Lender Tenders for Minor or Immaterial Defaults

1.  Primary Risk Mortgage Loans

In some instances, for minor or relatively immaterial defaults (like materialmen and mechanics' liens) on 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 elect to tender the Performance DefaultPerformance DefaultFailure of a Borrower to perform any promise or covenant within any applicable grace periods under the related Mortgage Loan other than a failure that constitutes a Payment Default. to the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. to monitor, engage legal counsel as necessary, and otherwise protect Fannie Mae's security interest in 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). .  These "Lender Tenders" will be monitored and special serviced by the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. using its customary standard of care for similar Performance DefaultsPerformance DefaultsFailure of a Borrower to perform any promise or covenant within any applicable grace periods under the related Mortgage Loan other than a failure that constitutes a Payment Default. in its own portfolio.

2.  Secondary Risk Mortgage Loans

For Secondary Risk Mortgage LoansSecondary Risk Mortgage LoansMortgage Loan where the Lender bears all losses until the Lender’s recourse obligations are exhausted. , all of the monitoring and special servicing activities for minor or relatively immaterial defaults will be performed by the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. .

3.  Lender Tenders Not Subject to Requirements of this Chapter

Lender Tenders are not subject to the terms of this Chapter.