Section 1804
| 1804.01 | |
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Requirements
You must perform a non-conforming use analysis and comply with the requirements of Part II, Chapter 3: Legal Compliance, Section 301: Zoning and Legal Non-Conforming Uses if the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). has been rezoned since the Mortgage Loan Origination DateMortgage Loan Origination DateDate the Lender funds a Mortgage Loan to the Borrower. of the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan that was purchased by Fannie Mae and is held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan.
- causing the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). to become a non-conforming use, or
- further restricting the ability of an existing non-conforming use to be rebuilt.
Guidance
You may use the Streamlined Physical Condition Assessment Requirements (Form 4099.A).
| 1804.03 | |
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Requirements
A Phase I Environmental Site AssessmentPhase I Environmental Site AssessmentEnvironmental report and site assessment performed according to the process described in current ASTM E 1527, including any report summarizing the conclusions of the assessment. is not required if:
- the BorrowerBorrowerPerson who is the obligor under the Note. enters into an Environmental Indemnity Agreement (Form 6085);
- you perform an environmental database search per the Instructions for Performing a Multifamily Property Condition Assessment – Environmental Matters (Form 4251), and determine that there are no adverse conditions requiring further due diligence; and
- you confirm that the BorrowerBorrowerPerson who is the obligor under the Note. is appropriately implementing any existing O&M PlansO&M PlansWritten plan, document, or agreement containing ongoing operating, maintenance, or monitoring actions for the Property or its Improvements. for the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). .
| 1804.04 | |
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Requirements
Part II, Chapter 3: Legal Compliance, Section 305: Survey does not apply if the:
- new mortgagee title insurance policy includes all title exceptions, including those that would appear based upon the most recent survey provided by the BorrowerBorrowerPerson who is the obligor under the Note. (whether it is the original survey for the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan that was purchased by Fannie Mae and is held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. or a subsequent one);
- BorrowerBorrowerPerson who is the obligor under the Note. certifies that there have been no changes or improvements to the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code).
since the later of the date of the survey
- referenced in the original title policy, or
- most recently completed; and
- PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). inspection report reveals no evidence of new construction or encroachments on the site from construction on adjoining properties.
Requirements
You must:
- Obtain a new Multifamily Underwriting CertificateMultifamily Underwriting CertificateMultifamily Underwriting Certificate (Form 6460 series), and/or other agreement approved by Fannie Mae that provides underwriting information for a Mortgage Loan. (Form 6460) from the BorrowerBorrowerPerson who is the obligor under the Note., any GuarantorGuarantorKey Principal or other Person who executes a Payment Guaranty, a Non-Recourse Guaranty, or any other guaranty in connection with the Mortgage Loan. , and any Key PrincipalKey PrincipalPerson(s) who control and/or manage the Borrower or the Property, are critical to the successful operation and management of the Borrower and the Property, and who may be required to provide a Guaranty. .
- Obtain updated copies of the organizational documents of the BorrowerBorrowerPerson who is the obligor under the Note. and the Key PrincipalKey PrincipalPerson(s) who control and/or manage the Borrower or the Property, are critical to the successful operation and management of the Borrower and the Property, and who may be required to provide a Guaranty. , and confirm that the BorrowerBorrowerPerson who is the obligor under the Note.’s organizational structure complies with Part II, Chapter 3: Legal Compliance.
- Confirm that no unauthorized change has been made to the BorrowerBorrowerPerson who is the obligor under the Note.’s organizational structure or documents.
- Obtain a new good standing certificate from the jurisdiction where the BorrowerBorrowerPerson who is the obligor under the Note. is organized.
| 1804.06 | |
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Requirements
You must obtain and review new financial statements for all parties relevant to the transaction.
For Small Mortgage LoansSmall Mortgage LoansMortgage Loan with an original loan amount less than or equal to $6 million and underwritten per Part III: Products and Features, Chapter 9. , you must:
- confirm that the FICO scores of any such individuals comply with Part III, Chapter 9: Small Mortgage Loans, Section 911.02: FICO Scoring; and
- ensure that the net worth and liquidity complies with Part III, Chapter 9: Small Mortgage Loans, Section 910.06: Net Worth and Liquid Assets.
Guidance
If the BorrowerBorrowerPerson who is the obligor under the Note. or any Key PrincipalKey PrincipalPerson(s) who control and/or manage the Borrower or the Property, are critical to the successful operation and management of the Borrower and the Property, and who may be required to provide a Guaranty. , GuarantorGuarantorKey Principal or other Person who executes a Payment Guaranty, a Non-Recourse Guaranty, or any other guaranty in connection with the Mortgage Loan. , or PrincipalPrincipalPerson who owns or controls specified interests in the Borrower per Part I: Mortgage Loan, Section 303. submitted financial statements within the past 12 months, then in lieu of new financial statements, you may accept a certification that there has been no material adverse change from the financial condition or credit standing reflected in the financial statements.
| 1804.07 | |
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Guidance
You may elect not to review the PropertyPropertyMultifamily residential property securing the Mortgage Loan and including the land (or Leasehold interest in land), Improvements, and personal property (as defined in the Uniform Commercial Code). management or agreement per Part II, Chapter 1: Attributes and Characteristics, Section 108: Property Management and Agreement.
| 1804.08 | |
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Requirements
You must ensure the Replacement ReserveReplacement ReserveCustodial Account established by the Lender and funded by deposits from the Borrower over the term of the Mortgage Loan to fund the replacement of capital items at the Property. is funded as follows:
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The Property
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The BorrowerBorrowerPerson who is the obligor under the Note. must fully fund the Replacement ReserveReplacement ReserveCustodial Account established by the Lender and funded by deposits from the Borrower over the term of the Mortgage Loan to fund the replacement of capital items at the Property. . |
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The Property
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You must determine the Replacement ReserveReplacement ReserveCustodial Account established by the Lender and funded by deposits from the Borrower over the term of the Mortgage Loan to fund the replacement of capital items at the Property. funding per Part II, Chapter 4: Inspections and Reserves, Section 404: Replacement Reserve.
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The Property is located in
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You must determine the Replacement ReserveReplacement ReserveCustodial Account established by the Lender and funded by deposits from the Borrower over the term of the Mortgage Loan to fund the replacement of capital items at the Property. funding per Part II, Chapter 4: Inspections and Reserves, Section 404: Replacement Reserve. |
Requirements
You must require T&IT&ITaxes or assessments that may become a Lien on the Property and insurance premiums. escrow deposits for a Tier 2 Choice Refinance LoanChoice Refinance LoanMortgage Loan refinancing a Portfolio Mortgage Loan using the streamlined underwriting requirement per Part III: Products and Features, Chapter 18. unless Fannie Mae waived the T&IT&ITaxes or assessments that may become a Lien on the Property and insurance premiums. escrow for the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan that was purchased by Fannie Mae and is held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. . If you do not require T&IT&ITaxes or assessments that may become a Lien on the Property and insurance premiums. escrow deposits, then you must comply with Part II, Chapter 4: Inspections and Reserves, Section 405: Escrow Requirements for Taxes and Insurance.