Section 309

Applicant Experience Check

Requirements

For all Mortgage Loan Mortgage 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. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 applications and any Transfer/Assumption Transfer/AssumptionTransaction changing the ownership of the Borrower or Property. , you must:

  • perform an ACheck ACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application.  per the timing below for
    • the Borrower BorrowerPerson who is the obligor per the Note. ,
    • each Key Principal Key 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 Principal PrincipalPerson 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 Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and
    • any Person PersonLegal 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 Interest Controlling 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 Principal Key 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
      • Guarantor GuarantorKey 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 for each of the following events...

Mortgage Loans
  • upon accepting a signed application when you receive the
    • Social Security Number, or
    • Tax Identification Number;
  • before you obtain a Rate Lock Rate 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
  • before the Mortgage Loan Origination Date Mortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. .

Transfers/Assumptions
  • when the Borrower BorrowerPerson who is the obligor per the Note. submits the request and you receive the Transferee’s/Assignee’s
    • Social Security Number, or
    • Tax Identification Number; and
  • before any required Amendment to the Loan Agreement is executed.

Guidance

When entering your final Mortgage Loan Mortgage 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. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 data per  Part IV, Chapter 4: Delivery, Section 402.01: Data and Documents , the Multifamily Committing and Delivery System Multifamily Committing and Delivery SystemElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system. runs an ACheck ACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. on all listed participants.  The Mortgage Loan Mortgage 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. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 will not reach “Submitted” status unless a “You can proceed” response is received.

For any extended Rate Lock Rate 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 ACheck ACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. between Rate Lock Rate 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 Delivery DeliverySubmission 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 ACheck ACheckLender 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 ACheck ACheckLender 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 Loan Mortgage 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. Test Notes-SV Test Again Sub-bullet test1 Sub-bullet test2 application;
  • complete full credit underwriting; and
  • not interpret this ACheck ACheckLender 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 ACheck ACheckLender 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 ACheck ACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. instructions; and
  • not proceed with the application by omitting any Borrower BorrowerPerson who is the obligor per the Note. , Key Principal Key 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. , Principal PrincipalPerson 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 Guarantor GuarantorKey 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 Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will not provide any information regarding a “Do not continue processing” response for a particular
    • Borrower BorrowerPerson who is the obligor per the Note. ,
    • Key Principal Key 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. ,
    • Principal PrincipalPerson 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
    • Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
  • You must establish procedures ensuring all ACheck ACheckLender due diligence performed for the Borrower, Key Principal, and Principal using the ACheckTM application. responses remain confidential.