Chapter 1
| Section 101 | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must service 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. :
- with regard to Securitized Mortgage LoansSecuritized Mortgage LoansMortgage Loan backing an MBS, PFP MBS, or REMIC. , on behalf of Fannie Mae, in Fannie Mae’s corporate capacity and in Fannie Mae’s capacity as Trustee, for the benefit of and in the best interest of the InvestorInvestorMBS Investor for an MBS Mortgage Loan, or Fannie Mae for a Cash Mortgage Loan. in the SecuritySecurityMBS, PFP MBS, or REMIC. ;
- with regard to Credit Enhancement Mortgage LoansCredit Enhancement Mortgage LoansMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. , on behalf of Fannie Mae as the issuer of the Credit Enhancement InstrumentCredit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. ; and
- with regard to Cash Mortgage LoansCash Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for cash. , on behalf of Fannie Mae, in Fannie Mae’s corporate capacity.
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). 's servicing obligations continue until terminated by the terms of the GuideGuideMultifamily Selling and Servicing Guide and Delegated Underwriting and Servicing Guide, including any exhibits, appendices, or other referenced forms, as updated, amended, restated, modified, or supplemented by any lender memo; provided, however, if a topic is covered in the Multifamily Selling and…, and the Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. .
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must always act diligently to protect Fannie Mae's investment interests in the 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. . The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is expected to exercise prudent business judgment in all of its servicing and asset management activities, including those relating to matters for which Fannie Mae has not established specific requirements or standards. While this Part V delegates significant decision-making authority and responsibility to the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). , consultation with the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). ’s Fannie Mae RepresentativeFannie Mae RepresentativeFannie Mae personnel who assist you with various business matters (e.g., Fannie Mae Deal Team, pricing, delivery, servicing, asset management, etc.). is encouraged whenever matters arise that could materially affect Fannie Mae's investment interests. All requirements of this Part V are also applicable to any Sub-Servicer of 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. .
| Section 102 | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must service 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. in accordance with and, in the event of any conflict, in the following order of priority:
- the applicable Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. ;
- the Lender ContractLender ContractProgram Documents per the Mortgage Selling and Servicing Agreement. ;
- the GuideGuideMultifamily Selling and Servicing Guide and Delegated Underwriting and Servicing Guide, including any exhibits, appendices, or other referenced forms, as updated, amended, restated, modified, or supplemented by any lender memo; provided, however, if a topic is covered in the Multifamily Selling and…; and
- commercially prudent servicing practices and sound business judgment as would be exercised by prudent institutional mortgage lenders and servicers servicing mortgage loans comparable to the 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. in the jurisdictions where the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). is located.
| Section 103 | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must maintain a separate Servicing FileServicing FileFile for each Mortgage Loan serviced by the Lender. for each 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. . The Servicing FileServicing FileFile for each Mortgage Loan serviced by the Lender. may be maintained in paper or electronic imaged form so long as all requirements for record retention provided in the Program Rules are met. The Servicing FileServicing FileFile for each Mortgage Loan serviced by the Lender. for each 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. must include copies of any document relevant to 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. as provided in Servicing File Content Requirements (Form 4800).
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must carefully document the actions it takes with respect to each 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. in the Servicing FileServicing FileFile for each Mortgage Loan serviced by the Lender. . The Servicing FilesServicing FilesFile for each Mortgage Loan serviced by the Lender. will be examined as part of Fannie Mae’s periodic assessment of the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). .
| Section 104 | |
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For each 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. that it services, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is responsible for monitoring the BorrowerBorrowerPerson who is the obligor under the Note.’s compliance with the terms and conditions of all Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. , and for taking such actions as are appropriate to facilitate the BorrowerBorrowerPerson who is the obligor under the Note.’s compliance or address any instance of noncompliance.
In the event of any conflict among the requirements of the Lender ContractLender ContractProgram Documents per the Mortgage Selling and Servicing Agreement. , the GuideGuideMultifamily Selling and Servicing Guide and Delegated Underwriting and Servicing Guide, including any exhibits, appendices, or other referenced forms, as updated, amended, restated, modified, or supplemented by any lender memo; provided, however, if a topic is covered in the Multifamily Selling and…, or the provisions of any Loan DocumentLoan DocumentAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. , the provisions of the Loan DocumentLoan DocumentAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. shall control.
| Section 105 | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must:
- retain in the Servicing FileServicing FileFile for each Mortgage Loan serviced by the Lender. a file-stamped copy of all applicable UCCUCCUniform Commercial Code financing statements, continuations, renewals, and assignments (UCCUCCUniform Commercial Code -1s and UCCUCCUniform Commercial Code -3s) filed in connection with the Personal PropertyPersonal PropertyFurniture, fixtures, equipment, and other tangible personal property located on or used in connection with the Property. securing 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. ;
- preserve, on a continuous basis, Fannie Mae's first LienLienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. security interest in the Personal PropertyPersonal PropertyFurniture, fixtures, equipment, and other tangible personal property located on or used in connection with the Property. by ensuring that all necessary UCCUCCUniform Commercial Code financing statement renewal or continuation statements are filed on a timely basis (i.e., before the date on which any outstanding filing lapses, or by any earlier deadline for filing that may be applicable in the particular jurisdiction); and
- maintain an effective "tickler" system for tracking the UCCUCCUniform Commercial Code financing statement renewal or continuation filing deadlines applicable to all of the 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. it services for Fannie Mae.
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is liable for any losses incurred by Fannie Mae due to the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). 's failure to effect a timely renewal or continuation of a UCCUCCUniform Commercial Code financing statement.
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is hereby authorized and required to file in all appropriate jurisdictions all required UCCUCCUniform Commercial Code renewal or continuation financing statements on Fannie Mae's behalf as servicer of 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. . The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is also authorized and required to file amendments to the UCCUCCUniform Commercial Code financing statements required to correct any scrivener’s error. Unless specific authority is granted by Fannie Mae to serve as Fannie Mae’s attorney-in-fact pursuant to a Limited Power of AttorneyLimited Power of AttorneyLegal document authorizing a Servicer to execute certain Loan Documents related to the asset management of a Mortgage Loan as attorney-in-fact on behalf of Fannie Mae. (as described in Part V, Chapter 4: Asset Management: Loan Document Administration, Section 403: Execution of Documents by Servicer – Limited Power of Attorney), the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is not authorized to sign or file any amendment to a UCCUCCUniform Commercial Code financing statement (other than an amendment to correct a scrivener’s error) or termination of any UCCUCCUniform Commercial Code financing statement.
| 106.01 | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must retain a copy of the executed Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. , and the associated Achievement AgreementAchievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. in its Servicing FileServicing FileFile for each Mortgage Loan serviced by the Lender. . Fannie Mae will hold the original Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. and any amendments thereto.
| 106.02 | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must submit a Letter of Credit Authorization and Certification Form (Form 4664) with any new or replacement Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. , and must otherwise comply with the provisions of Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit.
Any new, replacement, or amended Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. sent to the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). rather than to Fannie Mae must be forwarded to Fannie Mae immediately.
While the Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. is outstanding, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must monitor the rating of the Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. issuer as required in Part I, Chapter 2: Mortgage Loan, Section 204.03: Verifying Issuer Ratings, and notify Multifamily Business OperationsMultifamily Business OperationsTeam that can be contacted at [email protected] whenever the issuer ceases to meet the required rating, regardless of whether the Achievement AgreementAchievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. provides issuer rating acceptability or gives Fannie Mae the right to take any action in the event of a rating drop.
Each time the issuer’s rating is verified, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must document the current rating in its Servicing FileServicing FileFile for each Mortgage Loan serviced by the Lender. .
If the Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. issuer fails to meet the rating standards prescribed by the Achievement AgreementAchievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. , other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. , or the GuideGuideMultifamily Selling and Servicing Guide and Delegated Underwriting and Servicing Guide, including any exhibits, appendices, or other referenced forms, as updated, amended, restated, modified, or supplemented by any lender memo; provided, however, if a topic is covered in the Multifamily Selling and… (if not specified in the Achievement AgreementAchievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. ), the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must:
- immediately notify Multifamily Business OperationsMultifamily Business OperationsTeam that can be contacted at [email protected] ; and
- send written notification to the BorrowerBorrowerPerson who is the obligor under the Note. to furnish a replacement or confirming Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. from an acceptably rated institution by the replacement deadline specified in the applicable Achievement AgreementAchievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. , or if not specified, by the earlier of 30 days after the date of such notice, or 5 Business DaysBusiness DaysAny day other than a Saturday, Sunday, day on which Fannie Mae is closed, day on which the Federal Reserve Bank of New York is closed, or for any MBS and any required withdrawal for remittance thereunder, a day on which the Federal Reserve Bank is closed in the district where any… prior to the Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. ’s expiration date.
| 106.07 | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must effectively monitor the expiration date of any Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. to ensure that Fannie Mae receives an acceptable renewal or replacement Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. by the deadline specified in the Achievement AgreementAchievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. , or if not specified, by at least 5 Business DaysBusiness DaysAny day other than a Saturday, Sunday, day on which Fannie Mae is closed, day on which the Federal Reserve Bank of New York is closed, or for any MBS and any required withdrawal for remittance thereunder, a day on which the Federal Reserve Bank is closed in the district where any… prior to the Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. ’s expiration date. Failure to provide a substitute or renewal Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. will result in Fannie Mae’s presentment of a sight draft against the expiring Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. .
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must promptly notify Multifamily Asset ManagementMultifamily Asset ManagementTeam that can be contacted at [email protected] and Multifamily Business OperationsMultifamily Business OperationsTeam that can be contacted at [email protected] whenever a draw on a Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. may be warranted. If Fannie Mae determines that a draw should be made, Fannie Mae will present a sight draft, signed by Fannie Mae (as beneficiary) to the issuer and arrange to have the cash proceeds wired to a designated Fannie Mae account.
Unless requested in connection with 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. being repaid in full, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is responsible for:
- assessing any BorrowerBorrowerPerson who is the obligor under the Note. request for a full release or partial reduction of the Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. or other collateral held by Fannie Mae or the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). in accordance with the terms and conditions of the applicable Achievement AgreementAchievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. ;
- sending a recommended course of action to Multifamily Asset ManagementMultifamily Asset ManagementTeam that can be contacted at [email protected] ; and
- providing written notification to the BorrowerBorrowerPerson who is the obligor under the Note. of the approval or denial of each request.
Any replacement Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. must have an expiration date that is at least 30 days past the expiration of the applicable Achievement AgreementAchievement AgreementAgreement requiring the Borrower to provide a letter of credit, cash, or guaranty as additional collateral to support the Mortgage Loan amount and specifying the terms for releasing the collateral. or other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. .
| 107.01 | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must monitor Borrower'sBorrower'sPerson who is the obligor under the Note. compliance with any Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. , and the other Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. and BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. Documents. For example, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must monitor financial information required to be provided by the BorrowerBorrowerPerson who is the obligor under the Note. or any other PersonPersonLegal person, including an individual, estate, trust, corporation, partnership, limited liability company, financial institution, joint venture, association, or other organization or entity (whether governmental or private). under the Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. .
| 107.01B | |
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1. Collection from Borrower
In addition to invoicing and collecting from the BorrowerBorrowerPerson who is the obligor under the Note. the BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. Scheduled PaymentsScheduled PaymentsBond Credit Enhancements, see Part XIV of the DUS Guide. (or P&IP&IPrincipal and interest payment on any Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. ), and other amounts owing, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is responsible for collecting all payments due from the BorrowerBorrowerPerson who is the obligor under the Note. in accordance with the terms and conditions of the Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. , Loan Agreement, and other Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. , including the following:
- reimbursement of all amounts disbursed by Fannie Mae under either:
- its Credit Enhancement InstrumentCredit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or its MBSMBSMortgage-Backed Security issued as Credit Enhancement; and
- the Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. evidencing or securing the Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. or any other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. for the BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. ;
- the Facility FeeFacility FeeFor Bond Credit Enhancements, per Part XIV of the DUS Guide. and the Activity FeeActivity FeeFor Bond Credit Enhancements, see Part XIV of the DUS Guide. ;
- all amounts required to be paid by BorrowerBorrowerPerson who is the obligor under the Note. to fully replenish the PRFPRFPrincipal Reserve Fund for Bond Credit Enhancements, see Part XIV of the DUS Guide. following any use of funds in the PRFPRFPrincipal Reserve Fund for Bond Credit Enhancements, see Part XIV of the DUS Guide. by the Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. ;
- any Prepayment PremiumPrepayment PremiumWhen a Mortgage Loan prepayment is made, amount required to be paid by the Borrower in addition to the principal amount being prepaid and accrued interest per the related Loan Documents. or other Termination Fee payable by the BorrowerBorrowerPerson who is the obligor under the Note. with the prepayment of a Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. ; and
- any other fees, expenses, or reimbursements required to be made by the BorrowerBorrowerPerson who is the obligor under the Note. under the Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. .
2. Calculate Amounts Owing
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must immediately invoice the BorrowerBorrowerPerson who is the obligor under the Note. upon receipt from Fannie Mae of the information the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). requires to calculate amounts owing from the BorrowerBorrowerPerson who is the obligor under the Note. under the Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. or any other Loan Agreement evidencing or securing the Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. . Upon receipt from the BorrowerBorrowerPerson who is the obligor under the Note., the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must remit the funds to the appropriate parties in accordance with the timing and terms of the Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. or the applicable Loan DocumentLoan DocumentAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. .
3. Notification of Fannie Mae Advanced Funds
Fannie Mae will notify the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). on or after each date on which Fannie Mae disburses funds, of the amount disbursed, under any:
- Credit Enhancement InstrumentCredit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. ;
- Loan DocumentLoan DocumentAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. evidencing or securing a Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. or any other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. for BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. ; or
- Credit Enhancement for any Interest Rate HedgeInterest Rate HedgeInterest rate agreement between the Borrower and a hedge provider for which the Borrower receives payments at the end of each period when the interest rate exceeds the Cap Strike Rate. The Interest Rate Cap provides a ceiling (or cap) on the Borrower’s interest payments on the Mortgage Loan. , including any Swap Collateral Agreement, Interest Rate Swap Credit Enhancement Instrument, or Interest Rate Swap Credit Support Annex.
4. Collection from Borrower of Fannie Mae Advanced Funds
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must collect from the BorrowerBorrowerPerson who is the obligor under the Note. and immediately remit to Fannie Mae funds equal to:
- the amount provided by Fannie Mae in connection with any Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. or any Credit Enhancement for an Interest Rate HedgeInterest Rate HedgeInterest rate agreement between the Borrower and a hedge provider for which the Borrower receives payments at the end of each period when the interest rate exceeds the Cap Strike Rate. The Interest Rate Cap provides a ceiling (or cap) on the Borrower’s interest payments on the Mortgage Loan. ; and/or
- the Activity FeeActivity FeeFor Bond Credit Enhancements, see Part XIV of the DUS Guide. with respect to the related Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. , to the extent that the BorrowerBorrowerPerson who is the obligor under the Note. does not fully reimburse Fannie Mae by 2:00 p.m. Eastern Time, on the date on which Fannie Mae provided the funds in connection with such Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. or such Credit Enhancement for an Interest Rate HedgeInterest Rate HedgeInterest rate agreement between the Borrower and a hedge provider for which the Borrower receives payments at the end of each period when the interest rate exceeds the Cap Strike Rate. The Interest Rate Cap provides a ceiling (or cap) on the Borrower’s interest payments on the Mortgage Loan. .
| 107.01C | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must collect from the BorrowerBorrowerPerson who is the obligor under the Note. and remit to Fannie Mae:
- any other fees, expenses, or additional costs due from the BorrowerBorrowerPerson who is the obligor under the Note. to Fannie Mae under each Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. , each Security InstrumentSecurity InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the obligations under the Loan Documents. , the Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. , or any other Loan DocumentLoan DocumentAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. ; and
- any other amounts due pursuant to written communication from Fannie Mae or the Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. .
| 107.01D | |
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When the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). receives payment from the BorrowerBorrowerPerson who is the obligor under the Note. with respect to the Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. , Loan Agreement, or any Loan DocumentLoan DocumentAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. , the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must remit such payment as directed by Fannie Mae.
If payment is not provided to Fannie Mae or the Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. until the next Business DayBusiness DayAny day other than a Saturday, Sunday, day on which Fannie Mae is closed, day on which the Federal Reserve Bank of New York is closed, or for any MBS and any required withdrawal for remittance thereunder, a day on which the Federal Reserve Bank is closed in the district where any…, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must invest the funds overnight and remit all investment earnings to Fannie Mae or the Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. with the payment; provided, however, that the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). is only required to use its best efforts to so invest any payments received after 4:00 p.m. Eastern Time.
| 107.01E | |
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For each Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. , the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must monitor the PRFPRFPrincipal Reserve Fund for Bond Credit Enhancements, see Part XIV of the DUS Guide. amount and the Interest Reserve RequirementInterest Reserve RequirementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. , if any, under the BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. Indenture.
Notwithstanding any provision in the Reimbursement AgreementReimbursement AgreementFor Bond Credit Enhancements, see Part XIV of the DUS Guide. , Loan Agreement, or any other Loan DocumentLoan DocumentAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. , no withdrawal from a PRFPRFPrincipal Reserve Fund for Bond Credit Enhancements, see Part XIV of the DUS Guide. may be made without the prior written consent of Fannie Mae.
If any withdrawal is made from the PRFPRFPrincipal Reserve Fund for Bond Credit Enhancements, see Part XIV of the DUS Guide. , including any reimbursement to Fannie Mae for amounts paid by Fannie Mae under the Credit Enhancement InstrumentCredit Enhancement InstrumentAgreement between Fannie Mae and a Bond Trustee where Fannie Mae provides credit enhancement of a Credit Enhancement Mortgage Loan, Bonds issued to finance a Credit Enhancement Mortgage Loan, or an Interest Rate Hedge Agreement; and if applicable, a Bond liquidity facility. or Credit Enhancement Mortgage LoanCredit Enhancement Mortgage LoanMortgage Loan underwritten and serviced by the Lender and financed by the issuance of Bonds where Fannie Mae is providing a Credit Enhancement Instrument. Documents, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must collect the amount of such withdrawal from the BorrowerBorrowerPerson who is the obligor under the Note..
| 107.02A | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must monitor the Borrower'sBorrower'sPerson who is the obligor under the Note. continued compliance with the requirements of the Security InstrumentSecurity InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the obligations under the Loan Documents. and any other Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. .
| 107.02B | |
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Upon request, the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must notify Fannie Mae regarding the status of the investment of the cash collateral posted under any Collateral AgreementCollateral AgreementAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. . The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must monitor and ensure that any control agreement required to perfect Fannie Mae’s security interest in such pledged collateral remains in full force and effect.
| 107.02C | |
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The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must perform reasonable servicing functions, as directed by Fannie Mae, with respect to any Security Agreement. The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). acknowledges and agrees, however, that the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). has no discretion to direct investment, application, or release of the collateral under any Security Agreement except upon express written authorization and direction from Fannie Mae.
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must monitor and ensure that all UCCUCCUniform Commercial Code filings for Fannie Mae in connection with Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. or related BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. Documents are continued, prior to their expiration, in accordance with the requirements of the jurisdiction in which they are filed.
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must provide each Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. with written notice of the need to file continuation statements for all UCCUCCUniform Commercial Code filings for the Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. for the benefit of Fannie Mae no later than 90 days prior to the expiration of the UCCUCCUniform Commercial Code filings, and must actively, diligently, and persistently seek to obtain confirmation from each Bond TrusteeBond TrusteeTrustee for a Credit Enhancement Instrument. that the requisite continuation statements have been filed prior to the expiration of the UCCUCCUniform Commercial Code filings.
| 107.03 | |
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Fannie Mae must approve any change in the Remarketing AgentRemarketing AgentFor Bond Credit Enhancements, see Part XIV of the DUS Guide. if Fannie Mae is providing Bond Liquidity support for an existing variable rate BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. or for index or reset rate BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. subject to remarketing on certain scheduled mandatory tender and remarketing dates.
To request approval of a new Remarketing AgentRemarketing AgentFor Bond Credit Enhancements, see Part XIV of the DUS Guide. , the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. must submit to Partner Risk ManagementPartner Risk ManagementTeam that can be contacted at [email protected] and Multifamily Asset ManagementMultifamily Asset ManagementTeam that can be contacted at [email protected] the following information regarding the proposed Remarketing AgentRemarketing AgentFor Bond Credit Enhancements, see Part XIV of the DUS Guide. :
- annual financial statements for the most recent fiscal year;
- description of the operation, knowledge, and experience in public finance and tax-exempt markets, including experience in remarketing variable-rate demand BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. ;
- current weekly variable-rate demand BondBondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. remarketing book, including dollar amount; and
- description of any failed remarketings.
The proposed Remarketing AgentRemarketing AgentFor Bond Credit Enhancements, see Part XIV of the DUS Guide. should:
- currently remarket at least $250 million of weekly variable-rate demand BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. ;
- have experience continuously remarketing weekly variable-rate demand BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. for the past 3 years;
- have a minimum net worth of $5 million; and
- have a minimum broker line of credit sufficient for warehousing $100 million of rated BondsBondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. at any time.