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3900 Wisconsin Avenue, NWWashington, DC 20016-2892

MULTIFAMILY ASSET MANAGEMENTDELEGATED 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 Form 4636 Page iDelegation Transaction Form 03/15 © 2015 Fannie Mae

MULTIFAMILY ASSET MANAGEMENTDELEGATED 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

Most recent Appraised Value (generally the original Appraisal):

Date of most recent Appraisal:

LTV and DSCR immediately prior to proposed transaction:

LTV DSCR

LTV and DSCR immediately after proposed transaction:

LTV DSCR

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 Form 4636 Page 1Delegation Transaction Form 03/15 © 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.


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:


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: $_________________


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.


V. EASEMENTS(Part V, Section 410 of the Guide)

YES NO COMMENTS


If “Yes”, describe how the proposed easement will affect the Mortgage Loan risk factors.


If “Yes”, notify Fannie Mae immediately.


4 Would the easement 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 easement?

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 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?


Difference: $_________________

7 Would the existence of the easement 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 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.


VI. CONDEMNATION(Part V, Section 411 of the Guide)

YES NO COMMENTS


If “Yes”, describe how the proposed condemnation will affect the Mortgage Loan risk factors.




4 Is the condemnation a result of or will it cause a zoning violation, health violation, or building code violation?


5 Would the condemnation cause the DSCR of the Mortgage Loan to be less than the lesser of:


(b) the DSCR of the Mortgage Loan immediately before the condemnation?

If “Yes”, submit a copy of the Borrower’s pro forma income statement and the Servicer’s analysis of the pro forma.

6 Would the condemnation have a material adverse affect on the marketability or occupancy of the remaining 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?


Difference: $_________________


8 Would the LTV for the Mortgage Loan after the condemnation be higher than the original Underwritten LTV?


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.


VII. Mineral Rights, Subsurface Oil and/or Gas Leases(Part V, Section 413 of the Guide)

YES NO COMMENTS


If “Yes”, describe how the proposed lease will affect the Mortgage Loan risk factors.




4 Is this lease for mineral rights only (i.e., not also an oil and gas lease)?


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)?


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?


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?


Difference: $_________________


9 Will the signing of the lease cause the Mortgage Loan to be subordinate to the lease?


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.


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.


VIII. CONDOMINIUM CONVERSION(Part V, Section 414 of the Guide)

YES NO COMMENTS


If “Yes”, describe how the proposed condominium mapping will affect the Mortgage Loan risk factors.




4 Is the condominium conversion a result of, or will it cause, a zoning violation, health violation, or building code violation?


5 Would the condominium conversion have a material adverse affect on the marketability or occupancy of the remaining 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?


Difference: $_________________

7 Would the LTV for the Mortgage Loan after the condominium conversion be higher than the Underwritten LTV?



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?


10 In preparation for the condominium conversion, will the Borrower affirmatively decrease occupancy (e.g., suspend leasing of vacant units)?


11 In preparation for the condominium conversion, will the Borrower actively market the units for sale?



IX. TRANSFER/ASSUMPTION(Part V, Section 418 of the Guide)

Guide Reference Yes No

MortgageLoan Status

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

LenderStatus

5. Is the Lender not authorized to sell Mortgage Loans to Fannie Mae?

Lender Contract

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

Part II, Chapter 3


Transfer/Assumption decisions has been revoked?

Property Characteristics

7. Is the Mortgage Loan cross-collateralized 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 Recognized Environmental 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 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?


16. Is the proposed Borrower or Key Principal a Delaware Statutory Trust and any of the following:

N/A


(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%?

Loan Documents

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?


19. If the Mortgage Loan is a Fixed Rate Mortgage Loan, is any proposed Key Principal or Principal a Terminating Fund, and:(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%?


20. Does the proposed Borrower Part IIIC, Chapter 10


ownership structure include Mezzanine Financing or Hard Preferred Equity?

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

Fannie Mae / Lender

Relationship and Status

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

Special Product

Features / Executions

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 Credit Enhancement Mortgage Loan or credit enhancing a variable rate bond transaction?

Part IIIB, Chapter 7

Mortgage Loan Size

28. Is the unpaid principal balance of the Mortgage Loan greater than or equal to $55 million?

N/A

Waivers 29. Is the Servicer requesting any modifications to any Loan 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?

Part V, Section 418.09


(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 non-delegated 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; andPart 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 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.


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?


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:


(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:

Difference: $_________________

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.

9 Will the use conversion increase the If “Yes,” submit a copy of the


Multifamily residential unit count or gross potential rents for the Property by more than 5%?

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?

