Section 710
Requirements
If a Mortgage Loan Mortgage 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. will be funded with tax-exempt bond proceeds and the Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). qualifies for LIHTCs LIHTCsFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. , you must confirm if Fannie Mae owns or intends to acquire:
- a direct or indirect equity interest in the Borrower BorrowerPerson who is the obligor per the Note. , in which case, Fannie Mae cannot also own or intend to acquire an interest in the tax-exempt Bonds BondsTax-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
- an interest in the tax-exempt Bonds BondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. , in which case, Fannie Mae cannot also own or intend to acquire a direct or indirect equity interest in the Borrower BorrowerPerson who is the obligor per the Note. .
Requirements
If Fannie Mae credit enhances tax-exempt Bonds BondsTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. issued to fund a Mortgage Loan Mortgage 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. , you must confirm Fannie Mae does not also own or intend to acquire a direct equity interest in the Borrower BorrowerPerson who is the obligor per the Note. .
If Fannie Mae owns or intends to acquire an indirect equity interest in the Borrower BorrowerPerson who is the obligor per the Note. through a fund, you must:
- immediately notify the Fannie Mae Deal Team Fannie Mae Deal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. ; and
- confirm
- Fannie Mae’s indirect equity interest in the Borrower BorrowerPerson who is the obligor per the Note. is less than 50%,
- the Bond BondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. issuer and the Borrower BorrowerPerson who is the obligor per the Note. have consented in writing to Fannie Mae’s equity interest, and
- for any LIHTC LIHTCFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. transaction, the Bond BondTax-exempt or taxable multifamily revenue bonds, or other tax-exempt or taxable bonds, issued to finance 1 or more Credit Enhancement Mortgage Loan Properties. issuer and the Borrower BorrowerPerson who is the obligor per the Note. have notified bond counsel of Fannie Mae’s equity interest.