Property's Sale History

Requirements

You must:

• analyze the Property’sProperty’sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). sale history for the last 3 years, including any transfer of a Controlling InterestControlling InterestFor any entity, ownership or control of 50% or more of the ownership interests in the entity or the power or right to control or modify, directly or indirectly, the management and operations of the entity. in the owner;
• address the following in your Transaction Approval Memo:
  • if a sale occurred within the last 24 months, document the
    • circumstances of the sale, and
    • support for any increased Appraised ValueAppraised ValueAppraiser’s opinion of the Property's market value documented in the Appraisal, on an “as is” basis, unless use of an “as completed” basis is specifically permitted per the Guide. by analyzing any
      • Net Cash FlowNet Cash FlowOn an annual basis or any specified period, the total Net Operating Income, minus the full amount underwritten for Replacement Reserve expense, regardless of whether deposits will be made (per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and… increases,
      • capitalization rate compression, and
      • value-add market drivers; and
  • if any stated sales price per the purchase/sales agreement differs from the transfer price per the public records or third-party reports, investigate and document the discrepancy;
• for any acquisition, confirm the seller was 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). owner in the real estate records when the purchase/sales agreement was signed;
• evaluate the purchase/sale contracts to
  • clearly identify the
    • seller, and
    • purchaser, and
  • confirm the sale was an arm's length transaction;
• review the final settlement statement before the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. to confirm accuracy of the
  • purchase price,
  • closing costs, and
  • any cash in/out to the seller and purchaser; and
• submit a copy of:
  • the final settlement statement at DeliveryDeliverySubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. ; and
  • all purchase/sales contracts and amendments to
    • the AppraiserAppraiserPerson engaged to estimate a Property’s market value per USPAP. , and
    • Fannie Mae.