Section 701
| 701.01 | |
|
|
|
Requirements
To qualify as an MAH MAHProperty that: complies with Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702: MAH Property Eligibility; and is underwritten per Part III, Chapter 7: Multifamily Affordable Housing Properties. 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 , the MAH Property MAH PropertyProperty that: complies with Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702: MAH Property Eligibility; and is underwritten per Part III, Chapter 7: Multifamily Affordable Housing Properties. must:
- comply with Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702: MAH Property Eligibility ; and
- be underwritten per Part III, Chapter 7: Multifamily Affordable Housing Properties .
| 701.02 | |
|
|
|
Requirements
You must:
- reflect the impact of the rent and income restrictions in your underwriting;
- apply the MAH Property
MAH PropertyProperty that:
complies with Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702: MAH Property Eligibility; and
is underwritten per Part III, Chapter 7: Multifamily Affordable Housing Properties.
underwritten 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.
, underwritten LTV
LTVRatio of the actual aggregate UPB of the Mortgage Loan, plus any Pre-Existing Mortgage Loans, plus any Hard Pay Preferred Equity, plus any Mezzanine Financing, to the value of the Property, expressed as a percentage.
, and underwriting Interest Rate Floors per Form 4660
to the:
- LIHTC Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03A: LIHTC ;
- HAP Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03B: HAP Contract ; and
- Rent and Income Restricted Properties Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03C: Properties with Both Rent Restrictions and Income Restrictions ;
- apply the conventional mortgage loan underwritten 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.
, underwritten LTV
LTVRatio of the actual aggregate UPB of the Mortgage Loan, plus any Pre-Existing Mortgage Loans, plus any Hard Pay Preferred Equity, plus any Mezzanine Financing, to the value of the Property, expressed as a percentage.
, and underwriting Interest Rate Floors per Form 4660
to the:
- Rent or Income Restricted Properties Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03D: Properties with Either Rent Restrictions or Income Restrictions ;
- SPP Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03E: Special Public Purpose ; and
- SIA Affordability Type per Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702.03F: Sponsor-Initiated Affordability ; and
- maintain, in your Servicing File
Servicing FileYour file for each Mortgage Loan serviced.
, a copy of any applicable
- Affordable Regulatory Agreement Affordable Regulatory AgreementRecorded or unrecorded regulatory, land use, extended use, restrictive covenant, or similar agreement or restriction that is imposed by a Public Entity, placing rent, income, or other affordability restrictions on the use or occupancy of the Property, but which does not include a HAP Contract. , and/or
- Private Affordability Agreement Private Affordability AgreementRecorded or unrecorded regulatory, land use, extended use, restrictive covenant, agreement, or restriction that is imposed by any non-Public Entity, placing rent, income, or other affordability restrictions on the use or occupancy of the Property. Test Notes added- SV .
| 701.03 | |
|
|
|
Operating Procedures
To commit and Deliver DeliverSubmission of all correct, accurate, and certifiable documents, data, and information with all applicable documents properly completed, executed, and recorded as needed, and any deficiencies resolved to Fannie Mae’s satisfaction. 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 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). subject to rent or income restrictions (even 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). does not qualify as an MAH Property MAH PropertyProperty that: complies with Part III, Chapter 7: Multifamily Affordable Housing Properties, Section 702: MAH Property Eligibility; and is underwritten per Part III, Chapter 7: Multifamily Affordable Housing Properties. ), refer to the Affordable Housing & Tax Relief Data Guidance .