Default under Completion/Repair Agreement
1. Notification of Default to Fannie Mae
The ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g., the originator, the selling Lender, or a third-party servicer). must immediately notify Fannie Mae of any default under the Completion/Repair AgreementCompletion/Repair AgreementDocument evidencing the Borrower’s agreement to undertake Completion/Repairs and other identified capital improvements, the terms for funding the repairs, maintenance, or capital items, and the disbursement of funds from the Completion/Repair Escrow (e.g., Form 4505, or the applicable parts of the… in accordance with the requirements of Part V, Chapter 7: Non-Performing Mortgage Loans.
2. No Release of Funds to Borrower
No funds may be released to the BorrowerBorrowerPerson who is the obligor under the Note. while the BorrowerBorrowerPerson who is the obligor under the Note. is in default under any of the Loan DocumentsLoan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. .