502.06E

Collateral Analysis

Operating Procedures

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). needs repairs or maintenance:

Step	Activity	You must...
1	Notify BorrowerBorrowerPerson who is the obligor per the Note.	Within 45 days after the inspection date, identify the repair or maintenance issues, include any photos, and direct the BorrowerBorrowerPerson who is the obligor per the Note. to timely complete the work. Use Form 4830 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). inspection rating is 3, 4, or 5.
2	Follow Up	Follow up to ensure the BorrowerBorrowerPerson who is the obligor per the Note. responded and the work was successfully completed. If not: notify the BorrowerBorrowerPerson who is the obligor per the Note. ; notify Multifamily InspectionsMultifamily InspectionsTeam that can be contacted at [email protected]. ; and include your resolution recommendation. Use Form 4831 or Form 4832 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). inspection rating is 3, 4, or 5.
3	Set Rating	Set 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). inspection overall rating to 4 (or 5 depending on the severity or other existing issues) if: 10% or more of the units are down for any reason; or there is casualty damage equal to 25% of the current UPBUPBUnpaid Principal Balance , or $1 million.

Step

Activity

You must...

Notify

Within 45 days after the inspection date,
- identify the repair or maintenance issues,
- include any photos, and
- direct the BorrowerBorrowerPerson who is the obligor per the Note. to timely complete the work.
Use Form 4830 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). inspection rating is 3, 4, or 5.

Follow Up

Follow up to ensure the BorrowerBorrowerPerson who is the obligor per the Note. responded and the work was successfully completed. If not:
- notify the BorrowerBorrowerPerson who is the obligor per the Note. ;
- notify Multifamily InspectionsMultifamily InspectionsTeam that can be contacted at [email protected]. ; and
- include your resolution recommendation.
Use Form 4831 or Form 4832 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). inspection rating is 3, 4, or 5.

Set Rating

Set 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). inspection overall rating to 4 (or 5 depending on the severity or other existing issues) if:

10% or more of the units are down for any reason; or
there is casualty damage equal to
- 25% of the current UPBUPBUnpaid Principal Balance , or
- $1 million.

Guidance

Setting 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). inspection rating to 4 or 5 does not:

add 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. to Fannie Mae’s WatchlistWatchlistThe risk rating classification if you or Fannie Mae determine the Mortgage Loan has heightened credit risk. ;
require an Action PlanAction PlanYour report analyzing the Mortgage Loan and Property issues, your resolution strategy, and related actions and outcomes. ; or
require Replacement ReservesReplacement ReservesCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. reinstatement if the rating is the result of a casualty loss unless you
- identify other performance issues that increase credit risk, or
- expect insufficient funds or insurance proceeds to restore 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). to its original condition.