312.02
| 312.02A | |
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Requirements
You must ensure that no Lender LenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee or other person involved in Conflict Mortgage Loan underwriting and approval owns any direct or indirect equity interest in the Borrower BorrowerPerson who is the obligor per the Note. .
You must include the following in your Transaction Approval Memo:
- the amount of any direct or indirect equity interest in the Borrower BorrowerPerson who is the obligor per the Note. owned by any Lender Senior Executive Lender Senior ExecutiveFor any Lender any: a. senior executive officer serving as its president, chief executive officer, chief financial officer, chief operating officer, chief production officer, chief underwriter, chief asset manager, chief legal officer, chief information security officer, chief compliance… , other Lender LenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee or group of employees; and
- answers to the following questions, including an explanation if your answer to a question is yes:
- Does any Lender Senior Executive Lender Senior ExecutiveFor any Lender any: a. senior executive officer serving as its president, chief executive officer, chief financial officer, chief operating officer, chief production officer, chief underwriter, chief asset manager, chief legal officer, chief information security officer, chief compliance… , other Lender LenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee or group of employees, or any person who participated in the underwriting or approval of 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 , own any direct or indirect equity interest in the Borrower BorrowerPerson who is the obligor per the Note. ?
- Can any Lender Senior Executive Lender Senior ExecutiveFor any Lender any: a. senior executive officer serving as its president, chief executive officer, chief financial officer, chief operating officer, chief production officer, chief underwriter, chief asset manager, chief legal officer, chief information security officer, chief compliance… , other Lender LenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee or group of employees, or any person who participated in the underwriting or approval of 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 , require changes to the management, operations, or decision-making of the Borrower BorrowerPerson who is the obligor per the Note. ?
In addition, your underwriting submission must include:
- copies of the Borrower's Borrower'sPerson who is the obligor per the Note. organizational documents and financial statements;
- copies of all organizational documents and financial statements for any Lender Affiliate Lender AffiliateOther Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. that holds a direct or indirect equity ownership interest in the Borrower BorrowerPerson who is the obligor per the Note. ; and
- an organizational chart or diagram showing the:
- Borrower's Borrower'sPerson who is the obligor per the Note. complete ownership structure;
- relationship among the Lender LenderPerson Fannie Mae approved to sell or service Mortgage Loans. , Borrower BorrowerPerson who is the obligor per the Note. , and applicable Lender Affiliate Lender AffiliateOther Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. ; and
- percentage ownership of each entity.
You must designate 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 as a Conflict Mortgage Loan in C&D C&DElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system. .
| 312.02B | |
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Requirements
As Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. of a Controlling Conflict Mortgage Loan, you must not
- participate in loss mitigation or special asset management decisions if it becomes a Non-Performing Mortgage Loan Non-Performing Mortgage LoanMortgage Loan with an uncured default. , or
- be notified of, or participate in, any negotiations or communications between Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! and the 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. , or 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 any Affiliate AffiliateWhen referring to an affiliate of a Lender, any other Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. When referring to an affiliate of a Borrower or Key Principal: any Person that owns any direct ownership interest in Borrower or Key… of any of them).
Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will make reasonable efforts to provide copies of written communications between Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! and other parties.
These servicing restrictions apply as long as 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 is considered a Controlling Conflict Mortgage Loan.
- Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! has sole discretion to decide what action, if any, to take regarding any Controlling Conflict Mortgage Loan, any Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). securing a Controlling Conflict Mortgage Loan, or any Borrower BorrowerPerson who is the obligor per the Note. or Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
- If Fannie Mae
Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!!
decides that a Controlling Conflict Mortgage Loan has a material risk of default or other characteristics of increased risk, it can
- designate a substitute servicer or subservicer, or
- terminate (with or without cause) your right to service 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 .
- Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! will comply with the Program Rules Part 3 Sections B and C relating to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! initiated servicing transfers. After servicing is transferred, you will retain your loss sharing obligation.
| 312.02C | |
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Requirements
You will not have any First Right of Refusal to purchase a Property PropertyMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). that secured a Conflict Mortgage Loan, even if the Loss Sharing Addendum to the MSSA MSSAProgram Documents per the Multifamily Selling and Servicing Agreement. grants you this right.
| 312.02D | |
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For an MBS MBSMortgage-Backed Security backed by a Conflict Mortgage Loan, you must indicate in C&D C&DElectronic committing and delivery system used for issuing and confirming Commitments for acquiring Mortgage Loans, or any such successor system.
- that additional disclosure is required, and
- whether it is the Lender LenderPerson Fannie Mae approved to sell or service Mortgage Loans. , a Lender Affiliate Lender AffiliateOther Person or entity that Controls, is Controlled by, or is under common Control with, the Lender. , a Lender Senior Executive Lender Senior ExecutiveFor any Lender any: a. senior executive officer serving as its president, chief executive officer, chief financial officer, chief operating officer, chief production officer, chief underwriter, chief asset manager, chief legal officer, chief information security officer, chief compliance… , a Lender LenderPerson Fannie Mae approved to sell or service Mortgage Loans. employee, or group of employees who has 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. or a non-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. .
| 312.02E | |
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Requirements
If, after delivering a 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 , it becomes a Conflict Mortgage Loan, you must deliver all materials described in this Section to Multifamily Asset Management Multifamily Asset ManagementTeam that can be contacted at [email protected]. within 30 days after acquiring each equity interest.