416.04

Credit Facility Release and Substitution Requests

If permitted by the Master Credit Facility Agreement Master Credit Facility AgreementAgreement evidencing the terms and conditions of a Credit Facility. and other Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , Borrowers BorrowersPerson who is the obligor per the Note. may be allowed to release or substitute collateral.  These requests must follow the provisions of the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. , and approval is not delegated to the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. .

The Borrower BorrowerPerson who is the obligor per the Note. must initiate the release/substitution process by submitting a written request to the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. .  Upon receipt, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must submit a release/substitution request package 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. that includes:

  • the Servicer’s Servicer’sPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. summary of the Borrower's Borrower'sPerson who is the obligor per the Note. release/substitution request, and its recommendation regarding approval of the requested release/substitution;
  • any waiver requests and the Servicer's Servicer'sPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. recommendation for approval of each waiver;
  • when the Borrower BorrowerPerson who is the obligor per the Note. expects the release/substitution to close;
  • whether 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). meets all conditions and compliance tests (e.g., 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.  , 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. , UPB UPBUnpaid Principal Balance , geographic/asset concentration) per the applicable Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. ;
  • the release price and calculations (per the terms of the Master Credit Facility Agreement Master Credit Facility AgreementAgreement evidencing the terms and conditions of a Credit Facility. and other Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. );
  • the Allocable Facility Amount Allocable Facility AmountFor a Credit Facility, the amount of debt allocated to a given Property, used in calculating tests for collateral activity such as releases, substitutions, and additions. of 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). after the release;
  • the amount of the release/substitution fees to be collected;
  • whether a prepayment or advance of funds will occur;
  • the Structured Facilities Monitoring Spreadsheet ( Form 4802 ) showing 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 level and collateral level data for the Structured Transaction both before and after the release/substitution occurs;
  • third-party reports; and
  • any other items required by the Loan Documents Loan DocumentsAll Fannie Mae-approved documents evidencing, securing, or guaranteeing the Mortgage Loan. .

If a Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. or cash collateral is required for the request, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must enter the Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. or cash collateral information in MSFMS MSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .  Any Letter of Credit Letter of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. must comply with  Part I, Chapter 1: Overview, Section 106: Letters of Credit , and original Letters of Credit Letters of CreditLetter of Credit approved by Fannie Mae per Part I, Chapter 2: Mortgage Loan, Section 204: Letters of Credit. must be sent to Multifamily Structured Acquisitions Multifamily Structured AcquisitionsTeam that can be contacted at [email protected]. .

If the request is approved, the Servicer ServicerPrimary Person servicing the Mortgage Loan, including the originator, seller, or a third party. must:

  • submit its payoff calculations to Multifamily Structured Acquisitions Multifamily Structured AcquisitionsTeam that can be contacted at [email protected]. ;
  • release the collateral from the MSFMS MSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. system; and
  • if necessary, release, update, and verify any associated interest rate hedges in MSFMS MSFMSMultifamily Structured Facilities Management System performing collateral delivery and securitization functions for Structured Transactions. .