Chapter 5

Surveillance

Section 501	Generally

Requirements

You must:

Monitor 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). by:
- inspecting it;
- evaluating its financial performance; and
- submitting the inspection and evaluation results per this Chapter.
Ensure the Borrower BorrowerPerson who is the obligor per the Note. manages and maintains 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). per the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .

Section 502	Property Inspections

502.01	Forms

Requirements

For all 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). inspections, you must use

the MBA MBAMortgage Bankers Association Standard Inspection Form, or
if a Catastrophic Event Catastrophic EventNatural or man-made hazard resulting in an event of substantial extent causing significant physical damage or destruction, loss of life, or drastic change to the natural environment, such as earthquake, flood, terrorist attack, or windstorm. has occurred, the Multifamily Catastrophic Loss Inspection form ( Form 4261 ).

For a Green Rewards Mortgage Loan Green Rewards Mortgage LoanMortgage Loan secured by a Property where the Borrower agrees to undertake 1 or more Energy- and Water-Efficiency Measures that comply with Part III, Chapter 4: Green Mortgage Loans, Section 403: Green Rewards Mortgage Loans. , you must also submit the Green Rewards Verification Inspection Form ( Form 4221 ) per Part V, Chapter 4: Asset Management: Loan Document Administration, Section 408.03I: Green Rewards Efficiency Measure Verification .

Operating Procedures

On the MBA MBAMortgage Bankers Association Standard Inspection Form, you must:

1. Select the “Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! Inspection” option on the Tools tab.

2. Complete the tabs per the following table.

Tab to be Completed	Additional Tab Requirements
General Information	Include the inspector's first and last name.
Physical Condition & Deferred Maintenance
Photos	Ensure the minimum interior and exterior photo requirements are met per Part V, Chapter 5: Surveillance, Section 502.03: Property Inspection Protocol . Include photographs of surrounding neighborhoods, if desired. Note: Photographs of the surrounding neighborhood do not count toward the minimum photo requirements per Part V, Chapter 5: Surveillance, Section 502.03: Property Inspection Protocol .
Rent Roll	Ensure the rent roll is: obtained during the site inspection; and retained in your Servicing File Servicing FileYour file for each Mortgage Loan serviced. and available to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! upon request.
Management Interview
Multifamily
Fannie Mae Assessment Addendum	Ensure all Seller/Servicer Certification information is completed, and reviewed and certified by someone other than the actual inspector.
Senior Supplement	Required only for a Seniors Housing Property Seniors Housing PropertyMultifamily residential rental property with any combination of Independent Living, Assisted Living, Alzheimer’s/Dementia Care, or Skilled Nursing units. .

3. Assign an overall rating per the MBA MBAMortgage Bankers Association Rating Scale Definitions.

502.02	Property Condition Concerns

Operating Procedures

If the Property has...	You must...
an inspection rating of 4 or 5 per the Fannie Mae Assessment Addendum tab of the MBA Standard Inspection Form; incomplete repairs per the specified timing in the Loan Documents; significant deferred maintenance; or non-significant deferred maintenance that was not corrected within 12 months after notifying the Borrower.	Inform Multifamily Inspections Multifamily InspectionsTeam that can be contacted at [email protected]. and Multifamily Loss Mitigation Multifamily Loss MitigationTeam that can be contacted at [email protected]. : promptly after receiving notice of any Life Safety Issues per Part V, Chapter 5: Surveillance, Section 502.06F: Life Safety Issues ; or otherwise within 10 Business Days Business 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. after becoming aware. Reinstate any suspended Completion/Repair Escrow Completion/Repair EscrowCustodial Account funded on the Mortgage Loan Origination Date for Completion/Repairs or capital improvements per the Loan Documents. or Replacement Reserve Replacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. if 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). inspection rating is 4 or 5, unless the rating resulted from a casualty loss (see Part V, Chapter 5: Surveillance, Section 502.06E: Collateral Analysis ). Inspect 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). as necessary to ensure the Borrower BorrowerPerson who is the obligor per the Note. resolves any deferred maintenance. Regardless of whether 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 on a Watchlist WatchlistThe risk rating classification if you or Fannie Mae determine the Mortgage Loan has heightened credit risk. , submit a request to Multifamily Loss Mitigation Multifamily Loss MitigationTeam that can be contacted at [email protected]. before ordering a PCA PCAAssessment of the Property's physical condition and historical operation. (excluding regularly-scheduled PCAs PCAsAssessment of the Property's physical condition and historical operation. required per the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ). Identify the appropriate Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! risk rating per Part VI, Chapter 1: Watchlist Management- Title Update .

If the Property has...

You must...

an inspection rating of 4 or 5 per the Fannie Mae Assessment Addendum tab of the MBA Standard Inspection Form;
incomplete repairs per the specified timing in the Loan Documents;
significant deferred maintenance; or
non-significant deferred maintenance that was not corrected within 12 months after notifying the Borrower.

Inform Multifamily Inspections Multifamily InspectionsTeam that can be contacted at [email protected]. and Multifamily Loss Mitigation Multifamily Loss MitigationTeam that can be contacted at [email protected]. :
- promptly after receiving notice of any Life Safety Issues per Part V, Chapter 5: Surveillance, Section 502.06F: Life Safety Issues ; or
- otherwise within 10 Business Days Business 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. after becoming aware.
Reinstate any suspended Completion/Repair Escrow Completion/Repair EscrowCustodial Account funded on the Mortgage Loan Origination Date for Completion/Repairs or capital improvements per the Loan Documents. or Replacement Reserve Replacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. if 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). inspection rating is 4 or 5, unless the rating resulted from a casualty loss (see Part V, Chapter 5: Surveillance, Section 502.06E: Collateral Analysis ).
Inspect 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). as necessary to ensure the Borrower BorrowerPerson who is the obligor per the Note. resolves any deferred maintenance.
Regardless of whether 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 on a Watchlist WatchlistThe risk rating classification if you or Fannie Mae determine the Mortgage Loan has heightened credit risk. , submit a request to Multifamily Loss Mitigation Multifamily Loss MitigationTeam that can be contacted at [email protected]. before ordering a PCA PCAAssessment of the Property's physical condition and historical operation. (excluding regularly-scheduled PCAs PCAsAssessment of the Property's physical condition and historical operation. required per the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ).
Identify the appropriate Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! risk rating per Part VI, Chapter 1: Watchlist Management- Title Update .

502.03	Property Inspection Protocol

Guidance

the current Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! risk rating,
the Property Condition Rating Property Condition RatingAn assessment of the Property’s overall condition per the MBA Standard Inspection Form, expressed on a scale from 1 (the best Property Condition Rating) to 5 (lowest Property Condition Rating). ,
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 amount at the Mortgage Loan Origination Date Mortgage Loan Origination DateDate you fund a Mortgage Loan to the Borrower. , and
a full inspection (unless otherwise noted) of the specified percentage of units per the Property Inspection Protocol table criteria, but not:
- less than the specified minimum; and
- more than the specified maximum.

If the scheduled inspection due date is within 6 months of the Maturity Date Maturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. , the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. inspection due date will be set to 6 months before the Maturity Date Maturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. .

Operating Procedures

You must complete:

a post-origination 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). inspection within 12 months; and
additional 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). inspections per the Inspection Frequency column in the following table.

Property Inspection Protocol
If the original Mortgage Loan Amount is greater than $30 million...
Type	Fannie Mae Risk Rating	Inspection Frequency	Number of Units to Inspect		Minimum # of Photos Total (Interior/Exterior)	Inspector
Type	Fannie Mae Risk Rating	Inspection Frequency	%	Min/Max	Minimum # of Photos Total (Interior/Exterior)	Inspector
All Mortgage Loans	Pass, Pass-Watch, or Special Mention	Annual	5%	5/15	20 (5/15)	Third-Party, or In-House
All Mortgage Loans	Substandard	Annual	10%	10/20	20 (5/15)	In-House Only
If the original Mortgage Loan Amount is greater than $6 million and less than or equal to $30 million...
NOTE: DSCR is per the most recent annual financial statement submitted to Fannie Mae.
Type	Fannie Mae Risk Rating	Inspection Frequency	Number of Units to Inspect		Minimum # of Photos Total (Interior/Exterior)	Inspector
Type	Fannie Mae Risk Rating	Inspection Frequency	%	Min/Max	Minimum # of Photos Total (Interior/Exterior)	Inspector
Most recent Property Condition Rating of 3	Pass, Pass-Watch, or Special Mention	Annual	10%	10/20	20 (5/15)	Third-Party, or In-House
Consecutive Property Condition Ratings of 3 or worse	All Ratings	Annual	10%	10/20	20 (5/15)	In-House Only
Most recent Property Condition Rating of 4 or 5	All Ratings	Annual	10%	10/20	20 (5/15)	In-House Only
Seniors Housing, or Rent-Stabilized	Pass, Pass-Watch, or Special Mention	Annual	5%	5/15	20 (5/15)	Third-Party, or In-House
Seniors Housing, or Rent-Stabilized	Substandard	Annual	10%	10/20	20 (5/15)	In-House Only
Maturing	All Ratings	Within 12 months before Maturity Date Maturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents.	Per applicable 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 type.
All others	Pass, Pass-Watch, or Special Mention; and DSCR DSCROn an annual basis or any specified period, the ratio of Net Cash Flow to the total of: principal, interest, and required Mezzanine Financing or Hard Pay Preferred Equity payments. > 1.35, or Co-op Co-opMultifamily residential property owned by a Cooperative Organization. DSCR DSCROn an annual basis or any specified period, the ratio of Net Cash Flow to the total of: principal, interest, and required Mezzanine Financing or Hard Pay Preferred Equity payments. > 1.00.	Every 2 years; or Annual if required annual Operating Statement not received.	5%	5/15	20 (5/15)	Third-Party, or In-House
	Pass, Pass-Watch, or Special Mention; and DSCR DSCROn an annual basis or any specified period, the ratio of Net Cash Flow to the total of: principal, interest, and required Mezzanine Financing or Hard Pay Preferred Equity payments. < 1.35, or Co-op Co-opMultifamily residential property owned by a Cooperative Organization. DSCR DSCROn an annual basis or any specified period, the ratio of Net Cash Flow to the total of: principal, interest, and required Mezzanine Financing or Hard Pay Preferred Equity payments. < 1.00.	Annual	5%	5/15	20 (5/15)	Third-Party, or In-House
	Substandard	Annual	10%	10/20	20 (5/15)	In-House Only
If the original Mortgage Loan Amount is $6 million or less...
NOTE: If the Property has 10 units or less, at least 2 units must be inspected.
Type	Fannie Mae Risk Rating	Inspection Frequency	Number of Units to Inspect		Minimum # of Photos Total (Interior/Exterior)	Inspector
Type	Fannie Mae Risk Rating	Inspection Frequency	%	Min/Max	Minimum # of Photos Total (Interior/Exterior)	Inspector
Most recent Property Condition Rating of 4 or 5 (unless Delivered Mortgage Loan Amount was less than $750,000)	All Ratings	Annual	10%	10/20	20 (5/15)	In-House Only
Seniors Housing, or Rent-Stabilized	Pass, Pass Watch, or Special Mention	Annual	5%	5/15	20 (5/15)	Third-Party, or In-House
Seniors Housing, or Rent-Stabilized	Substandard	Annual	10%	10/20	20 (5/15)	In-House Only
Maturing	All Ratings	Within 12 months before Maturity Date Maturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents.	Per applicable 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 type.
All others	Pass, Pass-Watch, or Special Mention; and Delivered Mortgage Loan Amount Delivered Mortgage Loan AmountUPB of a Mortgage Loan when it is purchased by Fannie Mae. < $750,000.	Walk Around every 5 years	N/A	N/A	15 (exterior photos only)	Third-Party, or In-House
	Pass, Pass-Watch, or Special Mention; and Delivered Mortgage Loan Amount Delivered Mortgage Loan AmountUPB of a Mortgage Loan when it is purchased by Fannie Mae. > $750,000.	Every 2 years	5%	2/5	15 (5/10)	Third-Party, or In-House
	Substandard	Annual	10%	2/5	15 (5/10)	In-House Only

502.04	Scheduling and Submissions

502.04A	Scheduling

Operating Procedures

You must:

ensure 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). inspections are performed per Part V, Chapter 5: Surveillance, Section 502.03: Property Inspection Protocol ; and
allow enough time to submit 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). inspection form by the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. submission due date.

Guidance

For scheduling efficiency, you may request 1 automatic extension for up to 60 days after the submission due date if:

you request it before the original submission due date using the “Modification Request” tab within the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. ;
the Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! risk rating is not Substandard;
the most recent 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). inspection rating is:
- 1 or 2; or
- 3 if the inspection is less than 1 year old; and
the extended MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. submission due date is at least 6 months before the Maturity Date Maturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. .

502.04B	Submissions

Operating Procedures

You must:

Submit via the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. :
- the origination inspection form:
  - within 45 days after Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! purchases 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 and loads it into the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. ; and
  - no later than the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. submission due date; and
- each subsequent inspection form:
  - within 60 days after 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). inspection date; and
  - no later than the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. submission due date.
Timely resolve all issues Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! identifies.

Guidance

See the MAMP User Guide for 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). inspection form submission information.

If 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). inspection is inadequate, Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! may require you to obtain a new inspection at your expense.

502.05	Property Inspectors

502.05A	Qualifications

Requirements

You must ensure any inspector:

Meets 1 of the following:

1. Is certified by the:

- Real Estate Assessment Center for HUD as a Certified Home Inspector;
- American Society of Home Inspectors (ASHI); or
- International Association of Certified Home Inspectors (InterNACHI).

2. Is a:

- state-certified home inspector;
- registered architect; or
- civil engineer.

3. Successfully completed other acceptable training, including the MBA's MBA'sMortgage Bankers Association School of Multifamily Property Inspections.

Has the following minimum experience:

Type	Minimum Inspection Experience
Senior Housing Mortgage Loans	10 seniors housing property inspections
Substandard Fannie Mae Risk Rating	25 multifamily property inspections
All Others	10 multifamily property inspections

502.05B	Third Parties

Requirements

Any third-party inspector must:

have no financial interest in the inspected 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). ;
have experience in the Property's Property'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). market; and
not reassign responsibility to another 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). without your approval.

Guidance

Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! reserves the right, in its sole discretion, to notify you that a third-party inspector or inspection firm is unacceptable.

502.06	Content

502.06A	Unit Selection

Operating Procedures

When selecting units:

The inspector, not 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). manager, must select and inspect the interior of:
- all “down” units (i.e., units that cannot currently be rented in the normal course of business);
- at least the minimum, but no more than the maximum, number of occupied and vacant units per Part V, Chapter 5: Surveillance, Section 502.03: Property Inspection Protocol ; and
- units where at least:
  - 50% are vacant (if existing); and
  - 2 are occupied.
If substantial physical concerns exist, the inspector may inspect more than the maximum number of units per Part V, Chapter 5: Surveillance, Section 502.03: Property Inspection Protocol .
If 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). has Non-Contiguous Parcels Non-Contiguous ParcelsMultiple parcels of land securing a Mortgage Loan that do not share common boundaries or that are separated by dedicated or private streets that are major arterials. or scattered sites, on each parcel or site:
- inspect all buildings;
- allocate the number of units to inspect in the same proportion as the total 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). units; and
- randomly select the units to be inspected.

502.06B	Photos

Operating Procedures

You must submit at least the minimum number of photos per Part V, Chapter 5: Surveillance, Section 502.03: Property Inspection Protocol with 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). inspection form. The photos must include views and captions of the Property's Property'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code).

signage,
frontage,
site office and clubhouse (if applicable),
amenities,
typical building front,
apartment interior,
major building systems,
deferred maintenance and life safety items,
extraordinary repair or capital expenditure items, and
all critical or substantial issues per the inspection report.

502.06C	Interviews

Operating Procedures

Except for walk-around inspections, you must interview 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). manager and other on-site staff to:

ascertain the Property's Property'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). condition and performance; and
confirm all life safety and deferred maintenance items per the most recent 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). inspection were corrected.

502.06D	Market Analysis

Operating Procedures

You must evaluate:

the Property's Property'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). neighborhood, submarket, and market to determine material shifts in economic and real estate conditions; and
competitive properties to determine any changes in the Property's Property'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). competitive position since
- initial underwriting, or
- the most recent 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). inspection.

502.06E	Collateral Analysis

Operating Procedures

Step	Activity	You must...
1	Notify Borrower BorrowerPerson who is the obligor per the Note.	Within 45 days after the inspection date, identify the repair or maintenance issues, include any photos, and direct the Borrower BorrowerPerson who is the obligor per the Note. to timely complete the work. Use Form 4830 if 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). inspection rating is 3, 4, or 5.
2	Follow Up	Follow up to ensure the Borrower BorrowerPerson who is the obligor per the Note. responded and the work was successfully completed. If not: notify the Borrower BorrowerPerson who is the obligor per the Note. ; notify Multifamily Inspections Multifamily InspectionsTeam that can be contacted at [email protected]. ; and include your resolution recommendation. Use Form 4831 or Form 4832 if 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). inspection rating is 3, 4, or 5.
3	Set Rating	Set 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). inspection overall rating to 4 (or 5 depending on the severity or other existing issues) if: 10% or more of the units are down for any reason; or there is casualty damage equal to 25% of the current UPB UPBUnpaid Principal Balance , or $1 million.

Step

Activity

You must...

Notify

Within 45 days after the inspection date,
- identify the repair or maintenance issues,
- include any photos, and
- direct the Borrower BorrowerPerson who is the obligor per the Note. to timely complete the work.
Use Form 4830 if 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). inspection rating is 3, 4, or 5.

Follow Up

Follow up to ensure the Borrower BorrowerPerson who is the obligor per the Note. responded and the work was successfully completed. If not:
- notify the Borrower BorrowerPerson who is the obligor per the Note. ;
- notify Multifamily Inspections Multifamily InspectionsTeam that can be contacted at [email protected]. ; and
- include your resolution recommendation.
Use Form 4831 or Form 4832 if 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). inspection rating is 3, 4, or 5.

Set Rating

Set 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). inspection overall rating to 4 (or 5 depending on the severity or other existing issues) if:

10% or more of the units are down for any reason; or
there is casualty damage equal to
- 25% of the current UPB UPBUnpaid Principal Balance , or
- $1 million.

Guidance

Setting 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). inspection rating to 4 or 5 does not:

add 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 to Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s Watchlist WatchlistThe risk rating classification if you or Fannie Mae determine the Mortgage Loan has heightened credit risk. ;
require an Action Plan Action PlanYour report analyzing the Mortgage Loan and Property issues, your resolution strategy, and related actions and outcomes. ; or
require Replacement Reserves Replacement ReservesCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. reinstatement if the rating is the result of a casualty loss unless you
- identify other performance issues that increase credit risk, or
- expect insufficient funds or insurance proceeds to restore 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). to its original condition.

502.06F	Life Safety Issues

Requirements

If a third-party inspector identifies 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). issues that would be rated 3, 4, or 5 per the “Life Safety” section of the Fannie Mae Assessment Addendum of the MBA MBAMortgage Bankers Association Standard Inspection Form, the inspector must notify you within 3 Business Days Business 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. after completing the inspection.

502.07	Quality Control

502.07A	Program

Requirements

You must:

Have a quality control program to annually review 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). inspections performed by third-party inspectors.
Ensure every 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). inspection complies with Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s requirements before submission.
Show evidence and results of your quality control program if requested.

502.07B	Inspection Form Retention

Operating Procedures

You must

retain all 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). inspection forms in your Servicing File Servicing FileYour file for each Mortgage Loan serviced. for at least 2 inspection cycles, and
submit them upon request.

502.07C	Additional Inspections and Fees

Guidance

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). inspections are a regular asset management responsibility, and additional 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). inspections may be required if circumstances warrant.

You may charge the Borrower BorrowerPerson who is the obligor per the Note. a reasonable 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). inspection fee if it is

permitted per the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. or other written Borrower BorrowerPerson who is the obligor per the Note. agreement, and
not prohibited by Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! .

Section 503	Financial Analysis of Operations

503.01	Reporting

Requirements

You must submit quarterly and annual Financial Analysis of Operations reports (Form 4254 or Form 4254.Seniors) for each 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). .

Operating Procedures

You must submit all Financial Analysis of Operations reports via the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. . To ensure the operating statements are complete:

Item	Activity	You must...
1	Verify	Verify the operating statements reflect the Property's Property'sMultifamily residential real estate securing the Mortgage Loan, including the fee simple or Leasehold interest, Improvements, and personal property (per the Uniform Commercial Code). actual physical occupancy based on the most recent quarter-end rent roll.
2	Provide	Provide actual expenses, normalizing for seasonal variations, and certain expenses including, but not limited to, real estate taxes, property casualty insurance, Replacement Reserves Replacement ReservesCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. , and property management fees.
3	Comment	Comment if: 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 on Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s Watchlist WatchlistThe risk rating classification if you or Fannie Mae determine the Mortgage Loan has heightened credit risk. ; or per Form 4254.DEF there is a 20% or greater variance, either higher or lower, from the same reporting period in the prior year for Effective Gross Income Effective Gross IncomeFor any specified period, the Property's total Net Rental Income, plus commercial income, plus other income, all calculated per Part II, Chapter 2: Valuation and Income, Section 203: Income Analysis and the applicable products and features in Part III. , Total Operating Expenses, Capital Expenditures, or Debt Service Coverage. Comments should: describe: the situation and the variance’s root cause; risk changes or trends; 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). management changes; the Borrower BorrowerPerson who is the obligor per the Note. /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). manager’s plan to improve cash flow if 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). is on the Watchlist WatchlistThe risk rating classification if you or Fannie Mae determine the Mortgage Loan has heightened credit risk. , or not performing as expected per original underwriting; and the overall payment history, debt service adjustments, 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). performance, or significant financial changes; and include: available market data, noting concerns or improvements, and 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). performance relative to competition; normalization/annualization adjustments; and applicable hedge data for rate cap income and/or escrow payments.
4	Resolve	Timely resolve any quality control issues.

503.02	Quarterly Financial Analysis of Operations

Requirements

Fannie Mae Watchlist Status or Product	Reporting
Fannie Mae Watchlist Property (All Products)	You must submit detailed quarterly operating statements 90 days after the end of the first quarter, and 75 days after the end of the second and third quarters.
Cooperative Property	No quarterly financial reporting or waiver required.
Small Mortgage Loan	If the original 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 amount is: equal to $6 million or less, no quarterly financial reporting or waiver required; or greater than $6 million, you must submit detailed quarterly operating statements 75 days after the end of the second and third quarters.
Seniors Housing Property	You must submit detailed quarterly operating statements 75 days after the end of every quarter.
Credit Facility Property	You must submit the Deal Level Structured Transaction Quarterly report 75 days after the end of every quarter, including the detailed quarterly operating statements, Structured Facilities Monitoring Narrative ( Form 4801 ), and Spreadsheet ( Form 4802 ).
All Others	You must submit detailed quarterly operating statements 75 days after the end of the second and third quarters.

Operating Procedures

You must adhere to the following due dates:

Fannie Mae Watchlist Property
Reporting Quarter	Period Covered	Reporting Due Date for Property with 12/31 Fiscal Year End	Reporting Due Date for Property with non-12/31 Fiscal Year End
First	1st quarter	June 30	90 days after 1st quarter end
Second	2nd quarter year-to-date	September 15	75 days after 2nd quarter end
Third	3rd quarter year-to-date	December 15	75 days after 3rd quarter end

Seniors Housing Property
Reporting Quarter	Period Covered	Reporting Due Date for Property with 12/31 Fiscal Year End	Reporting Due Date for Property with non-12/31 Fiscal Year End
First	Trailing 3 months operating data covering the 1st quarter	June 15	75 days after 1st quarter end
Second	Trailing 3 months operating data covering the 2nd quarter	September 15	75 days after 2nd quarter end
Third	Trailing 3 months operating data covering the 3rd quarter	December 15	75 days after 3rd quarter end
Fourth	Trailing 3 months operating data covering the 4th quarter	March 15	75 days after 4th quarter end

Credit Facility Property
Reporting Quarter	Reporting Period	Reporting Due Date for Property with 12/31 Fiscal Year End	Reporting Due Date for Property with non-12/31 Fiscal Year End
First	Trailing 3 months operating data: 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). level statements covering the 1st quarter; and Deal level Structured Facilities Monitoring Narrative and Spreadsheet ( Form 4801 and Form 4802 ).	June 15	75 days after 1st quarter end
Second	Trailing 3 months operating data: 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). level statements covering the 2nd quarter; and Deal level Structured Facilities Monitoring Narrative and Spreadsheet ( Form 4801 and Form 4802 ).	September 15	75 days after 2nd quarter end
Third	Trailing 3 months operating data: 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). level statements covering the 3rd quarter; and Deal level Structured Facilities Monitoring Narrative and Spreadsheet ( Form 4801 and Form 4802 ).	December 15	75 days after 3rd quarter end
Fourth	Trailing 3 months operating data: 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). level statements covering the 4th quarter; and Deal level Structured Facilities Monitoring Narrative and Spreadsheet ( Form 4801 and Form 4802 ).	March 15	75 days after 4th quarter end

All Others
Reporting Quarter	Period Covered	Reporting Due Date for Property with 12/31 Fiscal Year End	Reporting Due Date for Property with non-12/31 Fiscal Year End
Second	2nd quarter year-to-date	September 15	75 days after 2nd quarter end
Third	3rd quarter year-to-date	December 15	75 days after 3rd quarter end

Guidance

If any due date is not a Business Day Business 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. , you may submit the quarterly Financial Analysis of Operations on the next Business Day Business 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. .

503.03	Annual Financial Analysis of Operations

503.03A	Reporting Period

Requirements

The annual Financial Analysis of Operations (Form 4254 or Form 4254.Seniors) for each 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). must cover the

previous calendar year for 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). with a 12/31 fiscal year end, or
fiscal year ending in the previous calendar year for 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). with a non-12/31 fiscal year end.

503.03B	Submission

Operating Procedures

Comply with the Annual Reporting Protocol table.
Analyze the Borrower's Borrower'sPerson who is the obligor per the Note. operating statements per Form 4254.DEF .
Indicate on each statement line which of the Borrower's Borrower'sPerson who is the obligor per the Note. income and expense items are included.
Provide the pertinent income, expense, and other required data for the current reporting period in the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. .

Annual Reporting Protocol
For...	Due Date	You must...
First Year
A Mortgage Loan Fannie Mae purchases on or before June 30	June 1 of the following year.	Annualize the operating data to represent 12 months of operations.
A Mortgage Loan Fannie Mae purchases on or after July 1	June 1 of the second year after purchase.	Submit 12 months of actual operating data.
Subsequent Years
Every Property	June 1 for 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). with a 12/31 fiscal year end, or for 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). with a non-12/31 fiscal year end: within 150 days after the fiscal year-end; and submit a data change request via the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. to change the Borrower's Borrower'sPerson who is the obligor per the Note. fiscal year end.	Submit 12 months of actual operating data.

503.03C	Annual Review

Operating Procedures

Within 15 Business Days Business 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. after Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! notifies you of 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 review, you must submit:

the Borrower's Borrower'sPerson who is the obligor per the Note. operating statements, with each income and expense line item indicated per Form 4254.DEF ;
the Borrower's Borrower'sPerson who is the obligor per the Note. escrow activity reconciliation; and
any other requested documentation.

503.04	Waiver Request

Operating Procedures

Waiver Reason	Action
Unresponsive Borrower	Request the Borrower BorrowerPerson who is the obligor per the Note. provide the missing statements. If the Borrower BorrowerPerson who is the obligor per the Note. does not respond after 3 written requests, wait to submit a waiver request via the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. until: for an annual report, 6 months after the due date; or for a quarterly report, the next due date. Include “Unresponsive Borrower” as the waiver condition in the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. . Provide copies of all relevant Borrower BorrowerPerson who is the obligor per the Note. correspondence. Provide any additional requested information.
All Others	Submit a waiver request via the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. if: Your Lender Contract Lender ContractProgram Documents per the Multifamily Selling and Servicing Agreement. does not require collecting 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). operating statements. The Mortgage Loan Documents Mortgage Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. do not permit you to collect, nor require the Borrower BorrowerPerson who is the obligor per the Note. to submit, financial reports. 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 : liquidated in the current quarter (for quarterly reporting waivers), or year (for annual reporting waivers), before the Financial Analysis of Operations submission due date; was delivered per a Forward Commitment Forward CommitmentCommitment to purchase a permanent Mortgage Loan for a to-be constructed or rehabilitated Property. and has not yet converted to a permanent loan; was defeased; has FHA FHAFederal Housing Administration or HUD HUDU.S. Department of Housing and Urban Development risk sharing; is managed by Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s Special Asset Management Special Asset ManagementTeam performing Fannie Mae’s Special Servicing that can be contacted at [email protected]. ; or was acquired by Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! in the current reporting year, and less than 6 months of 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). operating data is available.

Waiver Reason

Action

Unresponsive Borrower

Request the Borrower BorrowerPerson who is the obligor per the Note. provide the missing statements.
If the Borrower BorrowerPerson who is the obligor per the Note. does not respond after 3 written requests, wait to submit a waiver request via the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. until:
- for an annual report, 6 months after the due date; or
- for a quarterly report, the next due date.
Include “Unresponsive Borrower” as the waiver condition in the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. .
Provide copies of all relevant Borrower BorrowerPerson who is the obligor per the Note. correspondence.
Provide any additional requested information.

All Others

Submit a waiver request via the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. if:

Your Lender Contract Lender ContractProgram Documents per the Multifamily Selling and Servicing Agreement. does not require collecting 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). operating statements.
The Mortgage Loan Documents Mortgage Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. do not permit you to collect, nor require the Borrower BorrowerPerson who is the obligor per the Note. to submit, financial reports.
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 :
- liquidated in the current quarter (for quarterly reporting waivers), or year (for annual reporting waivers), before the Financial Analysis of Operations submission due date;
- was delivered per a Forward Commitment Forward CommitmentCommitment to purchase a permanent Mortgage Loan for a to-be constructed or rehabilitated Property. and has not yet converted to a permanent loan;
- was defeased;
- has FHA FHAFederal Housing Administration or HUD HUDU.S. Department of Housing and Urban Development risk sharing;
- is managed by Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! ’s Special Asset Management Special Asset ManagementTeam performing Fannie Mae’s Special Servicing that can be contacted at [email protected]. ; or
- was acquired by Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! in the current reporting year, and less than 6 months of 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). operating data is available.

If you receive operating statements after a waiver was granted, you must promptly submit the Financial Analysis of Operations report (Form 4254 or Form 4254.Seniors).

Section 504	Loan Agreement Compliance

504.01	Generally

Requirements

For 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 , you must

review all required 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. information, and
confirm compliance with the quarterly and annual reporting requirements per the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .

Guidance

You may use the Annual Loan Agreement Certification ( Form 6620 series ) when compiling the required financial reports and information.

504.02	Financial Reports and Information

504.02A	Borrower and Guarantor Notices

Operating Procedures

You:

Will receive an annual list of 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 requiring Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. financial records for the past fiscal year.
Must send the Borrower BorrowerPerson who is the obligor per the Note. and Guarantors GuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. a list of all required financial reports.
Must provide the Borrower BorrowerPerson who is the obligor per the Note. and Guarantors GuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. sufficient time for you to submit certified financial reports:
- for Borrowers BorrowersPerson who is the obligor per the Note. ,
  - within 45 days after the end of each fiscal quarter, and
  - 120 days after the end of each fiscal year; and
- for Guarantors GuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , by June 1.
Must use best efforts to obtain all required reports.
Must promptly submit all Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. financial reports received per Part V, Chapter 5: Surveillance, Section 504.02C: Review Financial Reporting .

504.02B	Borrower Fails to Provide Guarantor Financial Reports

Operating Procedures

You must immediately notify 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. or Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. if:

the Borrower BorrowerPerson who is the obligor per the Note. fails to submit the required Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. financial reports and information by the date required per the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ;
the Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. fails to certify each financial report is true, complete, and accurate in all material respects; or
you believe any financial report or information is materially inaccurate or misleading.

You must provide:

the 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. 30 days to deliver/certify all required financial reports and information; and
Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! copies of all related correspondence with the Borrower BorrowerPerson who is the obligor per the Note. or any Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .

If the Borrower or a Guarantor...	You...
Fails to: timely submit all required information; or respond to at least 3 written notices.	Must request a waiver through: the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. for financials required from the Borrower BorrowerPerson who is the obligor per the Note. ; or Sponsor Financials for financials required from the Guarantors GuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
Is diligently attempting to deliver all required information.	May extend the 30-day period by an additional 30 days.

If the Borrower or a Guarantor...

You...

Fails to:

timely submit all required information; or
respond to at least 3 written notices.

Must request a waiver through:

the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. for financials required from the Borrower BorrowerPerson who is the obligor per the Note. ; or
Sponsor Financials for financials required from the Guarantors GuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .

Is diligently attempting to deliver all required information.

May extend the 30-day period by an additional 30 days.

504.02C	Review Financial Reporting

Operating Procedures

After reviewing the 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. information:

If you determine...

You must...

No additional follow up is required

Submit the certified material through:
- the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. for the Borrower BorrowerPerson who is the obligor per the Note. ; and
- Sponsor Financials for Guarantors GuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
Retain the information in your Servicing File Servicing FileYour file for each Mortgage Loan serviced. .

Additional or supporting information is required

Promptly:
- contact the 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. to request additional information; and
- submit a copy of all financial reporting, explanatory schedules, and other supporting information through
  - the MAMP MAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. for the Borrower BorrowerPerson who is the obligor per the Note. , and
  - Sponsor Financials for Guarantors GuarantorsKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. .
Retain the information in your Servicing File Servicing FileYour file for each Mortgage Loan serviced. .

504.02D	Records

Requirements

For 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 term, your Servicing File Servicing FileYour file for each Mortgage Loan serviced. must include the originals of the following Borrower BorrowerPerson who is the obligor per the Note. and Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. information:

financial records;
certifications and certified material; and
related information and explanatory schedules.

Section 505	Compliance

Requirements

You must:

maintain effective OFAC OFACU.S. Treasury Department, Office of Foreign Assets Control. compliance procedures;
monthly screen:
- 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. , Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and Principals PrincipalsPerson 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,… for Potential Red Flags for Mortgage Fraud and Other Suspicious Activity ; and
- all Persons PersonsLegal 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). per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 310: Compliance ; and
report:
- all unresolved red flags per Part I, Chapter 3: Borrower, Guarantor, Key Principals, and Principals, Section 310: Compliance ; and
- within 24 hours, any Blocked Person Blocked PersonAny Person who is: on the FHFA SCP List; sanctioned or blocked by OFAC; or identified on: HUD's “Limited Denial of Participation, HUD Funding Disqualifications and Voluntary Abstentions List”; or General Services Administration’s “System for Award Management (SAM) exclusion list”… to Lender Assessment Oversight Lender Assessment OversightTeam that can be contacted at [email protected]. .

Section 506	Test Public GuidePage 2026-08-19 14:37

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