416.07

Credit Facility Revaluations

Credit FacilityCredit FacilityStructured Transaction governed by a Master Credit Facility Agreement requiring Mortgage Loans and Properties to be cross-defaulted, and cross-collateralized. revaluations may occur per the Master Credit Facility AgreementMaster Credit Facility AgreementAgreement evidencing the terms and conditions of a Credit Facility. .

The LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. must retain an AppraiserAppraiserPerson engaged to estimate a Property’s market value per USPAP. to obtain a Capitalization Rate DerivationCapitalization Rate DerivationIndependent determination of the appropriate capitalization rate for a specific Property. per Section 106 of the Instructions for Appraisers (Form 4827) if:

  • the PropertiesPropertiesMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). are being revalued with the intent to fund a new 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. ; or
  • no new 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. is being funded, but:
    • the previous valuation is more than 3 years old;
    • the Lender'sLender'sPerson Fannie Mae approved to sell or service Mortgage Loans. recommended capitalization rate is more than 50 bps less than the previously approved cap rate; or
    • required by Fannie Mae.

After Fannie Mae notifies the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. of the final capitalization rate determination and valuation, the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:

  • promptly notify the BorrowerBorrowerPerson who is the obligor per the Note. of the:
    • revised capitalization rates;
    • PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). values;
    •  Allocable Facility AmountsAllocable Facility AmountsFor a Credit Facility, the amount of debt allocated to a given Property, used in calculating tests for collateral activity such as releases, substitutions, and additions. ;
    •  LTVLTVRatio of the actual aggregate UPB of the Mortgage Loan, plus any Pre-Existing Mortgage Loans, plus any Hard Pay Preferred Equity, plus any Mezzanine Financing, to the value of the Property, expressed as a percentage.  ; and
    •  any failure to meet compliance tests, if applicable; and
  • retain a copy of the BorrowerBorrowerPerson who is the obligor per the Note. notification in the Servicing FileServicing FileYour file for each Mortgage Loan serviced. .