Release/Reduction of Letter of Credit or Other Collateral
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.