Section 803

Eligibility Requirements

A Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan that was purchased by Fannie Mae and is held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. is eligible to be refinanced by the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. and the In Place LoanIn Place LoanMortgage Loan refinancing a Portfolio Mortgage Loan that does not meet Tier 2 underwriting requirements. purchased by Fannie Mae if:

  • during the 12 months preceding the refinance, the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan that was purchased by Fannie Mae and is held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. had a timely payment history;
  • no unauthorized transfers or changes of the ownership interest in the BorrowerBorrowerPerson who is the obligor under the Note. occurred;
  • no unauthorized LiensLiensLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. were placed or filed against 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). ;
  • during the 12 months preceding the refinance, 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). operations were stable or indicated a positive trend;
  • 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). meets the underwriting and delivery requirements of the GuideGuideMultifamily Selling and Servicing Guide and Delegated Underwriting and Servicing Guide, including any exhibits, appendices, or other referenced forms, as updated, amended, restated, modified, or supplemented by any lender memo; provided, however, if a topic is covered in the Multifamily Selling and… in all respects (physical condition, unit mix, occupancy requirements, capital reserve, etc.), except as specifically modified by this Chapter; and
  • the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. is able to demonstrate in the Transaction Approval Memo that the credit risk of the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan that was purchased by Fannie Mae and is held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. is reduced by the refinancing and that the refinancing is not merely a delay of an inevitable foreclosure of 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). that may increase any losses from the Portfolio Mortgage LoanPortfolio Mortgage LoanMortgage Loan that was purchased by Fannie Mae and is held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. in the process.