Section 801

General

Fannie Mae may refinance certain Portfolio Mortgage LoansPortfolio Mortgage LoansMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. that do not meet TierTierTier 1, Tier 2, Tier 3, or Tier 4 per the Multifamily Underwriting Standards (Form 4660). 2 underwriting requirements (“In Place LoansIn Place LoansMortgage Loan refinancing a Portfolio Mortgage Loan that does not meet Tier 2 underwriting requirements. ”) 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). securing the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. is in good condition (or requires repairs that can reasonably be made in connection with the refinancing);
  • Fannie Mae has had a satisfactory relationship with the BorrowerBorrowerPerson who is the obligor per the Note. ; and
  • the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. may not realistically be able to be refinanced outside of Fannie Mae.

If Fannie Mae elects to purchase an In Place LoanIn Place LoanMortgage Loan refinancing a Portfolio Mortgage Loan that does not meet Tier 2 underwriting requirements. refinanced by the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. , special attention will be paid to preserving collateral value and mitigating credit risk by:

  • improving 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). condition as necessary in an attempt to generate increased cash flow to repay the 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. ;
  • maintaining 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). in good condition over the term of the In Place LoanIn Place LoanMortgage Loan refinancing a Portfolio Mortgage Loan that does not meet Tier 2 underwriting requirements. by requiring good property management and adequately funded Replacement ReservesReplacement ReservesCustodial 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. ; and
  • adding risk mitigating loan terms.