Residual Sharing Agreement by ylv53705

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									         MODIFIED RISK SUPPLEMENT TO DELEGATED UNDERWRITING
            AND SERVICING MASTER LOSS SHARING AGREEMENT
             FHA RISK SHARING (STANDARD DUS LOSS SHARING)


        This MODIFIED RISK SUPPLEMENT (the "Supplement") to Delegated Underwriting and
Servicing Master Loss Sharing Agreement ("Loss Sharing Agreement") between Fannie Mae, a
corporation organized and existing under the laws of the United States of America, and
________________________________________, a _____________________________, (the
"Lender"), which Loss Sharing Agreement was executed by Lender _________________[month],
_____[day], _________[year], is made by and between Fannie Mae and Lender, effective as of the
date of execution by Fannie Mae.

                                               RECITALS:

        A.    Fannie Mae offers a multifamily mortgage purchase product line called Delegated
Underwriting and Servicing ("DUS"), under which Fannie Mae purchases multifamily mortgage
loans from approved multifamily mortgage lenders that underwrite, originate, sell and service such
mortgage loans.

       B.    Fannie Mae and Lender have previously executed and delivered the Loss Sharing
Agreement, under which Fannie Mae and Lender share in any losses on Mortgage Loans purchased
from Lender by Fannie Mae under DUS or as to which Lender assumed loss sharing obligations
under DUS.

        C.    The Lender has obtained commitment number ____________ from Fannie Mae to
purchase a mortgage loan in the original principal amount of $___________________ to be
originated by Lender to __________________________, a _________________________, as
borrower, and secured by a lien on a multifamily rental housing project located in
___________________________ (the "Modified Risk Mortgage Loan").

       D.      The Modified Risk Mortgage Loan qualifies for FHA Risk Sharing (as provided in
the Multifamily Selling and Servicing Guide).

         E.      Fannie Mae and Lender desire to supplement the Loss Sharing Agreement to (i)
reflect that a portion of the loss on the Modified Risk Mortgage Loan (if any), in the amount of the
FHA Risk Sharing Percentage (as defined below) will be borne by the U.S. Department of Housing
and Urban Development, as a result of FHA Risk Sharing, and (ii) reduce the loss under the Loss
Sharing Agreement to be borne by Lender with respect to the Modified Risk Mortgage Loan.

        NOW, THEREFORE, in consideration of the mutual covenants and undertakings set
forth in this Supplement, and other good and valuable consideration, the receipt and sufficiency
of which are acknowledged, Fannie Mae and Lender incorporate the above recitals and agree as
follows:


Fannie Mae Modified Risk Supplement                                  Form 4575.FHA    07/11 (Page 1)
FHA Risk Sharing (Standard DUS Loss Sharing)
                                                                                     2011 Fannie Mae
       Section 1.01. Definitions.

       (a)     Notwithstanding anything to the contrary in the Loss Sharing Agreement, the
following definition shall apply with respect to the Modified Risk Mortgage Loan:

               FHA Risk Sharing Percentage: Fifty percent (50%).

       (b)     Capitalized terms used but not defined in this Supplement shall have the meanings
assigned to them in the Loss Sharing Agreement.

       Section 1.02. Loss Sharing Formula. The Loss Sharing Formula applicable to the
Modified Risk Mortgage Loan shall be the Loss Sharing provisions set forth in Part VII of the DUS
Guide, as modified by this Supplement, in effect on the Commitment Date for the Modified Risk
Mortgage Loan, notwithstanding any subsequent changes to the Loss Sharing provisions in the
DUS Guide, unless agreed to in writing by Lender and Fannie Mae.

        Section 1.03. Total Lender Loss. Notwithstanding Part VII, Section 102 (Limitation on
Total Lender Loss) of the DUS Guide, the sum of the amounts listed in clauses (i) and (ii) of the
definition of “Total Lender Loss” in Part VII, Section 101 (Total Lender Loss) of the DUS Guide
with respect to the Modified Risk Mortgage Loan may never exceed the amount calculated by
multiplying (a) the original principal balance of the Modified Risk Mortgage Loan by (b) the FHA
Risk Sharing Percentage by (c) the Maximum Lender Loss Percentage (as set forth in Part VII,
Chapter 1, Section 102 of the DUS Guide) for the Loss Level applicable to the Modified Risk
Mortgage Loan.

       Section 1.04. Reimbursement Base. The Reimbursement Base for the Modified Risk
Mortgage Loan shall be the Reimbursement Base calculated in accordance with the provisions of
Part VII of the DUS Guide (utilizing the full Lender Deductible Amount), multiplied by the FHA
Risk Sharing Percentage.

       Section 1.05. Interim Loss Sharing Adjustments. For purposes of Interim Loss Sharing
Adjustments on the Modified Risk Mortgage Loan, the 5% Amount shall be multiplied by the FHA
Risk Sharing Percentage. Lender may request an Interim Loss Sharing Adjustment after 5%
Amount (as reduced by the FHA Risk Sharing Percentage) has been expended for Delinquency
Advances, Servicing Advances and Delinquency Reduction Costs.

       Section 1.06. Lender Deductible Amount. The actual Lender Deductible Amount for the
Modified Risk Mortgage Loan is the Lender Deductible Amount set forth in Part VII of the DUS
Guide multiplied by the FHA Risk Sharing Percentage.

        Section 1.07. Mortgage Loan Certificate. Lender must execute the Mortgage Loan
Certificate attached to this Supplement as Exhibit A in lieu of the Mortgage Loan Certificate
otherwise required by the Agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

Fannie Mae Modified Risk Supplement                                Form 4575.FHA    07/11 (Page 2)
FHA Risk Sharing (Standard DUS Loss Sharing)
                                                                                   2011 Fannie Mae
        IN WITNESS WHEREOF, the parties to this Supplement have caused it to be duly
executed by their duly authorized officers or representatives. This Supplement shall be effective as
of the date of its execution by Fannie Mae.

                                               FANNIE MAE:

                                               By: _____________________________________
                                               Name:
                                               Title:
                                               Date:_____________________

                                               Address:      3900 Wisconsin Avenue, NW
                                                             Washington, DC 20016-2892
                                                             Attn:
                                               Facsimile:
                                               Telephone:


                                               LENDER:

                                               By:______________________________________
                                               Name:
                                               Title:
                                               Date:_____________________

                                               Address:      ______________________________
                                                             ______________________________
                                               Facsimile:
                                               Telephone:




Fannie Mae Modified Risk Supplement                                  Form 4575.FHA    07/11 (Page 3)
FHA Risk Sharing (Standard DUS Loss Sharing)
                                                                                     2011 Fannie Mae
                    EXHIBIT A TO MODIFIED RISK SUPPLEMENT
                (FHA RISK SHARING – STANDARD DUS LOSS SHARING)

                          MORTGAGE LOAN CERTIFICATE
                        (MODIFIED RISK MORTGAGE LOAN
                (FHA RISK SHARING – STANDARD DUS LOSS SHARING)

This Mortgage Loan Certificate (Modified Risk Mortgage Loan – FHA Risk Sharing)("Certificate")
forms an integral part of the Master Loss Sharing Agreement (the "Agreement") between Fannie
Mae and the Lender named below as in effect on the date of the Certificate.

This Certificate is designed to identify the Mortgage Loan described below as a Mortgage Loan to
which the Agreement relates. By delivery to Fannie Mae of the Mortgage Loan identified below,
the Lender agrees that the representations and warranties set forth in the Agreement with respect to
Mortgage Loans shall be applicable to the Mortgage Loan described in this Certificate. Lender
certifies to Fannie Mae that the following description of the Mortgage Loan is true and correct in all
respects.

DESCRIPTION OF MORTGAGE LOAN

Fannie Mae Commitment/Pool Number:                 _______________________________________
Commitment Date:                                   _______________________________________
Borrower:                                          _______________________________________
Project Name:                                      _______________________________________
Original Principal Balance:                        _______________________________________
Gross Note Rate:                                   _______________________________________
Maturity Date:                                     _______________________________________

Lender is delivering this Mortgage Loan with an initial Loss Sharing Level of I.

The Mortgage Loan described above is a Modified Risk Mortgage Loan for purposes of the
Agreement.

                               LENDER:_______________________________
                               a ____________________________________

                               *By: __________________________________
                               Printed Name: ________________________
                               Title: _______________________________
                               Date:___________________________




Exhibit A to Fannie Mae Modified Risk Supplement                  Form 4575.FHA        07/11 (Page A-1)
FHA Risk Sharing (Standard DUS Loss Sharing)
                                                                                      2011 Fannie Mae
*Must be signed by the President or a Vice President or by a General Partner with authority to bind
Lender.




Exhibit A to Fannie Mae Modified Risk Supplement                Form 4575.FHA       07/11 (Page A-2)
FHA Risk Sharing (Standard DUS Loss Sharing)
                                                                                    2011 Fannie Mae

								
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