Get Community Seconds Checklist Community Seconds Checklist

The Community Seconds Checklist is essential for determining compliance with Fannie Mae's guidelines for subordinate mortgage programs. This guide provides clear, step-by-step instructions to help users accurately complete the checklist online.

Follow the steps to fill out the Community Seconds Checklist online.

1. Press the ‘Get Form’ button to access the Community Seconds Checklist and open it in a digital format suitable for editing.
2. Begin filling out the checklist by answering each of the questions regarding the parameters of the subordinate mortgage program carefully. Ensure that you provide concise 'Yes' or 'No' answers to each question.
3. Evaluate the combined loan-to-value ratio for the first and subordinate mortgages and answer accordingly.
4. Check if the provider of the subordinate mortgage meets the criteria listed regarding acceptable providers.
5. Assess whether the subordinate mortgage documents create a lien that precedes the first mortgage.
6. Determine the purpose of the proceeds from the subordinate mortgage to ensure they align with acceptable uses.
7. Verify the payment structure of the subordinate mortgage, particularly if it resembles a balloon payment or exceeds the amortization requirement.
8. Examine the interest rate charged on the subordinate mortgage and compare it to the interest rate of the first mortgage.
9. Confirm if negative amortization is conditionally acceptable under Fannie Mae's guidelines.
10. Review any covenants or restrictions recorded against the property that may impact its use and resale, ensuring they comply with Fannie Mae's policies.
11. Finally, check the terms regarding provider appreciation share and ensure it does not exceed the limits established by Fannie Mae.
12. Once you have completed all sections, make sure to save your changes, and you have the option to download, print, or share the completed form as needed.

Start completing your Community Seconds Checklist online today!