710.02

Fannie Mae Credit-Enhanced Tax-Exempt Bond Issuance

Requirements

You must confirm that 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., it does not also own or intend to acquire a direct equity interest in the BorrowerBorrowerPerson who is the obligor under the Note..

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

  • Fannie Mae’s indirect equity interest in the BorrowerBorrowerPerson who is the obligor under the Note. is less than 50%;
  • in the case of an LIHTCLIHTCFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. transaction:
    • the IRS documentation filed in connection with 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. issuance shows that none of 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. proceeds were applied to pay any portion of Fannie Mae’s credit enhancement fee;
    • 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 under the Note. have either
      • entered into an LIHTCLIHTCFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. agreement that acknowledges Fannie Mae’s equity interest, or
      • consented in writing to Fannie Mae’s equity interest; and
    • any required notices to the BorrowerBorrowerPerson who is the obligor under the Note. and the issuer under an LIHTCLIHTCFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. agreement have been provided; and
  • in the case of a non-LIHTCLIHTCFederal program offering tax credits to owners of eligible properties that contain low-income occupants and rent restrictions. transaction, the issuer and the BorrowerBorrowerPerson who is the obligor under the Note. have consented in writing to Fannie Mae’s equity interest.