711.03D

No Fannie Mae Approval Required

Before committing to a Lender Workout with the BorrowerBorrowerPerson who is the obligor per the Note. , the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. must obtain the written approval of Fannie Mae Special Asset ManagementSpecial Asset ManagementTeam that performs the work of the Special Servicer for Fannie Mae that can be contacted at [email protected] .  Fannie Mae Special Asset ManagementSpecial Asset ManagementTeam that performs the work of the Special Servicer for Fannie Mae that can be contacted at [email protected] will have 10 Business DaysBusiness DaysAny day other than a Saturday, Sunday, day when Fannie Mae is closed, day when the Federal Reserve Bank of New York is closed, or for any MBS and required remittance withdrawal, a day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. from receipt of written notice from the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. , containing the terms of the Lender Workout to approve or disapprove the Lender Workout Course of ActionCourse of ActionFor Non-Performing Mortgage Loans, loss mitigation activities per Part V: Servicing and Asset Management, Chapter 7. .  With its notice of its intention to enter into a Lender Workout, the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. must deliver a copy of the proposed Lender Workout documents, including subordinate lien documentation, if applicable, to Fannie Mae Special Asset ManagementSpecial Asset ManagementTeam that performs the work of the Special Servicer for Fannie Mae that can be contacted at [email protected] for review and approval prior to execution.  The purpose of this review is to determine that:

  • the Lender Workout and related documents:
    • do not modify or waive any of the terms of 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. (s), including the NoteNoteInstrument evidencing a Mortgage Loan obligation, including Form 6010 (series), any other note approved by Fannie Mae, and all applicable addenda, schedules, and exhibits. rate, term, or amortization;
    • do not modify or waive any of the terms of the Collateral AgreementsCollateral AgreementsAgreement under which collateral (other than the Property) may be pledged, transferred, or otherwise provided to secure the Borrower’s obligations under a Mortgage Loan. ;
    • do not limit, waive, or lessen Fannie Mae’s rights, claims, or remedies under its Security InstrumentSecurity InstrumentInstrument creating a lien or encumbrance on 1 or more Properties and securing the obligations under the Loan Documents. including, but not limited to, obtaining a priority claim in a bankruptcy proceeding as a result of lending money to the BorrowerBorrowerPerson who is the obligor per the Note. ;
    • do not prevent, or otherwise limit, Fannie Mae from enforcing its rights under the Mortgage Loan DocumentsMortgage Loan DocumentsAll documents evidencing, securing, or guaranteeing the debt obligation executed for a Mortgage Loan and approved by Fannie Mae. in the event the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. defaults under its workout with the BorrowerBorrowerPerson who is the obligor per the Note. ; or
    • do not violate any bond documentation or SecuritySecurityMBS, PFP MBS, or REMIC. rules, if applicable;
  • the term of the Lender Workout loan does not exceed 24 months; and
  • Fannie Mae is satisfied with the performance of any previous Lender Workouts and the total of all Lender Workouts does not materially impact the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. ’s financial condition.

If the Non-Performing Mortgage LoanNon-Performing Mortgage LoanMortgage Loan that is subject to an uncured default. has been accelerated prior to notice of the Lender Workout, it is in Fannie Mae’s sole discretion to agree to accept less than the full payoff and reinstate 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. .

If Fannie Mae approves the Lender Workout, the LenderLenderPerson approved by Fannie Mae to sell or service Mortgage Loans. must deliver a copy of the executed Lender Workout documents, including a Subordination Agreement, if applicable, to Fannie Mae Special Asset ManagementSpecial Asset ManagementTeam that performs the work of the Special Servicer for Fannie Mae that can be contacted at [email protected] and to Fannie Mae Asset Acquisition and Custody.  If the BorrowerBorrowerPerson who is the obligor per the Note. subsequently defaults under 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. after the Lender Workout, then the ServicerServicerPrimary Person responsible for servicing the Mortgage Loan (e.g.,  the originator, the selling Lender, or a third-party servicer). must follow the procedure outlined in this Chapter for a Non-Performing Mortgage LoanNon-Performing Mortgage LoanMortgage Loan that is subject to an uncured default. as if no Lender Workout occurred.