Primary Changes

To better monitor the operating performance and property condition for a Property consisting of Non-Contiguous Parcels, you must:

• collect and enter consistent, detailed Property-level data for each Non-Contiguous Parcel; and
• use consistent references for each Non-Contiguous Parcel in all systems and documents (e.g., DUS Gateway, C&D, MSFMS, Underwriter’s Narrative, Form 4662, operating statements, rent rolls, inspection reports).  

Underwriting

When underwriting a Property consisting of Non-Contiguous Parcels securing a single Mortgage Loan, you may consolidate the underwriting in a single Transaction Approval Memo provided you:

• collect detailed data for each Non-Contiguous Parcel, including separate
  • rent rolls, and
  • operating statements; and
• enter accurate Property records for each Non-Contiguous Parcel in DUS Gateway before requesting a quote.

To ensure you have the necessary data, you must:

• Use the Property name, if applicable, and address to reference each Non-Contiguous Parcel; however, for a Supplemental Mortgage Loan, enter the same address(es) as for the Portfolio Mortgage Loan.
• Ensure the Property’s Underwritten Pro Forma Income Statement:
  • separately itemizes each Non-Contiguous Parcel’s identification, preferably using the name and address for each parcel; and
  • has sufficient detail to comply with Part II, Chapter 1: Attributes and Characteristics, Section 102: Multiple Properties.
• Require every third-party report to assess, separately and in the aggregate, each Non-Contiguous Parcel.  The consultant may issue a consolidated third-party report for the entire Property, provided each Non-Contiguous Parcel is identified and assessed separately.

Committing and Delivery

You must: 

• Confirm the applicable acquisition system’s Property Collateral records match and include all parcels identified in the DUS Gateway quote.
• Use separate “Property Names” to:
  • uniquely identify each Non-Contiguous Parcel submitted as a separate Property Collateral record; and
  • consistently reference each Non-Contiguous Parcel.
• Use the updated Job Aid: Guidance for Entering Multiple Property Addresses in Acquisition Systems when entering each Non-Contiguous Parcel as a separate Property Collateral record in C&D.
• For each Non-Contiguous Parcel entered as a separate Property Collateral record in the applicable acquisition system, submit a
  • Form 4662, and
  • rent roll.
• At Delivery, enter separate income, expenses, and Underwriting Value in the "Underwriting Data" section, using:
  • the separate operating statements and rent rolls for each Non-Contiguous Parcel entered as a Collateral Record; and
  • for the Underwriting Value, an allocated approach if the Appraisal does not breakout separate values for each Non-Contiguous Parcel, as follows:

Asset Management

For each Property Collateral record in the MAMP you must obtain separate

• operating statements,
• inspection reports, and
• rent rolls.

When completing Form 4254, you must: 

• receive separate operating statements for each Non-Contiguous Parcel, with the income and expenses reflecting actual results of operations for each Non-Contiguous Parcel;
• require inspection reports for each Non-Contiguous Parcel shown as a separate Property Collateral record; and
• allocate the debt service throughout the life of the Mortgage Loan based on the same % GPR Per Collateral Record as calculated during underwriting.

Questions

Please contact the Fannie Mae Deal Team or [email protected] with any questions.