Achievement and Other Collateral Agreements: Extensions

A borrower may request an extension of an achievement agreement or of another collateral agreement if it is unlikely to meet the conditions of the agreement before the earn-out or expiration date and additional time would allow the property to meet those conditions. Usually, achievement/collateral agreements are secured by letters of credit (LOCs), but you may encounter agreements that are backed by cash or a guaranty.

As the servicer, you must monitor earn out and expiration dates for achievement/collateral agreements.

The table below lists the key points to consider in reviewing a request to extend an achievement/collateral agreement.

Guide Reference

Multifamily Selling and Servicing Guide
Part V: Servicing and Asset Management, Chapter 3, Section 307

Delegation Criteria

If the borrower does not meet the requirements specified in the achievement/collateral agreement, you may decline the request for an extension. Follow the instructions below under Resolution/Follow-up.

Fannie Mae must approve any request to extend an achievement/collateral agreement.

Caution: It is critical that you begin the review process as early as possible to avoid any situations where the timing forces an undesirable outcome for the borrower. Allow adequate time for the following:

  • If an LOC is held as collateral, you need to review the issuing bank’s rating against the latest Fannie Mae ratings guidelines. Ratings changes [may be an issue.]
  • You may need to engage the borrower's own counsel throughout the process. Be sure to establish that contact early on.
  • You must submit your request to Fannie Mae at a minimum, 30 days before the agreement or LOC expires to allow time for our legal review.

What to Submit

Submit the following to Fannie Mae with your request:

  • Copy of the borrower’s request
  • Copy of the achievement/collateral agreement and all amendments
  • Copy of the most recent LOC, if applicable
  • Certified rent rolls covering the period specified in the agreement
  • Audited operating statement(s) covering the period(s) specified in the achievement/collateral agreement
  • A copy of the guaranty or similar agreement, if a guaranty is being held as additional collateral in connection with the achievement/collateral agreement
  • Any other documentation required by the agreement, if applicable
  • Servicer’s narrative
    • Property name and address
    • Fannie Mae loan number
    • Reason for the request
    • Analysis of the operating statement(s) – if the condition covers three or six consecutive months, provide an analysis for each month
    • The original underwriting analysis
    • The release of collateral analysis, as stated in the achievement/collateral agreement
    • Analysis of the rent roll – if the condition covers three or six consecutive months, provide an analysis for each month
    • Your recommendation

If the loan is in default include that information in your request. Be sure to keep a copy of all the documents in your servicing file.

How to Submit

[email protected].

Structured Facilities*
(Credit Facilities and Bulk Deliveries): [email protected]

Seniors Housing*: [email protected]

Hard Copy (if required by Fannie Mae)
Fannie Mae
Credit Services/Drawer AM
Mailstop 8H-607
3900 Wisconsin Ave. NW
Washington, DC 20016

*Please contact us at these e-mail addresses for requirements specific to these financing types.


Review fee: $5,000 split evenly between you and Fannie Mae

Extension fee: for achievement agreements, Fannie Mae will charge a fee only if the extension is approved; the fee is split evenly between you and Fannie Mae.

Wire any fees due to Fannie Mae to the following account no later than 10 business days after you receive them. Include the type of fee or deposit, property name and Fannie Mae loan number.

ABA Number: 021 039 500
Telegraphic Abbreviation: FNMA/NYC
Account Number: 169220242
Note: Type of fee (Assumption or Partial Release), the Fannie Mae Loan Number and the Property Name.
Attn: Trans code 538 - GL 747669921

Use of Funds

Not applicable


If we approve the request to extend the terms and conditions of the achievement/collateral agreement, you should prepare and submit to Drawer AM an amendment to the achievement/collateral agreement blacklined against the most recent version of the agreement. You do not have delegated authority to execute the amendment to the achievement/collateral agreement.

Achievement Agreements
If we deny the request and the achievement agreement is expiring, follow the instructions in the achievement agreement for paying down the loan. Forward your payoff request to the Drawer AM and Fannie Mae Operations teams at [email protected] and [email protected] for review and approval.

Other Collateral Agreements
If we deny the request, follow the instructions in the agreement and in the letter from Fannie Mae.

Always consult the loan documents, transaction documents, your servicing agreement, the Multifamily Guide and the relevant forms for complete instructions.



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