414.03

Casualty Loss Assessment

The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must assess the extent and impact of any damage caused by a casualty, and ensure that the BorrowerBorrowerPerson who is the obligor per the Note. appropriately addresses the damage.

Within 45 days after learning of a casualty loss, the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must document its Servicing FileServicing FileYour file for each Mortgage Loan serviced. with the results of its casualty loss assessment.  At a minimum, the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must include:

  • when the casualty loss occurred and when the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. was first informed of the casualty loss;
  • the scope of the damage and its effect on the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). (e.g., impact on the habitability of the buildings, safety of the residents, serious injury or loss of life, project occupancy, and project income and expenses);
  • the Borrower’sBorrower’sPerson who is the obligor per the Note. plan of action for securing and restoring the damaged portion of the PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). , and the status of the Borrower’sBorrower’sPerson who is the obligor per the Note. efforts to implement the plan, including the specific steps to be taken (e.g., temporarily relocating tenants, preparing plans and specifications, awarding contracts, and commencing repair work);
  • whether any environmental problems are associated with the damage, and if so, how they will be addressed;
  • the projected cost to repair and restore the damaged ImprovementsImprovementsBuildings, structures, improvements, and alterations, including the multifamily housing dwellings, now or hereafter constructed or placed on the Property, including all fixtures (as defined in the UCC). , including any available information on contractors’ bids or awards;
  • whether the casualty loss is covered by the Borrower’sBorrower’sPerson who is the obligor per the Note. insurance policy, the status of any insurance claim, and an estimate of the amount and timing of the funds to be received from the insurance carrier;
  • the estimated amount of additional funds that the BorrowerBorrowerPerson who is the obligor per the Note. will have to provide from its own resources to complete all necessary repair and restoration work, and the current availability of such funds; and
  • any other relevant information pertaining to the loss event that is known to the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. and could have a material bearing on Fannie Mae’s interests.