702.02C

Deemed Exhaustion of Recourse Obligation

When the cumulative approved realized losses plus Potential Losses under a Secondary RiskSecondary RiskMortgage Loan where the Lender bears all losses until the Lender’s recourse obligations are exhausted. Lender ContractLender ContractProgram Documents per the Multifamily Selling and Servicing Agreement. equal or exceed 90% of the Lender'sLender'sPerson Fannie Mae approved to sell or service Mortgage Loans. recourse obligation under that ContractContractProgram Documents per the Multifamily Selling and Servicing Agreement. , the LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. ’s recourse obligation under the ContractContractProgram Documents per the Multifamily Selling and Servicing Agreement. will be deemed to be exhausted and the remaining Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. serviced under that ContractContractProgram Documents per the Multifamily Selling and Servicing Agreement. will be deemed to be Primary Risk Mortgage LoansPrimary Risk Mortgage LoansMortgage Loan where Fannie Mae bears all losses or where the Lender and Fannie Mae share losses. .  Fannie Mae will provide notice in writing to the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. at the time of such re-designation.  Re-designation of a 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. from Secondary RiskSecondary RiskMortgage Loan where the Lender bears all losses until the Lender’s recourse obligations are exhausted. to Primary RiskPrimary RiskMortgage Loan where Fannie Mae bears all losses or where the Lender and Fannie Mae share losses. does not relieve the LenderLenderPerson Fannie Mae approved to sell or service Mortgage Loans. of its remaining recourse obligation.

Fannie Mae's estimate of Potential Losses will be calculated as follows:

  • the value of each PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). (as provided below) securing all then-delinquent Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. , less
  • the UPBUPBUnpaid Principal Balance  of all then-delinquent Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. , plus
  • estimated expenses to pursue a foreclosure Course of ActionCourse of ActionFor Non-Performing Mortgage Loans, loss mitigation activities per per Part V, Chapter 7: Non-Performing Mortgage Loans. for all then-delinquent Mortgage LoansMortgage LoansMortgage debt obligation evidenced, or when made will be evidenced, by the Loan Documents, or  a mortgage debt obligation with a Fannie Mae credit enhancement. . 

The value 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). shall be calculated as follows:

  • 90% 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). value of each PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). securing each such delinquent 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. if the value is established by an appraisal or broker’s opinion of value dated six (6) months or less prior to incurring the Potential Loss, or
  • 60% of the most recent PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). value of each PropertyPropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). securing each such delinquent 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. if the value is established by an appraisal or broker’s opinion of value dated more than six (6) months prior to incurring the Potential Loss.