414.09A

Fannie Mae Determination Required

If any of the following conditions exist, Fannie Mae will determine, in its sole discretion, whether to require the insurance loss proceeds to be (i) applied to the UPBUPBUnpaid Principal Balance , or (ii) used to repair and restore 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). :

  • a default has occurred and is continuing under the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ;
  • the combination of insurance proceeds and BorrowerBorrowerPerson who is the obligor per the Note. funds is insufficient to complete the necessary PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). repairs for restoration to a condition fit for human habitation and meeting all applicable permitting requirements;
  • prior to the commencement of any restoration work, the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. determines that, upon completion of the repair and restoration work, 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). will not be capable of generating sufficient income to cover all operating expenses, required Replacement ReserveReplacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. deposits, P&IP&IPrincipal and interest on the 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. , and required payments on any subordinate debt secured by 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). , or will otherwise meet a DSCRDSCROn an annual basis or any specified period, the ratio of Net Cash Flow to the total of:  principal, interest, and required Mezzanine Financing or Hard Preferred Equity payments. or other test required by the Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ; or
  • the repair and restoration work will not be completed by the earlier of (i) the Maturity DateMaturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. , or (ii) within 1 year from the date of the casualty loss.