710.02

Fannie Mae Credit-Enhanced Tax-Exempt Bond Issuance

Requirements

If Fannie Mae credit enhances tax-exempt 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. issued to fund 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. , you must confirm Fannie Mae does not also own or intend to acquire a direct equity interest in the BorrowerBorrowerPerson who is the obligor per the Note. .

If Fannie Mae owns or intends to acquire an indirect equity interest in the BorrowerBorrowerPerson who is the obligor per the Note. through a fund, you must:

  • immediately notify the Fannie Mae Deal TeamFannie Mae Deal TeamTeam responsible for reviewing Pre-Review Mortgage Loans, waivers, etc. ; and
  • confirm
    • Fannie Mae’s indirect equity interest in the BorrowerBorrowerPerson who is the obligor per the Note. is less than 50%,
    • 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. issuer and the BorrowerBorrowerPerson who is the obligor per the Note. have consented in writing to Fannie Mae’s equity interest, and
    • for any LIHTCLIHTCFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. transaction, 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. issuer and the BorrowerBorrowerPerson who is the obligor per the Note. have notified bond counsel of Fannie Mae’s equity interest.