416.11

Springing Debt Service Reserve

If a Master Credit Facility AgreementMaster Credit Facility AgreementAgreement evidencing the terms and conditions of a Credit Facility. includes a Springing Debt Service ReserveSpringing Debt Service ReserveSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. provision, the BorrowerBorrowerPerson who is the obligor per the Note. may be required to fund a Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. .

Fannie Mae will:

  • review all re-underwriting assessments and supporting documents; and
  • notify the ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. of the following additional requirements.
For a Credit Facility... Requirements
Without an existing Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger.
  • No further BorrowerBorrowerPerson who is the obligor per the Note. action is required if the Aggregate Debt Service Coverage RatioAggregate Debt Service Coverage RatioPer the Master Credit Facility Agreement, the ratio (expressed as a percentage) of the aggregate Net Cash Flow for the Mortgage Properties to the Facility Debt Service.  and re-underwriting submission comply with the:
    • Master Credit Facility AgreementMaster Credit Facility AgreementAgreement evidencing the terms and conditions of a Credit Facility. ; and
    • other Loan DocumentsLoan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .
  • The BorrowerBorrowerPerson who is the obligor per the Note. must fund a Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. with an initial DSCR Shortfall AmountDSCR Shortfall AmountPer the Master Credit Facility Agreement, an amount the Borrower must fund into the Debt Service Reserve Account. in the event of a Springing TriggerSpringing TriggerPer the Master Credit Facility Agreement, a defined event that permits the Lender to require the Borrower to fund the Debt Service Reserve Account.  .
With an existing Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger.
  • The BorrowerBorrowerPerson who is the obligor per the Note. must fund any additional DSCR Shortfall AmountDSCR Shortfall AmountPer the Master Credit Facility Agreement, an amount the Borrower must fund into the Debt Service Reserve Account. .
  • The Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. funds may be released if the Debt Service Reserve Release TestDebt Service Reserve Release TestMaster Credit Facility Agreement requirement for a Debt Service Reserve Account to be returned to the Borrower. is met.

The ServicerServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:

  • notify the BorrowerBorrowerPerson who is the obligor per the Note. immediately of any Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. funding requirements;
  • ensure the BorrowerBorrowerPerson who is the obligor per the Note. funds any Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. within 30 days;
  • confirm all Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. deposits and notify Fannie Mae in writing at:
  • submit a BorrowerBorrowerPerson who is the obligor per the Note. Request in the MAMPMAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. to obtain Fannie Mae approval before releasing any Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. funds; 
  • notify the BorrowerBorrowerPerson who is the obligor per the Note. that re-underwriting assessment requirements supersede all activities in Part V, Chapter 5: Surveillance, Section 503: Financial Analysis of Operations; and
  • submit a Monetary Default Borrower Request in the MAMPMAMPMultifamily Asset Management Portal used to submit Property inspections, operating statements, requested modifications, asset management reports, and data corrections for loan or property attributes. if the BorrowerBorrowerPerson who is the obligor per the Note. fails to meet any Debt Service Reserve AccountDebt Service Reserve AccountSpringing Debt Service Reserve per the Master Credit Facility Agreement that a Borrower may be required to fund in the event of a Springing Trigger. funding obligations.