SBL Borrower and Borrower Principal Requirements Guide

This guide outlines the Borrower and Borrower Principal requirements for Small Balance Loan (SBL) Mortgages as specified in Chapter 9SBL of the Multifamily Seller/Servicer Guide. It details the acceptable types of Borrowers, including limited partnerships and real estate investment trusts, while specifying unacceptable entities such as individuals and not-for-profit corporations. The guide also discusses the requirements for Borrower Single Asset Entities (SAE) and Restricted Multiple Asset Entities (Restricted MAE), emphasizing that the Borrower must be organized in the United States and must not be involved in active bankruptcy or foreclosure proceedings. Additionally, it presents the requirements for Borrower Principals and Key Borrower Principals, including residency and experience in managing real estate assets. The guide further details the due diligence requirements for Key Borrower Principals and Guarantors, including financial qualifications and credit score criteria. This comprehensive framework aims to ensure compliance and proper evaluation of Borrowers in the context of SBL Mortgages.