowerBorrowerPerson who is the obligor per the Note. , or
  • allow the BorrowerBorrowerPerson who is the obligor per the Note. to obtain financing.