MULTIFAMILY ASSET MANAGEMENT DELEGATED

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4636.PR - January 2021

TRANSACTION FORM: PARTIAL RELEASES OF

COLLATERAL

The Borrower may wish to transfer a non-material portion of the Property securing the Mortgage Loan, such as unimproved land not

needed to support the existing multifamily project. The Borrower must obtain Lender consent before granting a partial release of any

collateral. A partial release of collateral may be approved only if permitted by the Loan Documents, the Disclosure Documents (for an MBS

Mortgage Loan), and this Form. The release must satisfy all terms and conditions specified in the Loan Documents and the Disclosure

Documents. If the Loan Documents or Disclosure Documents provide no specific guidance on approving a partial release, then the

provisions of this Form apply. The Servicer is delegated the authority to approve a partial release of collateral only to the extent delegated

in this Form.

If the transfer is being made in lieu of condemnation, the Servicer should submit Form 4636.C in lieu of this Form 4636.PR.

The key points for the Servicer to consider in reviewing a request for a partial release of collateral are set forth below.

Multifamily Selling and

Servicing Guide Reference

Part V: Servicing and Asset Management, Chapter 4

Delegation Criteria

The Servicer is delegated the authority to approve a partial release of collateral provided the Servicer

completes all the Sections of this Form and answers “No” to all the questions in Part III. The Servicer may

attach its own form narrative or memo in place of Section II, provided the memo contains the information

requested in Section II and the Servicer completes the remaining sections of this Form. However, the

Servicer must notify Multifamily Asset Management before appearing in and prosecuting any legal action or

proceeding relating to the partial release, or to settle or compromise any claim in the proceedings.

Fannie Mae approval of the partial release of collateral is required if one or more questions in Section III is

answered “Yes”.

Note: For an MBS Mortgage Loan, any release of collateral is limited by the Loan Documents and by the

Disclosure Documents made to Investors at the issuance of the MBS. For all Mortgage Loans, a collateral

release is limited by the Loan Documents, accounting rules and tax laws, allowing only a non-material

portion of collateral to be released.

Real Estate Considerations

A partial release of collateral increases loan risk as less collateral will support the Mortgage Loan. The

Servicer must consider the following factors.

 What will be the use of the released collateral?

 What is the impact to the Property (i.e., marketability, parking, access, amenities, operations,

health/safety of residents, etc.)?

 Is the released collateral a buffer for a nuisance or negative feature that would now impact the

Property?

 Is the received compensation fair?

 Will the released land be used to build a multifamily property that will compete with the Property,

or another property type that would or might have an adverse impact on the Property?

What to Submit

For both delegated and non-delegated requests, the Servicer must complete the relevant parts of this Form,

and submit:

 a signed copy of this Form, including Servicer narrative or memo, if any;

 copy of the Borrower Request; and

 any other supporting documentation

How to Submit

All delegated and non-delegated requests concerning a partial release of collateral must be submitted as a

Borrower Request through the Multifamily Asset Management Portal (MAMP).

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4636.PR - January 2021

Questions

For questions contact:

General: Multifamily Asset Management;

Structured Transactions (Credit Facilities and Bulk Deliveries): Multifamily Structured Asset Management;

Seniors Housing Properties: Multifamily Seniors Housing Property Asset Management;

Borrower Channel: Multifamily Borrower Channel;

Fannie Mae In-House Counsel: Fannie Mae Multifamily Legal; or

Fannie Mae Outside Counsel: Pillsbury Winthrop Shaw Pittman LLP.

Fees

The Borrower must pay the Servicer a $2,500 review fee. The Servicer may increase or decrease its fee at its

discretion. No Fannie Mae review fees are due.

The Servicer may also seek reimbursement from the Borrower for all reasonable out-of-pocket costs, including

reasonable legal fees incurred by Servicer's counsel.

If Fannie Mae outside counsel is engaged, the Borrower must pay its fee, estimated at $3,000 for most requests

concerning a partial release of collateral. The actual legal fee may be higher or lower, depending on the

ultimate scope of the request and the time necessary to resolve. The Servicer will receive a summary invoice

directly from Fannie Mae outside counsel and must arrange for payment. The Servicer will be apprised of any

likely increases in the estimated review fee. The estimated legal fee must be collected from the Borrower

before engaging Fannie Mae outside counsel.

Legal Documentation

If the request is delegated to the Servicer, the preparation of the legal documentation to effectuate the partial

release of collateral is also delegated to the Servicer. The Servicer is responsible for the preparation or review

of (i) the deed, (ii) Partial Release of Security Instrument, (iii) draft amendments to the Loan Documents, and

(iv) draft date-down endorsement to Fannie Mae's title insurance policy that reflects the partial release of

collateral, and confirms the priority of Fannie Mae's Lien over the portion of the remaining Property.

If the request is not delegated and/or Fannie Mae legal review is needed or requested, Fannie Mae counsel must

be provided with the following:

 the land sale contract and proposed deed;

 draft amendments to the Loan Documents;

 a memorandum reviewing the applicable terms of the Loan Documents in the context of the proposed

transaction;

 copy of the Borrower Request;

 Form 4636.PR;

 verification that the release will not cause the remaining Property or Improvements to be in violation

of any law, including zoning laws;

 a copy of an ALTA survey, site plan, or other drawing depicting the portion of the Property subject to

the partial release in relation to the remaining portion of the Property;

 legal description of the portion of the Property being released, which must match the legal description

in the deed and Partial Release of Security Instrument;

 a draft date-down endorsement to Fannie Mae's title insurance policy that reflects the partial release

of collateral, and confirms the priority of Fannie Mae's Lien over the remaining portion of the Property;

 a description of the source and use of any funds received by the Borrower; and

 for each question in Part III of this Form answered “Yes” by the Servicer, the information requested by

the Comments section, and any supporting documentation.

Document Execution and

Follow-up

For non-delegated requests, Fannie Mae will review the documents and advise the Servicer of any needed

follow-up actions. If Fannie Mae approves the non-delegated request or the Servicer has approved the

delegated request, the instructions below must be followed for executing any required documents. The

Servicer may use its Limited Power of Attorney for documents that Fannie Mae has reviewed and approved.

If the Servicer Has Limited Power of Attorney

If the Servicer has a Limited Power of Attorney permitting the execution of documents relating to the partial

release of collateral, an officer of the Servicer may sign as attorney-in-fact for Fannie Mae. The signature block

must be signed “[Name of Servicer], as Attorney-in-Fact for Fannie Mae.”

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4636.PR - January 2021

If the Servicer Does Not Have Limited Power of Attorney

If the Servicer does not have a Limited Power of Attorney, the documents must be sent for execution to:

Fannie Mae

Midtown Center

1100 15th Street, NW

Washington, DC 20005

Attn: Multifamily Asset Management

Mail Stop 8V-21

A copy of this Form must be included with the request for execution, with instructions on where to return the

executed documents. If the request is time sensitive, electronic versions of the documents may be sent to the

applicable Fannie Mae email box address listed in the “Questions” section of this Form.

The Servicer must record all applicable documents and retain all required documentation, including this

Form, in the Servicing File. Documentation may be kept in electronic form. The Servicer must attach an

electronic copy of any newly executed Loan Documents to the existing request in the MAMP. Executed original

copies of any new or amended Loan Documents should be sent to the following address:

Fannie Mae

Attn: Multifamily Certification Team

Document Delivery Facility (DDF), OB2

13150 Worldgate Drive, Mailstop 5H-2W/01

Herndon, VA 20170

Use of Funds

The Servicer or Borrower must use any funds received from the partial release of collateral according to the

requirements of the Loan Documents and Disclosure Documents. If neither address the use of funds, then

funds received must be used to:

 reimburse the Borrower, Servicer, and Fannie Mae for reasonable, direct costs (including reasonable

attorneys' fees) incurred as a result of the partial release of collateral;

 restore any Property conditions impacted by the partial release of collateral;

 improve the marketability of the Property to lessen any negative impact resulting from the partial

release of collateral;

 place the funds in a special, restricted escrow designated for Property improvements at a later time at

the discretion and direction of the Servicer;

 place the funds in the Replacement Reserve for future Property improvements not included in the

most recent Property Condition Assessment (PCA) ; or

 provided the Mortgage Loan is rated Pass or Pass Watch and no Event of Default has occurred and is

continuing, the Servicer may release funds to the Borrower up to the greater of (i) $25,000, or (ii) 10%

of the current Unpaid Principal Balance of the Mortgage Loan.

The Loan Documents generally prohibit any partial prepayment of the Mortgage Loan. However, if not

expressly prohibited under the Loan Documents, in its sole discretion Fannie Mae may permit a partial

prepayment in accordance with Accepted Servicing Practices. Any partial prepayment will be subject to

applicable Prepayment Premium and fees, as required by the Loan Documents.

Unauthorized Partial

release of collateral

If the Servicer becomes aware that a partial release of collateral occurred without approval from the Servicer

or Fannie Mae, the Servicer must:

 promptly complete Form 4636.PR, and follow the same process as if the partial release of collateral

had not yet occurred; and

 immediately send to the Borrower a Reservation of Rights Letter (Form 4804); and

 submit electronic copies of Forms 4636.PR and 4804 through the MAMP.

Fannie Mae will decide whether to approve the partial release of collateral or declare the Mortgage Loan in

default.

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4636.PR - January 2021

1. Mortgage Loan Information (Include information for any supplemental Mortgage loan)

Servicer

Fannie Mae Loan Number

Property Name

Property Address

Other Fannie Mae Loan Numbers

City

State

Zip

Current UPB of MorgageMortgage Loan(s)

Original Underwritten Loan-to-Value Ratio (LTV) and Underwritten

Debt Service Coverage Ratio (DSCR) of Mortgage Loan:

LTV and DSCR immediately prior to the proposed transaction

LTV

DSCR

LTV

DSCR

LTV and DSCR immediately after the proposed transaction

Most recent appraised value

(Generally the original Appraisal)

Date of most recent appraisal

LTV

DSCR

Current value of the entire property immediately prior to the proposed

transaction

Current value of portion of property to be released immediately prior

to the proposed transaction

Basis for current value of the entire Property (i.e., most recent

Appraisal, Direct Cap Method including Cap Rate and NCF)

Basis for current value of the portion of Property to be released

The LTV and DSCR calculations above must be based on Fannie Mae guidance in Part III of the Guide. The NCF must be based on the most recently-

submitted Form 4254 (or its equivalent), and the NCF must be used in calculating the “immediately prior” and “immediately after” DSCR, and the Direct

Cap Method for deriving the LTV. In determining the “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 market cap rates and sales comparables. If

vacant land which does not generate any income is being released, the DSCR and the LTV immediately prior to the partial release and immediately after

will be the same.

Although unimproved land does not factor into the Fannie Mae calculation to determine the maximum loan size, it does have value for tax and

accounting purposes. If the released collateral is being sold at a market rate in an arms-length transaction, the purchase price should be a good

indication of value. If not, land sales comparables may be used. If the Property is assessed at market rates, the real estate tax assessment may be a good

alternative indication of land value.

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4636.PR - January 2021

2. Transaction Summary

The Servicer may attach its own form narrative or memo in place of Section 2 provided it contains the information requested in Part 2

and the Servicer completes the remaining sections of this form.

1. Briefly describe the proposed transaction and Servicer's recommendation:

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.

5. Briefly describe any other relevant information (if none, answer N/A).

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4636.PR - January 2021

3. Delegation Determination Questions (If any question is answered YES - the request is not delegated to the Servicer)

Questions Response

Guide Reference

or Comments

Is the Mortgage Loan currently rated Substandard or Doubtful on Fannie Mae's

Watchlist?

Yes

If “Yes”, describe how the

proposed partial release of

collateral will affect the

Mortgage Loan risk factors.

Is the Mortgage Loan in either:

(a) Payment Default; or

(b) Performance Default?

Yes

If “Yes,” notify Multifamily

Asset Management

immediately if in Payment

Default. If in Performance

Default (including if the partial

release of collateral was

entered into without Servicer

or Fannie Mae consent), submit

the Form 4636.PR, including

information regarding the

default and actions to cure the

default.

Will the request require an amendment to either the Master Credit Facility Agreement or

Bulk Delivery Agreement? (Applicable only to a Fannie Mae Credit Facility or Bulk

Delivery.)

Yes

If “Yes”, contact Multifamily

Structured Asset Management

for Credit Facilities and Bulk

Deliveries.

The Servicer must send the

completed Form 4636.PR

through the MAMP for review,

and Fannie Mae Counsel will be

engaged.

Does the partial release of collateral violate any term or condition regarding partial

releases of collateral in the Loan Documents, Disclosure Documents (for an MBS

Mortgage Loan) or this Form?

Yes

If “Yes”, describe what

documents permit a partial

release, under what terms and

conditions a partial release is

permitted and what terms and

conditions are violated.

Are the Loan Documents and Disclosure Documents (for an MBS Mortgage Loan) both

silent regarding any partial release of collateral?

Yes

If “Yes”, the request is not

delegated and the Servicer

should follow the guidance in

this Form.

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 before the partial release?

Yes

If “Yes”, submit a copy of the

Borrower's pro forma income

statement and the Servicer's

analysis of the pro forma.

Would the partial release have a material adverse effect on the marketability or

occupancy of the remaining Property?

Yes

If “Yes”, submit a copy of the

most recent Appraisal, market

study, or other documentation

related to the marketability or

occupancy of the Property.

Would there be a material difference (greater than 10%) between the current market

value of the Property and the expected market value of the Property after the partial

release?

Yes

If "Yes", state the difference

and submit a copy of the most

recent Appraisal or value

estimate:

Difference

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4636.PR - January 2021

Would the LTV for the Mortgage Loan after the partial release be higher than the original

Underwritten LTV?

Yes

If “Yes”, submit a copy of the

most recent Appraisal or

documentation related to the

change in Property value.

Would the partial release have a negative effect on the access, visibility, or the storm

water drainage at the Property?

Yes

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.

Would the partial release cause a zoning violation based on the applicable zoning or the

allowable density requirements for the portion of the Property remaining after the partial

release?

Yes

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.

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?

Yes

If “Yes”, submit a summary of

the local ordinances affected

by the partial release and the

Borrower's plan to address

the parking deficiency.

Will the partial release compensation be used for any purpose other than as permitted in

the Loan Documents or by this Form?

Yes

If “Yes”, describe the issues

concerning the partial release

award.

Is the Borrower requesting the release of one or more properties from any cross

collateralized and/or cross defaulted Mortgage Loan, and must release tests associated

with the remaining collateral (i.e., DSCR, LTV, etc.) be met for the release to be

permitted?

Yes

If “Yes”, please describe the

proposed use of the

compensation.

Would the partial release cause the UPB of the Mortgage Loan to exceed 100% of the

value of the real estate (100% LTV)? For Senior Housing Properties, you must calculate

the real estate value in accordance with Footnote 4.

Yes

If “Yes”, please provide the

values for the land and

improvements, goodwill,

business value, intangibles;

and furniture, fixtures and

equipment.

Note: The 10% test is calculated at the time of the release of collateral. The calculation will generally be the value of the partial release award divided

by the current market value of the entire Property immediately prior to the partial release of collateral.

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4636.PR - January 2021

4. Servicer Certification

The Servicer hereby represents and warrants to Fannie Mae that, to the best of its knowledge, the statements made in this Form are

true and correct, and that no material facts have been omitted or misstated.

Signed*

Name

Title

Date

*An electronic signature is acceptable.

Appraisals on Seniors Housing Properties generally have values that include land and improvements, goodwill, business value, intangibles; and

furniture, fixtures and equipment. This LTV test must use only the value attributed to land and improvements. If a new Appraisal is obtained, use the

value attributed to land and improvements in the new Appraisal. If a Direct Cap valuation approach is utilized, you must deduct value attributed to the

total of goodwill, business value, intangibles, and furniture, fixtures and equipment from the Direct Cap approach to calculate the value attributed to

land and improvements. You may use the percentage of total value attributed to land and improvements found in the origination Appraisal to the

current Direct Cap valuation to calculate the current land and improvement value.

For example, if the original Appraisal attributed 85% of the value to land and improvements and 15% of the value to goodwill, business value, intangibles,

and/ furniture, fixtures and equipment; assume the current value of the land and improvements is 85% of your new Direct Cap Value.

Example

Property Information Appraisal for Mortgage Loan Origination Appraisal for Partial Release

NCF $1,929,330 $2,100,000

Cap Rate 6.63% 6.40%

Final Total Value (NCF/Cap Rate) $29,100,000 $32,812,500

Total of Goodwill, Business Value, Intangibles and

and Furniture, Fixtures, and Equipment

$4,365,000

$4,921,875 ($32,812,500 * 15.0%)

Land and Real Property $24,735,000 $27,890,625 ($32,812,500 * 85.0%)

Land and Real Property Percentage of Final Total

Value

85.0%

Mortgage Loan UPB $16,005,000 $16,000,000

LTV (UPB/ Land and Real Property) 64.7% 57.4%

Is LTV < 100% Yes Yes

Answer to Question 15 N/A No