907.01 | |
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Requirements
You must ensure:
- your qualified employee performs a physical 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 (including any Choice Refinance LoanChoice Refinance LoanMortgage Loan refinancing a Portfolio Mortgage Loan using streamlined underwriting per Part III, Chapter 18: Choice Refinance Loans. ) per Part II, Chapter 4: Inspections and Reserves, Section 401: Site Inspection and Lease Audit; and
- the physical inspection addresses special hazards, zoning, building and fire code violations, and regulatory compliance per the Instructions for Performing a Multifamily Property Condition Assessment (Form 4099).
The site inspection must provide your qualified employee with enough information to complete the MBAMBAMortgage Bankers Association Standard Inspection Form, including an:
- assessment of the current PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). condition;
- identification and cost estimate of any Immediate Repairs, which must be included in the appropriate Completion/Repair AgreementCompletion/Repair AgreementThe 4000 series Completion/Repair Security Agreement (Form 4505), or Fannie Mae-approved agreement, evidencing: the Borrower’s agreement to fund the Completion/Repair Escrow, and perform Completion/Repairs; and Completion/Repair Escrow disbursement terms. ; and
- estimate of anticipated replacement and major maintenance needs.
For any PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). consisting of multiple buildings, the site inspection must address the condition of all roofs, HVAC equipment, exterior façades, parking lots, exterior walkways, and balconies.
If a 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. has a term greater than 10 years, then you must ensure that a new site inspection is performed in the 10th year of the loan term.
The date of the site inspection must meet the timing requirements for a PCAPCAAssessment of the Property's physical condition and historical operation. in Part II, Chapter 4: Inspections and Reserves, Section 403: Property Condition Assessment (PCA).
You must not DeliverDeliverSubmission 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. any Small Mortgage LoanSmall Mortgage LoanMortgage Loan with an original loan amount less than or equal to $9 million. secured by a PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). that has:
- an overall rating on the MBAMBAMortgage Bankers Association Standard Inspection Form that does not comply with Part II, Chapter 4: Inspections and Reserves, Section 401: Site Inspection and Lease Audit; or
- deferred maintenance with repair costs greater than 10% of the UPBUPBUnpaid Principal Balance .
Guidance
You may retain a third-party inspector to determine if a PCAPCAAssessment of the Property's physical condition and historical operation.
- is required, or
- should be performed.
907.02 | |
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Requirements
You must ensure that the BorrowerBorrowerPerson who is the obligor per the Note. or the Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. :
- Conducts a physical inspection of 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). .
- Certifies in the Multifamily Underwriting Certificate (Form 6460) that the physical inspection has been performed.
907.03 | |
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Requirements
A PCAPCAAssessment of the Property's physical condition and historical operation. is required:
- if the site inspection
- notes structural or physical concerns, or
- results in an overall rating of 3 being reported on the Comp Assmt Addendum tab of the MBAMBAMortgage Bankers Association Standard Inspection Form; or
- when a Replacement ReserveReplacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. is required per Part III, Chapter 9: Small Mortgage Loans, Section 908: Replacement Reserve.
Guidance
For a required or optional PCAPCAAssessment of the Property's physical condition and historical operation. , you may use the Streamlined Property Condition Assessment Guidance (Form 4099.A), but the PCAPCAAssessment of the Property's physical condition and historical operation. must otherwise comply with Part II, Chapter 4: Inspections and Reserves, Section 403: Property Condition Assessment (PCA).