3900 Wisconsin Avenue, NW
Washington, DC 20016-2892
MULTIFAMILY ASSET MANAGEMENT
DELEGATED TRANSACTION FORM
Directions
The Servicer must complete only the applicable Sections of this form for any of the following
proposed transactions in accordance with Part V, Chapter 4 of the Guide:

Partial Release;

Easement;

Condemnation;

Oil or Gas Lease;

Condominium Conversion;

Transfer/Assumption; and

Use Conversions.
If the Servicer answers “Yes” to any question on Form 4636, the Servicer is not delegated the
authority to approve the transaction, and must submit to Fannie Mae:

a signed copy of Form 4636, with Sections I, II, III, and any other relevant section
completed; and

any required supporting documents.
If the Servicer answers “No” to all questions in Section IV, V, VI, VII, VIII, IX, or X (for the
appropriate transaction type) of Form 4636, the Servicer is delegated the authority to approve the
transaction as permitted in Part V, Chapter 4 of the Guide.
The Servicer is required to keep a signed copy of the completed Form 4636 in its Servicing File,
and must submit a copy of Form 4636 when submitting documents to be executed by Fannie
Mae, or when final executed documents are delivered to Fannie Mae.
The Servicer must verify on the Lender Dashboard whether the Mortgage Loan is a Securitized
Mortgage Loan.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page i
© 2015 Fannie Mae
MULTIFAMILY ASSET MANAGEMENT
DELEGATED TRANSACTION FORM
I.
LOAN INFORMATION
(Include information for any Supplemental Mortgage Loan)
Servicer:
Property name:
Property address:
Fannie Mae Mortgage Loan
Number:
Current UPB of Mortgage Loan:
Original Underwritten LTV and
Underwritten DSCR of Mortgage
Loan:
LTV
DSCR
LTV and DSCR immediately prior
to proposed transaction:
LTV
DSCR
LTV and DSCR immediately after
proposed transaction:
LTV
DSCR
Most recent Appraised Value
(generally the original Appraisal):
Date of most recent Appraisal:
Basis for current value (i.e., most
recent Appraisal, Direct Cap
Method including Cap Rate and
NOI):
NOTE: The NOI must be based on the most recently-submitted Form 4254 (or its equivalent), and such
NOI must be used in calculating the “immediately prior” and “immediately after” DSCR, and Direct Cap
Method for deriving LTV. In determining “immediately prior” and “immediately after” LTV, the Servicer
may use a broker’s opinion of value, the most recent Appraisal, or the Servicer’s estimate of value using
the Direct Cap Method supported by sales comparables.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 1
© 2015 Fannie Mae
II.
TRANSACTION SUMMARY
(Part II to be completed only if the Servicer answers “Yes”
to any question in Sections IV – IX below)
1
Briefly describe the proposed transaction:
(For a condemnation, please discuss the information specified in Part V, Section 411 of the Guide.)
2
Describe the benefits that will result from the proposed transaction:
3
Describe the risks of the proposed transaction, with specific emphasis on risks related to those
questions that are answered “Yes”:
4
Briefly describe the actions that are being taken by the Servicer and Borrower to mitigate
those risks.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 2
© 2015 Fannie Mae
III.
SERVICER CERTIFICATION
The Servicer hereby represents and warrants to Fannie Mae that, to the best of its knowledge, the
statements made in this Form 4636 are true and correct, and that no material facts have been omitted or
misstated.
Signed:
Name:
Title:
Date:
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 3
© 2015 Fannie Mae
IV.
PARTIAL RELEASES OF SECURITY
(Part V, Section 409 of the Guide)
YES
NO
COMMENTS
1
Is the Mortgage Loan a Securitized
Mortgage Loan?
If “Yes”, describe whether the Loan
Documents permit a partial release,
and under what conditions a partial
release is permitted.
2
Is the Mortgage Loan currently rated
Substandard/Orange or Doubtful/Red on
Fannie Mae's Watchlist?
If “Yes”, describe how the proposed
partial release will affect the
Mortgage Loan risk factors.
3
Is the Mortgage Loan either a Credit Facility
or a Bulk Delivery?
If “Yes”, describe if the Loan
Documents permit a partial release,
and under what conditions a partial
release is permitted.
4
Is the Mortgage Loan in default?
If “Yes”, notify Fannie Mae
immediately.
5
Would the partial release cause the DSCR of
the Mortgage Loan to be less than the lesser
of:
(a) the Underwritten DSCR of the
Mortgage Loan; or
(b) the DSCR of the Mortgage Loan
immediately prior to the partial
release?
If “Yes”, submit a copy of the
Borrower’s pro forma income
statement and the Servicer’s
analysis of the pro forma income
statement.
6
Would the partial release have a material
negative effect on the marketability or
occupancy of the remaining Property?
If “Yes”, submit a copy of the most
recent Appraisal, market study, or
other documentation related to the
marketability or occupancy of the
Property.
7
Would there be a material difference (greater
than 5%) between the current market value
of the Property and the expected market
value of the Property after the release?
If "Yes", state the difference and
submit a copy of the most recent
Appraisal or value estimate:
Difference: $_________________
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 4
© 2015 Fannie Mae
8
Would the LTV for the Mortgage Loan after
the partial release be higher than the
Underwritten LTV?
If “Yes”, submit a copy of the most
recent Appraisal or documentation
related to the change in Property
value.
9
Would the partial release have a negative
effect on the access, visibility, or storm
water drainage at the Property?
If “Yes”, submit a copy of the
survey showing the Property, the
portion that would be released, and
the proposed improvements or use
of the released parcel.
10
Would the partial release have any negative
effect on the zoning or allowable density of
the Property?
If “Yes”, submit a summary of the
local ordinances affected by the
partial release, the Borrower’s plan
to correct the zoning or density
issue, and the Servicer’s opinion
concerning the sufficiency of the
current ordinance and law insurance
coverage.
11
Would the partial release cause a decrease
below the zoning minimum required parking
spaces or have a material negative impact on
the parking availability at the Property?
If “Yes”, submit a summary of the
local ordinances affected by the
partial release, and the Borrower’s
plan to address the parking
deficiency.
12
When the Borrower receives and remits
partial release compensation to the Servicer,
will the resulting partial prepayment be used
for any purpose other than as permitted
under Part V, Section 409 of the Guide?
If “Yes”, please describe the
proposed use of the compensation.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 5
© 2015 Fannie Mae
V.
EASEMENTS
(Part V, Section 410 of the Guide)
YES
NO
COMMENTS
1
Is the Mortgage Loan currently rated
Substandard/Orange or Doubtful/Red on
Fannie Mae's Watchlist?
If “Yes”, describe how the proposed
easement will affect the Mortgage
Loan risk factors.
2
Is the Mortgage Loan either a Credit Facility
or a Bulk Delivery?
If “Yes”, notify Fannie Mae
immediately.
3
Is the Mortgage Loan in default?
If “Yes”, notify Fannie Mae
immediately.
4
Would the easement cause the DSCR of the
Mortgage Loan to be less than the lesser of:
If “Yes”, submit a copy of the
Borrower’s pro forma income
statement and the Servicer’s
analysis of the pro forma income
statement.
(a)
(b)
the Underwritten DSCR of the
Mortgage Loan; or
the DSCR of the Mortgage Loan
immediately prior to the easement?
5
Would the existence of the easement have a
material negative effect on the marketability
of the Property?
If “Yes”, submit a copy of the most
recent Appraisal, market study, or
other documentation related to the
marketability of the Property.
6
Would there be a material difference (greater
than 5%) between the current market value
of the Property and the expected market
value of the Property after the release?
If "Yes", state the difference and
submit a copy of the most recent
Appraisal or value estimate:
Difference: $_________________
7
If “Yes”, submit a copy of the
documentation related to this issue
and the Borrower’s plan to correct
the situation.
Would the existence of the easement have a
negative effect on the health or safety of the
residents, guests, or employees of the
Property?
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 6
© 2015 Fannie Mae
8
Would the easement damage Improvements,
without restoration?
If “Yes”, submit a copy of the
survey showing the easement and
the repairs that will need to be
completed.
9
Would the easement overlap or otherwise
intersect Improvements?
If "Yes", submit a copy of the
survey showing the easement, the
overlaps or intersections, and the
Borrower's plan to correct the
situation.
10
Will the Borrower receive any compensation
for the grant of the easement other than
compensation for the purposes specified in
Part V, Section 410 of the Guide?
If "Yes", specify the compensation
and the proposed application of the
compensation.
11
Will the easement grant access or right to use
amenities located on the Property to tenants
of another property?
If “Yes”, specify:
(a) why the easement should be
granted;
(b) the economics of granting the
easement; and
(c) whether Fannie Mae will have
the right to terminate the
easement at its discretion and if
not, why not.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 7
© 2015 Fannie Mae
VI.
CONDEMNATION
(Part V, Section 411 of the Guide)
YES
NO
COMMENTS
1
Is the Mortgage Loan currently rated
Substandard/Orange or Doubtful/Red on
Fannie Mae's Watchlist?
If “Yes”, describe how the proposed
condemnation will affect the
Mortgage Loan risk factors.
2
Is the Mortgage Loan either a Credit Facility
or a Bulk Delivery?
If “Yes”, notify Fannie Mae
immediately.
3
Is the Mortgage Loan in default?
If “Yes”, notify Fannie Mae
immediately.
4
Is the condemnation a result of or will it
cause a zoning violation, health violation, or
building code violation?
If “Yes”, notify Fannie Mae
immediately.
5
Would the condemnation cause the DSCR of
the Mortgage Loan to be less than the lesser
of:
If “Yes”, submit a copy of the
Borrower’s pro forma income
statement and the Servicer’s
analysis of the pro forma.
(a)
(b)
the Underwritten DSCR of the
Mortgage Loan; or
the DSCR of the Mortgage Loan
immediately before the condemnation?
6
Would the condemnation have a material
adverse affect on the marketability or
occupancy of the remaining Property?
If “Yes”, submit a copy of the most
recent Appraisal, market study, or
other documentation related to the
marketability or occupancy of the
Property.
7
Would there be a material difference (greater
than 5%) between the current market value
of the Property and the expected market
value of the Property after the
condemnation?
If "Yes", state the difference and
submit a copy of the most recent
Appraisal or value estimate:
Multifamily Asset Management
Delegation Transaction Form
Difference: $_________________
Form 4636
03/15
Page 8
© 2015 Fannie Mae
8
Would the LTV for the Mortgage Loan after
the condemnation be higher than the original
Underwritten LTV?
If “Yes”, submit a copy of the most
recent Appraisal or documentation
related to the change in Property
value.
9
Would the condemnation have a negative
effect on the access, visibility, or the storm
water drainage at the Property?
If “Yes”, submit a copy of the
survey showing the Property, the
portion that would be condemned,
and the proposed improvements or
use of the condemned parcel.
10
Would the condemnation have a negative
effect on the zoning or allowable density of
the Property?
If “Yes”, submit a summary of the
local ordinances affected by the
condemnation, the Borrower’s plan
to correct the zoning or density
issue, and the Servicer’s opinion
concerning the sufficiency of the
current ordinance and law insurance
coverage.
11
Would the condemnation cause a decrease
below the zoning minimum required parking
spaces or have a material negative impact on
the parking availability at the Property?
If “Yes”, submit a summary of the
local ordinances affected by the
condemnation and the Borrower’s
plan to address the parking
deficiency.
12
Does the Servicer believe that the proposed
condemnation award is inadequate in
relation to the value of the portion of the
Property to be taken?
If “Yes”, describe the issues
concerning the condemnation
award.
13
Does the Servicer recommend that the
Borrower or Fannie Mae contest the
condemnation action or the proposed award?
If "Yes", describe the reasons for
the recommendation.
14
When the Borrower receives and remits
condemnation compensation to the Servicer,
will the resulting compensation be used for
any purpose other than as permitted under
Part V, Section 411 of the Guide?
If “Yes”, please describe the
proposed use of the compensation.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 9
© 2015 Fannie Mae
VII.
Mineral Rights, Subsurface Oil and/or Gas Leases
(Part V, Section 413 of the Guide)
YES
NO
COMMENTS
1
Is the Mortgage Loan currently rated
Substandard/Orange or Doubtful/Red on
Fannie Mae's Watchlist?
If “Yes”, describe how the proposed
lease will affect the Mortgage Loan
risk factors.
2
Is the Mortgage Loan either a Credit Facility
or a Bulk Delivery?
If “Yes”, notify Fannie Mae
immediately.
3
Is the Mortgage Loan in default?
If “Yes”, notify Fannie Mae
immediately.
4
Is this lease for mineral rights only (i.e., not
also an oil and gas lease)?
If “Yes”, notify Fannie Mae
immediately.
5
Will the lessee, its successors and assigns
have right to use, or access to, or right of
ingress and egress in, over or across, the
surface of the Property for any purpose
whatsoever (such as pipes, access across, or
storage on the Property)?
If “Yes”, notify Fannie Mae
immediately.
6
Will the lease require subsurface rights less
than a minimum 250 feet below the surface
of the Property or within 600 feet from the
closest Property boundary line?
If “Yes”, notify Fannie Mae
immediately.
7
Will the lease have a material adverse affect
on the marketability or occupancy of the
Property?
If “Yes”, submit a copy of the most
recent Appraisal, market study, or
other documentation related to the
marketability or occupancy of the
property.
8
Would there be a material difference (greater
than 5%) between the current market value
of the Property and the expected market
value of the Property after entering into the
lease?
If "Yes", state the difference and
submit a copy of the most recent
Appraisal or value estimate:
Multifamily Asset Management
Delegation Transaction Form
Difference: $_________________
Form 4636
03/15
Page 10
© 2015 Fannie Mae
9
Will the signing of the lease cause the
Mortgage Loan to be subordinate to the
lease?
If “Yes”, notify Fannie Mae
immediately.
10
Would the oil or gas well structure have a
negative effect on the access, visibility or the
storm water drainage at the Property?
If “Yes”, submit a copy of the
survey showing the Property and the
location of the impacted area.
11
Would the proposed lease have a negative
effect on the zoning or allowable density of
the Property?
If “Yes”, submit a summary of the
local ordinances affected by the
proposed lease, the Borrower’s plan
to correct the zoning or density
issue, and the Servicer’s opinion
concerning the sufficiency of the
current ordinance and law insurance
coverage.
12
Would the proposed lease cause a decrease
below the zoning minimum required parking
spaces or have a material negative impact on
the parking availability at the Property?
If “Yes”, submit a summary of the
local ordinances affected by the
proposed lease and the Borrower’s
plan to address the parking
deficiency.
13
Will the lease facilitate drilling, storage, or
processing of oil or gas on any property that
is adjacent to the Property?
If “Yes”, describe Borrower’s plans
to protect the health and safety of
tenants, guests, and employees, and
the value of the Property.
14
Is there an absence of a provision in the lease
that requires the lessee to indemnify and
hold harmless the Borrower, as lessor, for
any damage to the Property or any other
damage or liability caused directly or
indirectly as a result of the drilling?
If “Yes”, describe any plan to
provisions mitigating any loss that
might occur as a result of the
drilling.
15
Will the lease subject the Borrower to any
liability because of damages caused directly
or indirectly by the drilling activities?
If “Yes”, describe any provisions
mitigating Borrower’s liability as
owner of the Property.
16
Does the lease or the request to lease violate
any federal state or local regulation related to
oil and gas exploration?
If “Yes”, describe steps to ensure
that the lease complies with federal,
state, and local laws for oil and gas
exploration.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 11
© 2015 Fannie Mae
17
Will the lease be executed by any other
person other than the authorized general
partner (or managing member or officer) of
the Borrower?
If "Yes", describe the reasons for
the recommendation.
18
Will the Borrower receive any compensation
for the granting of the lease other than
compensation for the purposes specified in
Part V, Section 413 of the Guide?
If "Yes", specify the compensation
and the proposed application of the
compensation.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 12
© 2015 Fannie Mae
VIII. CONDOMINIUM CONVERSION
(Part V, Section 414 of the Guide)
YES
NO
COMMENTS
1
Is the Mortgage Loan currently rated
Substandard/Orange or Doubtful/Red on
Fannie Mae's Watchlist?
If “Yes”, describe how the proposed
condominium mapping will affect
the Mortgage Loan risk factors.
2
Is the Mortgage Loan either a Credit Facility
or a Bulk Delivery?
If “Yes”, notify Fannie Mae
immediately.
3
Is the Mortgage Loan in default?
If “Yes”, notify Fannie Mae
immediately.
4
Is the condominium conversion a result of,
or will it cause, a zoning violation, health
violation, or building code violation?
If “Yes”, notify Fannie Mae
immediately.
5
Would the condominium conversion have a
material adverse affect on the marketability
or occupancy of the remaining Property?
If “Yes”, submit a copy of the most
recent Appraisal, market study, or
other documentation related to the
marketability or occupancy of the
Property.
6
Would there be a material difference (greater
than 5%) between the current market value
of the Property and the expected market
value of the Property after the condominium
conversion?
If "Yes", state the difference and
submit a copy of the most recent
Appraisal or value estimate:
Would the LTV for the Mortgage Loan after
the condominium conversion be higher than
the Underwritten LTV?
If “Yes”, submit a copy of the most
recent Appraisal or documentation
related to the change in Property
value.
7
Multifamily Asset Management
Delegation Transaction Form
Difference: $_________________
Form 4636
03/15
Page 13
© 2015 Fannie Mae
8
Would the condominium conversion have a
negative effect on the zoning or allowable
density of the Property?
If “Yes”, submit a summary of the
local ordinances affected by the
conversion, the Borrower’s plan to
correct the zoning or density issue,
and the Servicer’s opinion
concerning the sufficiency of the
current ordinance and law insurance
coverage.
9
In preparation for the condominium
conversion, will the Borrower renovate units
or common areas?
If “Yes”, notify Fannie Mae
immediately.
10
In preparation for the condominium
conversion, will the Borrower affirmatively
decrease occupancy (e.g., suspend leasing of
vacant units)?
If “Yes”, notify Fannie Mae
immediately.
11
In preparation for the condominium
conversion, will the Borrower actively
market the units for sale?
If “Yes”, notify Fannie Mae
immediately.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 14
© 2015 Fannie Mae
IX.
TRANSFER/ASSUMPTION
(Part V, Section 418 of the Guide)
Guide Reference
1.
Is the Mortgage Loan in either:
(a) Payment Default; or
(b) Performance Default?
Loan Documents
2.
Is the Mortgage Loan currently
rated Substandard/Orange,
Doubtful/Red, or Loss/Red?
Part V, Chapter 6
3.
Is the Mortgage Loan a Recourse
Mortgage Loan1?
Loan Documents
4.
Is the current DSCR less than
1.35x or the LTV greater than
65%, and is the Mortgage Loan
either:
(a) a Primary Risk DUS
Mortgage Loan where the
Allocable Percentage is less
than 50% and the Mortgage
Loan has a Level II or Level
III Loss Level?; or
(b) a Non-DUS Secondary Risk
Mortgage where the initial
loss sharing coverage has
been consumed and the
Mortgage Loan has converted
to a Primary Risk Mortgage
Loan?
Part II, Chapter 6
5.
Is the Lender not authorized to sell
Mortgage Loans to Fannie Mae?
Lender Contract
Mortgage
Loan Status
Lender
Status
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Yes
No
Page 15
© 2015 Fannie Mae
6.
If the Lender is authorized to sell
Mortgage Loans to Fannie Mae
pursuant to its Lender Contract:
(a) Is the Lender on Pre-Review
status for new originations?
(b) Is the Mortgage Loan
governed by a Lender
Contract which does not
delegate Transfer/Assumption
decisions to the Servicer?
(c) Has the Lender been notified
that its delegation for
Transfer/Assumption
decisions has been revoked?
Part II, Chapter 3
7.
Is the Mortgage Loan crosscollateralized with other real estate
or cross-defaulted with another
Mortgage Loan
Loan Documents
8.
Is the Mortgage Loan subject to a
due on sale/transfer or right of first
refusal provision?
Loan Documents
9.
Is the current DSCR less than
1.00x?
Part V, Chapter 4
10. Does the Property have an
inspection rating of 4 or 5 (based
on Fannie Mae Forms 4260 or
4262, or their equivalent)?
Part V, Chapter 4
11. Does the Lender have any
knowledge that the Property has a
Property
Recognized Environmental
Characteristics
Condition not identified at the
Mortgage Loan Origination Date?
Part IIIA, Chapter 3
12. Is the Mortgage Loan secured by a
Cooperative Property?
Part IIIB, Chapter 8
13. Is the Mortgage Loan secured by a
Seniors Housing Property that is
Tier 2 based on the current DSCR
and LTV?
Part IIIB, Chapter 5 and
Underwriting Standards
(Form 4660)
14. If the Mortgage Loan is structured
using a Maryland Indemnity Deed
of Trust (“IDOT”), is any party
requesting:
(a) a release of funds previously
escrowed for potential
recordation tax liability with
Part IIIA, Chapter 4
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 16
© 2015 Fannie Mae
respect to the IDOT structure,
or
(b) the elimination of the IDOT
structure?
Borrower /
Key Principal /
Principal –
Eligibility and
Structures
15. Does ACheck provide a “Do Not
continue processing” response for
the proposed Borrower, Key
Principal, Principal, or Guarantor?
Part IIIA, Chapter 4
16. Is the proposed Borrower or Key
Principal a Delaware Statutory
Trust and any of the following:
(a) the current DSCR is less than
1.35x or the LTV is greater
than 65%;
(b) the Servicer is not escrowing
for either (i) monthly
Replacement Reserves; or
(ii) an upfront fund equal to at
least 2 years of annual
Replacement Reserves as
determined by the Lender’s
approved PCA report; or
(c) the Servicer is not escrowing
for real estate taxes and
insurance impounds?
17. If a Guaranty of Non-Recourse
Obligations (or similar document)
was not executed in connection
with the origination of the
Mortgage Loan, is the current
DSCR less than 1.35x or is the
LTV greater than 65%?
18. If the current UPB is less than or
equal to $3 million, is
(a) the FICO score for any
individual Borrower, Key
Principal or Principal less than
620; or
(b) the average FICO score for all
such Borrowers, Key
Principals and Principals less
than 680?
N/A
19. If the Mortgage Loan is a Fixed
Rate Mortgage Loan, is any
proposed Key Principal or Principal
a Terminating Fund, and:
Part IIIA, Chapter 4
Multifamily Asset Management
Delegation Transaction Form
Loan Documents
Part IIIA, Chapter 4
Form 4636
03/15
Page 17
© 2015 Fannie Mae
(a) the Terminating Fund is not
organized in a State that
requires the orderly
dissolution of investment
funds, such as Delaware or
Illinois, and
(b) the Mortgage Loan will have
either (i) an Underwritten
DSCR less than 1.30, or (ii) an
LTV greater than 70%?
Fannie Mae /
Lender
Relationship
and Status
Special
Product
Features /
Executions
20. Does the proposed Borrower
ownership structure include
Mezzanine Financing or Hard
Preferred Equity?
Part IIIC, Chapter 10
21. Does the proposed Borrower, or any
Key Principal or Principal have a
report of suspicious activity, for
which a “Red Flag” was or should
be reported to Fannie Mae or filed
by Lender pursuant to Lender’s
Bank Secrecy Act or Anti Money
Laundering compliance programs?
Part IIIA, Section 409
22. Is the Mortgage Loan a Conflict
Mortgage Loan?
Part II, Section 505.02
23. Does the Mortgage Loan have a
Fannie Mae Equity Interest²?
Footnote 2 of this form
24. Is the Mortgage Loan a Structured
ARM Loan?
Part IIIC, Chapter 6
25. Is the Mortgage Loan a Forward
Transaction that has not yet
converted to a permanent Mortgage
Loan?
DUS Guide Part XV,
Chapter 6
26. Is the Mortgage Loan a Credit
Facility or a Bulk Delivery?
Part IIIC, Chapter 11
27. Is the Mortgage Loan a variable rate Part IIIB, Chapter 7
Credit Enhancement Mortgage Loan
or credit enhancing a variable rate
bond transaction?
Mortgage
Loan Size
Waivers
28. Is the unpaid principal balance of
the Mortgage Loan greater than or
equal to $55 million?
N/A
29. Is the Servicer requesting any
modifications to any Loan
Part V, Section 418.09
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 18
© 2015 Fannie Mae
Documents pertaining to the
Transfer/Assumption Documents
other than:
(a) modifications solely to
identify the proposed
Borrower or Key Principal;
(b) the execution of a new
Guaranty, or
(c) the addition of pre-published
forms for an approved
Borrower structure?
(Note: if “Yes”, submit a memorandum
summarizing the requested changes,
together with a blackline of the
Assumption and Release Agreement and
any other modification documents.)
30. Is the Servicer requesting any nondelegated waivers to the Guide
referenced in the next column?
Part IIIA, Chapter 3:
 Section 318 Replacement
Reserves;
 Section 319 - Escrow
requirements for Real
Estate Taxes and
Insurance;
 Section 322
(Property and
Liability Insurance);
Part IIIA, Chapter 4 - The
Borrower; and
Part V, Section 418 Transfers/Assumptions
31. Is the Mortgage Loan credit
enhancing a tax exempt Bond
transaction?
(Note: If “Yes”, follow submission
requirements for Credit
Enhancement Mortgage Loans.)
Part V – Chapter 4,
Section 418.07
1 Recourse Mortgage Loan: A Mortgage Loan for which the Borrower is personally liable in all events for
repayment (excluding the liability limited solely pursuant to a Guaranty of Non-Recourse Obligations or its
equivalent unless recourse has been triggered by a prior default).
2 Fannie Mae Equity Interest: any transaction in which Fannie Mae (a) is a limited partner of a limited
partnership, or a member of a limited liability company that invests in either (i) an operating entity that owns a
Property, or (ii) an investment vehicle or “fund” that acquires an equity interest in an operating entity that owns a
Property, whether as a limited partnership, limited liability company or any other ownership structure; (b) itself or
through a joint venture, directly or indirectly, provides mezzanine loan funds to the equity owner of a Borrower
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
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© 2015 Fannie Mae
secured by a pledge of such equity interest; or (c) itself or through a joint venture, directly or indirectly, acquires a
preferred equity interest in a Borrower, which preferred equity interest would entitle the preferred equity holder to
assume control of the Borrower under certain conditions prescribed in the Borrower’s organizational documents.
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
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© 2015 Fannie Mae
X.
USE CONVERSIONS
(Part V, Section 414, of the Guide)
YES
NO
COMMENTS
1
Is the Mortgage Loan currently rated
Substandard/Orange or Doubtful/Red?
If “Yes,” describe how the proposed
change will affect the Mortgage
Loan risk factors.
2
Is the Mortgage Loan a Credit Facility or a
Bulk Delivery?
If “Yes,” submit a copy of the
completed Form 4636 to
[email protected].
3
Is the Mortgage Loan a secured by a Seniors
Housing Property?
If “Yes,” submit a copy of the
completed Form 4636 to
[email protected].
3
Is the Mortgage Loan in either:
(a) Payment Default; or
(b) Performance Default?
If “Yes,” notify Drawer AM
immediately.
4
Will the use conversion cause the Mortgage
Loan DSCR to fall below the lesser of:
(a) the Underwritten DSCR of the
Mortgage Loan; or
(b) the DSCR of the Mortgage Loan
immediately prior to the use
conversion?
If “Yes,” submit a copy of the
Borrower’s pro forma income
statement and the Servicer’s
analysis of the pro forma income
statement.
5
Will the use conversion have a material
adverse effect on the occupancy or
marketability of the Property?
If “Yes,” submit a copy of the most
recent Appraisal, market study, or
other documentation related to the
marketability of the Property.
6
Will there be a material difference (greater
than 5%) between the current market value
of the Property and the expected market
value of the Property after the use
conversion?
If "Yes," state the difference, and
submit a copy of the most recent
Appraisal or value estimate:
7
Will the use conversion have a negative
effect on the health or safety of the residents,
guests, or employees of the Property?
If “Yes,” submit a copy of the
documentation related to this issue
and the Borrower’s plan to correct
the situation.
8
Will the use conversion eliminate or damage,
without restoring or replacing, the Leasing
Office, Clubhouse or any Multifamily
residential units on the Property?
If “Yes,” submit a description of the
specific portion of the property to be
eliminated or damaged, and specify
why the use conversion should be
approved.
Multifamily Asset Management
Delegation Transaction Form
Difference: $_________________
Form 4636
03/15
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© 2015 Fannie Mae
9
Will the use conversion increase the
Multifamily residential unit count or gross
potential rents for the Property by more than
5%?
If “Yes,” submit a copy of the
Borrower’s pro forma income
statement and the Servicer’s
analysis of the pro forma income
statement.
10
Will the use conversion eliminate or replace
an existing, popular resident amenity with an
amenity that is not likely to be used by the
residents?
If “Yes,” specify why the use
conversion should be approved.
11
Will the use conversion replace existing
Multifamily residential space (units or
amenities) with commercial leased space
(i.e. retail, office, industrial, hotel, etc.)?
If “Yes,” submit a summary of the
planned change including the
number of units, square footage, and
total rents of the replaced
Multifamily space and the proposed,
new commercial Leased space.
12
Will the use conversion have any negative
effect on the Property’s compliance with the
applicable zoning or allowable density
requirements?
If “Yes,” submit a summary of the
local ordinances affected by the
change, the Borrower’s plan to
correct the zoning or density issue,
and the Servicer’s opinion
concerning the sufficiency of the
current ordinance and law insurance
coverage.
13
Will the use conversion cause a decrease
below the minimum required parking spaces
under applicable zoning requirements, or
have a material negative impact on the
parking availability at the Property?
If “Yes,” submit a summary of the
local ordinances affected by the
change, and the Borrower’s plan to
address the parking deficiency.
14
Has the use conversion already occurred
without the consent of the Servicer or Fannie
Mae?
If “Yes,” submit a copy of the
completed Form 4636 to
[email protected].
Multifamily Asset Management
Delegation Transaction Form
Form 4636
03/15
Page 22
© 2015 Fannie Mae