Section 1704
| 1704.01 | |
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Requirements
A Phase I Environmental Site Assessment Phase I Environmental Site AssessmentEnvironmental Site Assessment conducted per the current ASTM E-1527 standard and the resulting report. is not required if:
- an Environmental Professional performs an environmental database review and identifies no
- potential environmental concerns (as defined in ASTM ASTMAmerican Society for Testing Materials E1528 - Standard Practice for Limited Environmental Due Diligence: Transaction Screen), or
- adverse conditions requiring further due diligence;
- the Borrower BorrowerPerson who is the obligor per the Note. enters into an Environmental Indemnity Agreement ( Form 6085 ); and
- you confirm that the Borrower BorrowerPerson who is the obligor per the Note. is appropriately implementing any existing O&M Plans O&M PlansRequired plan for remediating a Recognized Environmental Condition or Business Enivronmental Risk as described in Environmental Due Diligence Requirements (Form 4251). for 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). .
| 1704.02 | |
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Requirements
You must ensure any radon testing required per Environmental Due Diligence Requirements ( Form 4251 ) is performed, unless testing meeting the current requirements of Form 4251 was performed when the Portfolio Mortgage Loan Portfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. was originated.
| 1704.03 | |
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Requirements
Part II, Chapter 3: Legal Compliance, Section 305: Survey does not apply if the:
- new mortgagee title insurance policy includes all title exceptions, including those that would appear based upon the most recent survey provided by the Borrower BorrowerPerson who is the obligor per the Note. (whether it is the original survey for the Portfolio Mortgage Loan Portfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. or a subsequent one);
- Borrower
BorrowerPerson who is the obligor per the Note.
certifies that there have been no changes or improvements to 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).
since the later of the date of the survey
- referenced in the original title policy, or
- most recently completed; 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). inspection report reveals no evidence of new construction or encroachments on the site from construction on adjoining properties.
Requirements
You must:
- Obtain a new Multifamily Underwriting Certificate Multifamily Underwriting CertificateMultifamily Underwriting Certificate (Form 6460 series) , and/or other agreement approved by Fannie Mae that provides underwriting information for a Mortgage Loan. ( Form 6460 series ) from the Borrower BorrowerPerson who is the obligor per the Note. , any Guarantor GuarantorKey Principal or other Person executing a Payment Guaranty, Non-Recourse Guaranty, or any other Mortgage Loan guaranty. , and any 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. .
- Obtain updated copies of the organizational documents of the Borrower BorrowerPerson who is the obligor per the Note. and the 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. , and confirm that the Borrower’s Borrower’sPerson who is the obligor per the Note. organizational structure complies with Part II, Chapter 3: Legal Compliance .
- Confirm that no unauthorized change has been made to the Borrower’s Borrower’sPerson who is the obligor per the Note. organizational structure or documents.
- Obtain a new good standing certificate from the jurisdiction where the Borrower BorrowerPerson who is the obligor per the Note. is organized.
| 1704.05 | |
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Requirements
You must obtain and review new financial statements for all parties relevant to the transaction.
For Small Mortgage Loans Small Mortgage LoansMortgage Loan with an original loan amount less than or equal to $9 million. , you must:
- confirm that the FICO scores of any such individuals comply with Part III, Chapter 9: Small Mortgage Loans, Section 911.02: FICO Scoring ; and
- ensure that the net worth and liquidity complies with Part III, Chapter 9: Small Mortgage Loans, Section 910.06: Net Worth and Liquid Assets .
Guidance
If the Borrower BorrowerPerson who is the obligor per the Note. or any 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. , or Principal PrincipalPerson 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,… submitted financial statements within the past 12 months, then in lieu of new financial statements, you may accept a certification that there has been no material adverse change from the financial condition or credit standing reflected in the financial statements.
| 1704.06 | |
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Guidance
You may elect not to 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). management or agreement per Part II, Chapter 1: Attributes and Characteristics, Section 114: Property Management and Agreement .
| 1704.07 | |
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Requirements
You must ensure the Replacement Reserve Replacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. is funded as follows:
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Then... |
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The Property
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The Borrower BorrowerPerson who is the obligor per the Note. must fully fund the Replacement Reserve Replacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. . |
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The Property
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You must determine the Replacement Reserve Replacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. funding per Part II, Chapter 4: Lease Audits, Inspections, and Reserves, Section 406: Replacement Reserve .
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The Property is located in
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You must determine the Replacement Reserve Replacement ReserveCustodial Account the Borrower funds during the Mortgage Loan term for Replacements. funding per Part II, Chapter 4: Lease Audits, Inspections, and Reserves, Section 406: Replacement Reserve . |
Requirements
You must require T&I T&ITaxes or assessments that may become a Lien on the Property and insurance premiums. escrow deposits for a Tier TierTier 1, Tier 2, Tier 3, or Tier 4 per the Multifamily Underwriting Standards (Form 4660). 2 Choice Refinance Loan Choice Refinance LoanMortgage Loan refinancing a Portfolio Mortgage Loan using streamlined underwriting per Part III, Chapter 17: Choice Refinance Loans. unless Fannie Mae Fannie MaeThis Glossary term Is Created Using Automation in Lower Environments and is used for testing purposes only!! waived the T&I T&ITaxes or assessments that may become a Lien on the Property and insurance premiums. escrow for the Portfolio Mortgage Loan Portfolio Mortgage LoanMortgage Loan purchased by Fannie Mae and held as of a certain date regardless of whether it is a Cash Mortgage Loan or an MBS Mortgage Loan. . If you do not require T&I T&ITaxes or assessments that may become a Lien on the Property and insurance premiums. escrow deposits, then you must comply with Part II, Chapter 4: Lease Audits, Inspections, and Reserves, Section 407: Escrow Requirements for Taxes and Insurance .