Section 304

T&I Custodial Accounts

304.01

Deposits

Requirements

You must:

  • use T&I Custodial Accounts T&I Custodial AccountsCustodial Account for the deposit of T&I and other impound escrow funds. for
    • all Borrower BorrowerPerson who is the obligor per the Note. payments for T&I Impositions T&I ImpositionsAmounts for taxes, insurance, and other charges assessed against or owing on the Property which you deem necessary to protect the Property and/or prevent Liens imposed on it. per  Part V, Chapter 3: Custodial Accounts, Section 304.02: T&I Impositions , and
    • Servicing Advances Servicing AdvancesAll amounts required to be paid by the Borrower, for all taxes and assessments against each Property, all insurance premiums for insurance for each Property to insurance carrier(s) acceptable to Fannie Mae, in accordance with the Guide, and any other payment, as determined by Fannie Mae,… you make for these items; and
  • not commingle T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. funds with
    • P&I Custodial Account P&I Custodial AccountCustodial Account for principal and interest deposits. funds, or
    • funds for any other Custodial Account Custodial AccountAccount established by the Servicer for depositing P&I payments, T&I payments, and escrow, reserve, or other funds received from the Borrower per any Loan Document, including the: Collateral Agreement; Multifamily Loan Agreement; or Security Instrument. .

Operating Procedures

You may establish:

  • 1 T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. for all T&I T&ITaxes or assessments that may become a Lien on the Property and insurance premiums. deposits from all Mortgage Loans Mortgage LoansMortgage 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 ; or
  • 2 separate T&I Custodial Accounts T&I Custodial AccountsCustodial Account for the deposit of T&I and other impound escrow funds. , with funds for all 
    • Cash Mortgage Loans Cash Mortgage LoansMortgage Loan purchased by Fannie Mae in exchange for cash. in 1 T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. , and 
    • Securitized Mortgage Loans Securitized Mortgage LoansMortgage Loan backing an MBS, PFP MBS, or REMIC. in the other T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. .

You must obtain Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s consent to establish a separate T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. for an individual

  • 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 , or
  • Borrower BorrowerPerson who is the obligor per the Note. .
304.02

T&I Impositions

Requirements

Unless precluded by the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , you must:

  • collect monthly payments from the Borrower BorrowerPerson who is the obligor per the Note. ;
  • ensure all T&I Impositions T&I ImpositionsAmounts for taxes, insurance, and other charges assessed against or owing on the Property which you deem necessary to protect the Property and/or prevent Liens imposed on it. are timely paid, including:
    • real estate taxes;
    • special assessments;
    • water and sewer assessments;
    • PILOTs PILOTsPayment In Lieu Of Taxes. ;
    • insurance premiums;
    • ground lease rents; and
    • all other charges or obligations that could become a Lien LienLien, mortgage, bond interest, pledge, security interest, charge, or encumbrance of any kind. against the 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). ; and
  • pay any penalty or late fee if you fail to make timely payments.

Guidance

You may:

  • Charge the Borrower BorrowerPerson who is the obligor per the Note. for any penalty or late fee incurred if the failure to timely pay was due to insufficient T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. funds.
  • Use qualified third-party vendors (that you manage and monitor) to
    • collect T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. funds, and
    • pay T&I Impositions T&I ImpositionsAmounts for taxes, insurance, and other charges assessed against or owing on the Property which you deem necessary to protect the Property and/or prevent Liens imposed on it. .
304.03

Shortfalls

Requirements

T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. shortfalls must be paid by

  • the Borrower BorrowerPerson who is the obligor per the Note. , or
  • you (i.e., a Servicing Advance Servicing AdvanceAll amounts required to be paid by the Borrower, for all taxes and assessments against each Property, all insurance premiums for insurance for each Property to insurance carrier(s) acceptable to Fannie Mae, in accordance with the Guide, and any other payment, as determined by Fannie Mae,… ).
304.04

Prohibited Uses

Requirements

You must not use any T&I Custodial Account T&I Custodial AccountCustodial Account for the deposit of T&I and other impound escrow funds. funds to:

  • supplement a shortfall in the Borrower's Borrower'sPerson who is the obligor per the Note. monthly P&I P&IPrincipal and interest payment to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ;
  • reimburse yourself for any Servicing Advance Servicing AdvanceAll amounts required to be paid by the Borrower, for all taxes and assessments against each Property, all insurance premiums for insurance for each Property to insurance carrier(s) acceptable to Fannie Mae, in accordance with the Guide, and any other payment, as determined by Fannie Mae,… unless it is recovered from subsequent collections for that 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 ; or
  • supplement a shortfall in a Borrower's Borrower'sPerson who is the obligor per the Note. taxes or insurance payment using another Borrower's Borrower'sPerson who is the obligor per the Note. tax or insurance deposits.

Guidance

You may use a Borrower's Borrower'sPerson who is the obligor per the Note. own tax or insurance deposits to cover a shortfall in the Borrower's Borrower'sPerson who is the obligor per the Note. tax or insurance obligation if you adjust future deposits per Part V, Chapter 3: Custodial Accounts, Section 308.04B: Insufficient Funds .

304.05

No Financing for T&I Impositions

Requirements

To pay any T&I Impositions T&I ImpositionsAmounts for taxes, insurance, and other charges assessed against or owing on the Property which you deem necessary to protect the Property and/or prevent Liens imposed on it. , you must not

  • provide financing to the Borrower BorrowerPerson who is the obligor per the Note. , or
  • allow the Borrower BorrowerPerson who is the obligor per the Note. to obtain financing.