414.04

Required Casualty Loss Property Inspection

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must 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). , take photographs of the damage, and complete a Multifamily Catastrophic Loss Inspection ( Form 4261 ) if:

  • the casualty loss is expected to exceed the lesser of (i) $500,000, or (ii) 20% of the UPB UPBUnpaid Principal Balance 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 as of the date of the casualty; or
  • any of the following conditions exists:
    • a default has occurred and is continuing under the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ;
    • the combination of insurance proceeds and Borrower BorrowerPerson who is the obligor per the Note. funds is insufficient to complete the necessary 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). repairs for restoration to a condition fit for human habitation and meeting all applicable permitting requirements;
    • prior to the commencement of any restoration work, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. determines that, upon completion of the repair and restoration work, 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). will not be capable of generating sufficient income to cover all operating expenses, required Replacement Reserve Replacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. deposits, P&I P&IPrincipal and interest on 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 required payments on any subordinate debt secured by 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). , or will not otherwise meet a 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. or other test required by the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ; or
    • the repair and restoration work will not be completed by the earlier of (i) the Maturity Date Maturity DateDate all Mortgage Loan amounts become fully due and payable per the Loan Documents. , or (ii) within 1 year from the date of the casualty.

The Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. may charge the Borrower BorrowerPerson who is the obligor per the Note. for the cost of the inspection unless expressly prohibited by the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .

An inspection by the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. is optional if the casualty loss is expected to be less than (i) $500,000, or (ii) 20% of the UPB UPBUnpaid Principal Balance , and none of the above conditions exist.  If the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. elects not to 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). , the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must confirm during the next 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, and document in its Servicing File Servicing FileYour file for each Mortgage Loan serviced. , that the repair and restoration work was satisfactorily completed.  If the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. determines that the repair or restoration work was not satisfactorily completed, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must notify 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]. ) in writing, as required by  Part V, Chapter 5: Surveillance .