504.02

Financial Reports and Information

504.02A

Borrower and Guarantor Notices

Operating Procedures

You:

  • Will receive an annual list of 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. requiring GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. financial records for the past fiscal year.
  • Must send the BorrowerBorrowerPerson who is the obligor per the Note. and GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. a list of all required financial reports.
  • Must provide the BorrowerBorrowerPerson who is the obligor per the Note. and GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. sufficient time for you to submit certified financial reports:
    • for BorrowersBorrowersPerson who is the obligor per the Note. ,
      • within 45 days after the end of each fiscal quarter, and
      • 120 days after the end of each fiscal year; and
    • for GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , by June 1.
  • Must use best efforts to obtain all required reports.
  • Must promptly submit all GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. financial reports received per Part V, Chapter 5: Surveillance, Section 504.02C: Review Financial Reporting.
504.02B

Borrower Fails to Provide Guarantor Financial Reports

Operating Procedures

You must immediately notify Fannie Mae and the BorrowerBorrowerPerson who is the obligor per the Note. or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. if:

  • the BorrowerBorrowerPerson who is the obligor per the Note. fails to submit the required GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. financial reports and information by the date required per the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ;
  • the GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. fails to certify each financial report is true, complete, and accurate in all material respects; or
  • you believe any financial report or information is materially inaccurate or misleading.

You must provide:

  • the BorrowerBorrowerPerson who is the obligor per the Note. or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. 30 days to deliver/certify all required financial reports and information; and
  • Fannie Mae copies of all related correspondence with the BorrowerBorrowerPerson who is the obligor per the Note. or any GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
If the Borrower or a Guarantor... You...

Fails to:

 

  • timely submit all required information; or
  • respond to at least 3 written notices.

Must request a waiver through:

 

  • 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. for financials required from the BorrowerBorrowerPerson who is the obligor per the Note. ; or
  • Sponsor Financials for financials required from the GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
Is diligently attempting to deliver all required information. May extend the 30-day period by an additional 30 days.
504.02C

Review Financial Reporting

 

Operating Procedures

After reviewing the BorrowerBorrowerPerson who is the obligor per the Note. or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. information:

If you determine... You must...
No additional follow up is required
  • Submit the certified material through:
    • 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. for the BorrowerBorrowerPerson who is the obligor per the Note. ; and
    • Sponsor Financials for GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
  • Retain the information in your Servicing FileServicing FileYour file for each Mortgage Loan serviced. .
Additional or supporting information is required
  • Promptly: 
    • contact the BorrowerBorrowerPerson who is the obligor per the Note. or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. to request additional information; and
    • submit a copy of all financial reporting, explanatory schedules, and other supporting information through
      • 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. for the BorrowerBorrowerPerson who is the obligor per the Note. , and
      • Sponsor Financials for GuarantorsGuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
  • Retain the information in your Servicing FileServicing FileYour file for each Mortgage Loan serviced. .

 

504.02D

Records

Requirements

For 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. term, your Servicing FileServicing FileYour file for each Mortgage Loan serviced. must include the originals of the following BorrowerBorrowerPerson who is the obligor per the Note. and GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. information:

  • financial records;
  • certifications and certified material; and
  • related information and explanatory schedules.