704.01B

Notice to Fannie Mae of Performance Default

By written notice to its 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.). (Multifamily Loss MitigationMultifamily Loss MitigationTeam that can be contacted at [email protected]. for Primary Risk Mortgage LoansPrimary Risk Mortgage LoansMortgage Loan where Fannie Mae bears all losses or where the Lender and Fannie Mae share losses. , and Maturity Management Top LossMaturity Management Top LossTeam that can be contacted at [email protected].  for Secondary Risk Mortgage LoansSecondary Risk Mortgage LoansMortgage Loan where the Lender bears all losses until the Lender’s recourse obligations are exhausted. ), the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must advise Fannie Mae of certain 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. as provided in this Section.  Notice of a 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. must be given to Fannie Mae:

  • within five (5) days after the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. becomes aware of 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. ; or
  • if the Loan DocumentsLoan DocumentsAll executed Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. permit a cure period after the BorrowerBorrowerPerson who is the obligor per the Note. receives written notice of its default or failure to perform any act under the Loan DocumentsLoan DocumentsAll executed Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , then within five (5) days after the Borrower’sBorrower’sPerson who is the obligor per the Note. cure period has expired and a 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. has occurred.  The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. shall provide any such notice of 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 BorrowerBorrowerPerson who is the obligor per the Note. per Part V, Chapter 7: Non-Performing Mortgage Loans, Section 703.02: Performance Defaults.

 If the Borrower’sBorrower’sPerson who is the obligor per the Note. default or failure to perform any act under the Loan DocumentsLoan DocumentsAll executed Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. has been excused by a waiver given by the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. (if permitted pursuant to this GuideGuideMultifamily Selling and Servicing Guide controlling all Lender and Servicer requirements unless a Lender Contract specifies otherwise. ) or by Fannie Mae, such default or non-performance is not considered a 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. .

After having given Fannie Mae notice of a 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. , the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. should provide updates at least monthly to its 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.). , to advise of status of the default and the steps being taken by the borrower to cure 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. .