Lender’s Responsibilities

Requirements

You must:

• Obtain all investigations recommended or indicated by the Phase I ESAPhase I ESAEnvironmental report and site assessment performed according to the process described in current ASTM E 1527, including any report summarizing the conclusions of the assessment. .
• Conduct a thorough review and analysis of the Phase I ESAPhase I ESAEnvironmental report and site assessment performed according to the process described in current ASTM E 1527, including any report summarizing the conclusions of the assessment. .
• Provide the Environmental Professional with all available prior Phase I ESAsPhase I ESAsEnvironmental report and site assessment performed according to the process described in current ASTM E 1527, including any report summarizing the conclusions of the assessment. , investigations, and any relevant and readily available environmental materials.
• Provide the appraiser with any documentation from the Phase I ESAPhase I ESAEnvironmental report and site assessment performed according to the process described in current ASTM E 1527, including any report summarizing the conclusions of the assessment. that is necessary to accurately assess the value of 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). .
• Identify whether the state 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 has an environmental “super-lien” statute and, if so, confirm that conditions on 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). are not likely to result in the imposition of such a LienLienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. .
• Disclose to Fannie Mae your knowledge of any actual or suspected environmental conditions affecting 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). , whether or not disclosed in the Phase I ESAPhase I ESAEnvironmental report and site assessment performed according to the process described in current ASTM E 1527, including any report summarizing the conclusions of the assessment. .
• Ensure that any required Operations and Maintenance Plans (O&M Plans) are obtained and located on the site throughout the loan term.
• Assess the BorrowerBorrowerPerson who is the obligor per the Note. ’s ability to carry out any O&M PlanO&M PlanWritten plan, document, or agreement containing ongoing operating, maintenance, or monitoring actions for the Property or its Improvements. .  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. is ineligible for purchase if the BorrowerBorrowerPerson who is the obligor per the Note. or its agents are not financially or organizationally capable of satisfying the requirements of the O&M PlanO&M PlanWritten plan, document, or agreement containing ongoing operating, maintenance, or monitoring actions for the Property or its Improvements. .
• Evaluate the potential risk of loss and liability to 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). , the BorrowerBorrowerPerson who is the obligor per the Note. , you, or Fannie Mae posed by any
  • REC/CREC,
  • Business Environmental RiskBusiness Environmental RiskRisk of material environmental or environmentally-driven impact on the business or property associated with a Property or the past, current or planned use of a Property, including all “non-scope considerations” under current ASTM E 1527, asbestos or asbestos-containing materials, radon, lead-based…, or
  • other environmental condition, whether or not disclosed in the Phase I ESAPhase I ESAEnvironmental report and site assessment performed according to the process described in current ASTM E 1527, including any report summarizing the conclusions of the assessment. .

If you become aware of any REC/CREC, you must:

• Obtain a Remediation Plan from the BorrowerBorrowerPerson who is the obligor per the Note. that
  • is prepared by an Environmental Professional, as required by Form 4251,
  • will protect the health and safety of the residents and bring 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). into regulatory compliance, and
  • includes a cost estimate and schedule for completing the work.
• Add the estimated cost of the Remediation Plan to the Completion/Repair EscrowCompletion/Repair EscrowCustodial Account established by the Lender and initially funded by an escrow deposit from the Borrower on the Mortgage Loan Origination Date to complete Completion/Repairs or other capital improvements at the Property. requirement of the Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. .