Section 309

Applicant Experience Check

Requirements

For all 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. applications and any Transfer/AssumptionTransfer/AssumptionTransaction changing the ownership of the Borrower or Property. , you must:

  • perform an ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application.  per the timing below for
    • the BorrowerBorrowerPerson who is the obligor per the Note. ,
    • each Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. ,
    • each PrincipalPrincipalPerson who owns or controls, in the aggregate, directly or indirectly (together with that Person's Immediate Family Members, if an individual), specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals,…,
    • each GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and
    • any PersonPersonLegal person, including an individual, estate, trust, corporation, partnership, limited liability company, financial institution, joint venture, association, or other organization or entity (whether governmental or private). who owns a Controlling InterestControlling InterestFor any entity, ownership or control of 50% or more of the ownership interests in the entity or the power or right to control or modify, directly or indirectly, the management and operations of the entity. in an entity
      • Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , or
      • GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. ; and
  • receive a "You can proceed" response.
ACheck Timing
For all... You must perform an ACheck...
  • Mortgage Loans, and
  • Transfer/Assumptions
  • upon accepting a signed application;
  • within 1 Business DayBusiness DayAny 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, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. before Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. ;
  • within 3 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, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. before the Mortgage Loan Origination DateMortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. ; and
  • within 1 Business DayBusiness DayAny 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, day when the Federal Reserve Bank is closed in the district where any of the MBS funds are held. before DeliveryDeliverySubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. .

Guidance

For any extended Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. (e.g., 180 days), you should consider performing an additional ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. between Rate LockRate LockAgreement between you and the Investor containing the terms of the Lender-Arranged Sale or Multifamily Trading Desk trade of the Mortgage Loan and the MBS terms and conditions relating to the underlying MBS, if applicable, which may be documented via a recorded telephone conversation. and DeliveryDeliverySubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. .

Operating Procedures

The ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. application is available at https://multifamily.fanniemae.com/applications-technology/acheck.

ACheck Frequently Asked Questions
Question Answer
What information do you need to perform an ACheck?

The applicant’s

 

  • tax identification number, or
  • Social Security number.
How do you view ACheck results?

The ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. application will immediately respond either

 

  • “You can proceed”, or
  • “Do not continue processing”.
What must you do if you receive a "You can proceed" response?

For each applicant, you must:

 

  • receive a “You can proceed” response to proceed with 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. application;
  • complete full credit underwriting; and
  • not interpret this ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. response to mean the applicant is approved.
What must you do if you receive a "Do not continue processing" response?

If the ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. response is “Do not continue processing the transaction involving this applicant” (or similar wording), you must:

 

  • comply with all ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. instructions; and
  • not proceed with the application by omitting any BorrowerBorrowerPerson who is the obligor per the Note. , Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. , PrincipalPrincipalPerson who owns or controls, in the aggregate, directly or indirectly (together with that Person's Immediate Family Members, if an individual), specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals,…, or GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. who received a “Do Not Process” response.
What about confidentiality? 
  • Fannie Mae will not provide any information regarding a “Do not continue processing” response for a particular
    • BorrowerBorrowerPerson who is the obligor per the Note. ,
    • Key PrincipalKey PrincipalPerson who controls and/or manages the Borrower or the Property, is critical to the successful operation and management of the Borrower and the Property, and/or may be required to provide a Guaranty. ,
    • PrincipalPrincipalPerson who owns or controls, in the aggregate, directly or indirectly (together with that Person's Immediate Family Members, if an individual), specified interests in the Borrower per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 303: Key Principals, Principals,…, or
    • GuarantorGuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
  • You must establish procedures ensuring all ACheckACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. responses remain confidential.