Section 220

Reporting Collateral Balances in Custodial Accounts

ServicersServicersPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must report, on a quarterly basis, the balances of 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. collateral held by ServicersServicersPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. in their Custodial AccountsCustodial AccountsAccounts established by the Servicer for depositing P&I payments, T&I funds, Collateral Agreement deposits, and other similar funds. using Collateral Submission Report (Form 4813).  CollateralCollateralProperty, Personal Property, or other property securing a Mortgage Loan. balances that must be included in the quarterly reporting include balances for all Custodial AccountsCustodial AccountsAccounts established by the Servicer for depositing P&I payments, T&I funds, Collateral Agreement deposits, and other similar funds. whether the collateral is held as cash, securities or letters of credit.

220.01

P&I Custodial Accounts

Except as noted in Part V, Chapter 2: Reporting and Remitting, Section 220.04: What to Report, balances in P&I Custodial AccountsP&I Custodial AccountsCustodial Account for principal and interest deposits. are excluded from this reporting requirement.

220.02

Letters of Credit as Collateral

Balances for any original Letters of CreditLetters of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. held by the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must be reported.  Balances for any original Letter of CreditLetter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. held by Fannie Mae are not required to be reported.

220.03

Report on Fair Value Basis

If the form of collateral is securities or Letters of CreditLetters of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. , ServicersServicersPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must report the balances on a fair value basis (the price that would be received to sell an asset in a transaction between market participants).

220.04

What to Report

CollateralCollateralProperty, Personal Property, or other property securing a Mortgage Loan. that must be reported using the Collateral Submission Report (Form 4813) includes:

  • Short Term
    • any Replacement ReservesReplacement ReservesCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. or repair escrows;
    • insurance proceeds held pending repair or damage to 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
    • condemnation proceeds received in a condemnation action related to 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). .
  • Long Term
    • any operating deficit or debt service reserve; or
    • NCFNCFOn an annual basis or any specified period, the total Net Operating Income, minus the full amount underwritten for Replacement Reserve expense, regardless of whether deposits will be made (per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and… sweeps – to the extent NCFNCFOn an annual basis or any specified period, the total Net Operating Income, minus the full amount underwritten for Replacement Reserve expense, regardless of whether deposits will be made (per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and… exceeds monthly P&IP&IPrincipal and interest remitted to Fannie Mae in the ordinary course.
  • Balances in any T&I Custodial AccountT&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. .
  • Other
    • any other escrow, collateral or achievement funds governed by an agreement with the BorrowerBorrowerPerson who is the obligor per the Note. ;
    • any holdback of 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. proceeds; or
    • any tenant security deposits held by the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. .
220.05

When to Report

The Collateral Submission Report (Form 4813) must be submitted to Servicer’sServicer’sPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. Fannie Mae RepresentativeFannie Mae RepresentativeFannie Mae personnel who assist you with various business matters (e.g., Fannie Mae Deal Team, pricing, delivery, servicing, asset management, etc.). within thirty (30) days after the end of each calendar quarter.