Generally

Requirements

Before the Commitment DateCommitment DateDate a Commitment is confirmed by Fannie Mae per Part IV, Chapter 2: Rate Lock and Committing, Section 204: Commitments. , you must:

• complete a thorough lease audit to reconcile the rent roll with 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). signed leases; and
• comply with the following table.

When auditing the leases, you must:

• analyze the entire tenant file, including, whenever available
  • identification records,
  • verification of employment and income, and
  • credit verifications;
• audit leases for all inspected units;
• include new and recently renewed leases to verify rent trends;
• increase the number of leases reviewed if you find
  • material discrepancies, or
  • lack of adequate documentation in the files;
• document your results in a lease audit form; and
• summarize the results in your Transaction Approval Memo, including any documents that were unavailable for review, and why.

If the management company engages a third party to review and approve the tenant qualification documents, you must:

• review the documents; and
• explain your rationale in the Transaction Approval Memo if any documents are unavailable for review (e.g., a national tenant qualification firm completed and documented the review, etc.).