502.03
Property Inspection Protocol
Guidance
PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). inspection frequency is based on
- the current Fannie Mae risk rating,
- the 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. amount at the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. , and
- a full inspection (unless otherwise noted) of the specified percentage of units per the Property Inspection Protocol table criteria, but not:
- less than the specified minimum; and
- more than the specified maximum.
If the scheduled inspection due date is within 6 months of the Maturity DateMaturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. , 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. inspection due date will be set to 6 months before the Maturity DateMaturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. .
Operating Procedures
You must complete:
- a post-origination PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). inspection within 12 months; and
- additional PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). inspections per the Inspection Frequency column in the following table.
| Property Inspection Protocol | ||||||
|---|---|---|---|---|---|---|
| If the original Mortgage Loan Amount is greater than $30 million... | ||||||
| Type | Fannie Mae Risk Rating | Inspection Frequency | Number of Units to Inspect |
Minimum # of Photos Total (Interior/Exterior) |
Inspector | |
| % |
Min/Max |
|||||
| All Mortgage Loans |
|
Annual | 5% | 5/15 | 20 (5/15) |
|
| Substandard | Annual | 10% | 10/20 | 20 (5/15) | In-House Only | |
| If the original Mortgage Loan Amount is greater than $6 million and less than or equal to $30 million... | ||||||
| NOTE: DSCR is per the most recent annual financial statement submitted to Fannie Mae. | ||||||
| Type | Fannie Mae Risk Rating | Inspection Frequency | Number of Units to Inspect |
Minimum # of Photos Total (Interior/Exterior) |
Inspector | |
| % |
Min/Max |
|||||
| Most Recent Inspection rating of 4 or 5 | All Ratings | Annual | 10% | 10/20 | 20 (5/15) | In-House Only |
|
|
Annual | 5% | 5/15 | 20 (5/15) |
|
| Substandard | Annual | 10% | 10/20 | 20 (5/15) | In-House Only | |
| Maturing | All Ratings | Within 12 months before Maturity DateMaturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. | Per applicable 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. type. | |||
| All Others |
|
|
5% | 5/15 | 20 (5/15) |
|
|
Annual | 5% | 5/15 | 20 (5/15) |
|
|
| Substandard | Annual | 10% | 10/20 | 20 (5/15) | In-House Only | |
| If the original Mortgage Loan Amount is $6 million or less... | ||||||
| NOTE: If the Property has 10 units or less, at least 2 units must be inspected. | ||||||
| Type | Fannie Mae Risk Rating | Inspection Frequency | Number of Units to Inspect |
Minimum # of Photos Total (Interior/Exterior) |
Inspector | |
| % |
Min/Max |
|||||
| Most Recent Inspection rating of 4 or 5 (unless Delivered Mortgage Loan Amount was less than $750,000) | All Ratings | Annual | 10% | 10/20 | 20 (5/15) | In-House Only |
|
|
Annual | 5% | 5/15 | 20 (5/15) |
|
| Substandard | Annual | 10% | 10/20 | 20 (5/15) | In-House Only | |
| Maturing | All Ratings | Within 12 months before Maturity DateMaturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. | Per applicable 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. type. | |||
| All Others |
|
Walk Around every 5 years | N/A | N/A | 15 (exterior photos only) |
|
|
Every 2 years | 5% | 2/5 | 15 (5/10) |
|
|
| Substandard | Annual | 10% | 2/5 | 15 (5/10) | In-House Only | |