Guide Update 24-01
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Brokered Transactions
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HIGHLIGHTS |
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Effective for Mortgage Loans Committed as of March 4, 2024, updated Guide requirements, forms, and underwriting certificates for Brokered Transactions. |
Primary Changes
- Updated Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals adding new requirements:
- for all Mortgage Loans, updated representations by the Borrower, Guarantor, and KP regarding:
- all financial statements' and schedules'
- dating,
- preparation by the certifying party or its independent accounting firm, and
- accuracy; and
- Property condition information provided to you or the PCA consultant; and
- all financial statements' and schedules'
- for any Brokered Transactions, requiring:
- direct delivery to you of
- financial statements and schedules, and
- Property condition information; and
- your certification that you
- obtained and reviewed all underwriting information,
- underwrote the Mortgage Loan,
- engaged third-party reports/consultants, and
- entered accurate data.
- direct delivery to you of
- for all Mortgage Loans, updated representations by the Borrower, Guarantor, and KP regarding:
- Updated Part II, Chapter 4: Inspections and Reserves, adding new requirements to ensure:
- for all Mortgage Loans, your qualified employee
- performs a physical Property inspection, and
- completes the MBA Standard Inspection Form;
- for any Brokered Transaction, you order
- all third-party underwriting reports, and
- a Brokered Transaction Inspection per Form 4229;
- you review and reconcile the Brokered Transaction Inspection report against the
- PCA, and
- MBA Standard Inspection Form;
- no Delivery of a Mortgage Loan if the Brokered Transaction Inspection's overall rating is 4 or 5; and
- you upload required documents into DocWay at Delivery.
- for all Mortgage Loans, your qualified employee
- Updated Part III, Chapter 9: Small Mortgage Loans, Section 907.01, adding new requirements for site inspections by a Lender or other third-party.
- Created:
- new Glossary terms for
- Brokered Transaction, and
- Mortgage Loan Broker; and
- a new Form 4229 for ordering a required Brokered Transaction Inspection.
- new Glossary terms for
- Revised Form 4636.TA:
- for a Transfer/Assumption involving a Brokered Transaction, you must:
- order a Brokered Transaction Inspection for a Property with an overall rating other than 1 on your most recent inspection;
- upload any Brokered Transaction Inspection report to MAMP; and
- submit for Fannie Mae's approval any Transfer/Assumption involving a Brokered Transaction with a required Brokered Deal Inspection overall rating of 4 or 5; and
- submit for Fannie Mae's approval any Transfer/Assumption of a Mortgage Loan including Hard Preferred Equity in the ownership structure of the Borrower at Delivery.
- for a Transfer/Assumption involving a Brokered Transaction, you must:
- Updated the following underwriting documents to add the Borrower, Guarantor, and Key Principal/Principal certifications:
- Multifamily Underwriting Certificate (Borrower) (Form 6460.Borrower);
- Multifamily Underwriting Certificate (Guarantor) (Form 6460.Guarantor);
- Multifamily Underwriting Certificate (Key Principal) (Form 6460.Key Principal); and
- Multifamily Mortgage Loan Delivery Package Table of Contents-Folder II (Form 6502.Folder II).
Questions
Please contact the Fannie Mae Deal Team with any questions.