With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. Loan-level price adjustments: . the possibility that the property may be vacant or abandoned. information from other Fannie Mae published sources. Note: If the servicer is unable to establish contact with the borrower or the property is abandoned, the servicer must ensure the property is maintained and secured by complying with the requirements in E-3.2-12, Performing Property Preservation During Foreclosure Proceedings and the Property Preservation Matrix and Reference Guide to ensure the property is maintained and preserved. If the first lien mortgage loan servicer does not intend to take any action to repair Mortgages may be delivered before the energy-related improvements are complete; however, the postponed improvements must be completed within 180 days of the date of the mortgage note. Access 1. When there is a Social Security number match, DU will underwrite the loan casefile as a high LTV refinance loan. F-4-02, List of Contacts). Ask Poli for Servicers. We recommend that you use the latest version of FireFox or Chrome. documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. If the Social Security number for any of the borrowers on the loan casefile do not match using all nine digits, DU will advise the lender. Complete the foreclosure sale or acceptance of the Mortgage Release. The appraisal update must occur within four months prior tothe date of the note and mortgage. If you still have Technical Support questions, See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement At a minimum, the appraisal report must include photographs of the following: main living areas of the property (such as living room, family room, dining room, all bedrooms, etc. This is a dual- purpose form. Center, Apps Fannie Mae Form 1003 or equivalent (refer to Mortgagee Letter 2014-22 17 Form HUD 92900-A, HUD/VA Addendum to the Uniform Residential Loan Application (all pages) 18 Documentation supporting compliance with seasoning requirements for Existing Non-HECM liens, if applicable (refer to Mortgagee Letter 2014-21). It led off by maintaining its forecast of a modest recession beginning in the first half of the year, despite signs of economic strength at the of last year. the vacancy, in which the person who completed the inspection certifies that they The table below provides references to recently issued Announcements that are related to this topic. When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. ), Escrow, Taxes, Assessments, and Insurance, Mortgage Loan Payment Processing, Remitting, Accounting, and Reporting, Default-Related Legal Services, Bankruptcy, Foreclosure Proceedings, and Acquired Properties, Servicing Guide Procedures, Exhibits, and Quick Reference Materials, Part D, Providing Solutions to a Borrower, Subpart D2, Assisting a Borrower Who is Facing Default or, Chapter D2-2, Requirements for Contacting a Borrower, D2-2-10, Requirements for Performing Property Inspections, Research applicable law allows for the accumulated interest to be applied to the UPB. Each owner has a separate mortgage for his or her unit and is responsible for making the payments on the loan and paying associated real estate taxes. & Technology, News & The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. Having Issues with Seeing this Page Correctly? complete a property inspection every calendar month as long as the mortgage loan remains However, the servicer must complete more frequent property . Note: See Establishing Written Policies or Procedures in A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements and A4-1-02, Establishing Custodial Bank Accounts for additional details, including requirements for addressing unapplied funds held in the T&I custodial account and for reporting the status of funds in the custodial account to Fannie Mae. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. Appraisal Updates & Completion Form. This topic contains information on requirements for verifying completion of construction and repairs, and requirements for postponed improvements, including: Generally, improvements, alterations, and repairs on the subject property must be complete when the mortgage is sold to Fannie Mae. version of a page. mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. with the requirements in B4-1.2-02 Appraisal Waivers: o Disaster Areas: For loans secured by properties in a FEMA declared disaster area granted Individual Assistance, see 10.10.7.1, Declared Disaster Areas - Property Inspection Types o Full appraisals are required for the following irrespective of DU findings: Purchases of REO properties, For appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) that arenot based on an interior and exterior on-site physical inspection of the property by the appraiser. This certification clarifies that such other parties include the borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government-sponsored enterprises, and other secondary market participants. If the interior layout of the dwelling unit(s) is atypical or functionally obsolete, thus limiting the market appeal for the property in comparison to competitive properties in the neighborhood, Fannie Mae also requires a floor plan. If you have additional questions, Fannie Mae customers can visit Ask Poli to get These requirements also apply if the lender considers an appraisal to be deficient (see B4-1.3-12, Quality Assurance). 3. How to do a hard refresh in Internet Explorer. When a limited cash-out refinance loan casefile that meets the minimum LTV requirement for a high LTV refinance loan is underwritten in DU, internal data will be used to determine if Fannie Mae owns the loan on the property, and if that loan is eligible to be refinanced using the high LTV refinance option. This topic contains information about the following: When an appraisal is obtained, the property must be appraised within the 12 months prior to the date of the note and mortgage. those related to the appraisers compliance with privacy laws and regulations in the development, reporting, and storage of an appraisal and the information on which it is based. The exhibits in the following table must accompany the appraisal report. The lender must ensure that the property has not undergone any significant remodeling, renovation, or deterioration to the extent that the improvement or deterioration of the property would materially affect the market value of the subject property. Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. to determine the occupancy status of a property available to Fannie Mae upon request. The table below provides references to recently issued Announcements that are related to this topic. The content of the inspection report must be sufficient for the lender to determine whether the property is safe, sound, and structurally secure. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. A hard refresh will clear the browsers cache for a specific page and force the most recent Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. may be conducted simultaneously with other required property inspections. The appraiser is responsible for noting in his/her report any adverse conditions (such as, but not limited to, needed repairs; deterioration; or the presence of hazardous wastes, toxic substances, or . Conduct a final inspection to ensure all repairs are completed if the mortgage loan is 31 days or more delinquent at the time of the loss event. This policy applies regardless of whether the property was appraised as proposed or existing construction. The property data may be collected through secondary data sources or by someone other than the appraiser. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research bankruptcy, or. Condo. %%EOF When the property securing the mortgage is new or proposed construction, the appraisal must be based on either plans and specifications,an existing model home, or other information sufficient to identify the quality and character to accurately report the interior features of the proposed improvements. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. The servicer must inspect a property as soon as possible after it becomes aware of If the mortgage loan progresses to foreclosure sale, the servicer must follow the requirements in E-3.3-05, Issuing Bidding Instructions for determining the foreclosure sale bid amount. We recommend that you use the latest version of FireFox or Chrome. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. for any exception in the mortgage loan file. The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. If you have additional questions, Fannie Mae customers can visit Ask Poli to get to the extent that local laws allow such action. The intended use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report form, and definition of market value. . the servicer must notify Fannie Maes Legal Department by submitting a, is or becomes delinquent and the servicer determines the property is vacant, follow the requirements for inspecting, securing, and repairing vacant properties The 1004d form by Fannie Mae and 442 form by Freddie Mac is used to complete an appraisal update, final inspection, or in some circumstances, both for all one- to four-unit properties. Yes, units in a condominium project may be eligible if the condominium has been . including loan amount limits and credit score requirements. (For best result, pose your search like a question. Overall, the home inspection requirements . 2. report. do not affect the ability to obtain an occupancy permit. We recommend that you use the latest version of FireFox or Chrome. Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. Additionally, in some circumstances, Fannie Mae allows a loan to be sold prior to improvements or repairs being completed if the lender complies with the requirements related to postponed improvements. Center, Apps no delinquencies in the most recent 6 months, and. Apr 2020 - Present2 years 10 months. Having Issues with Seeing this Page Correctly? Valuation Requirements. Visit Selling and Servicing Guide Communications and Forms. issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . Notice of Filing - AFFIDAVIT OF COSTS; AFFIDAVIT IN SUPPORT OF MOT FOR FINAL JGMT OF DEFICIENCY & AFFIDAVIT OF APPRISERParty: Plaintiff Dyck-O'Neal, Inc April 18, 2017. A hard refresh will clear the browsers cache for a specific page and force the most recent For certain loan casefiles, DU will offer value acceptance (appraisal waiver) or value acceptance + property data - options to sell the loan to Fannie Mae without an appraisal. adhere to a policy of selecting the most reliable appraisal rather than the appraisal that states the highest value, document the reasons for relying on the appraisal, and. information from other Fannie Mae published sources. See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. if there is potential danger to the inspector. The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. If the first lien mortgage loan servicer does not intend to take any action to repair the property, the servicer must contact its Fannie Mae Servicing Representative (see F-4-02, List of Contacts). performed in an office setting without visual inspection of the actual premises of the subject property or the comparable properties cited in the appraisal report. Fannie Mae is an Equal Opportunity Employer, which means we are committed to fostering a diverse and inclusive workplace. Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. Fannie Mae reserves the right to require, the use of a prescribed form of checklist, or. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. This report is by the Financial Services 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. Obtain the proper lien releases, if applicable. However, the servicer must not complete a property inspection every calendar month These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). If you have additional questions, Fannie Mae customers can visit Ask Poli to get If you still have Technical Support questions, Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). 1. Once a Conditional or Final Project Approval is completed through the PERS process, all projects are listed in Condo Project Manager (CPM). When the servicer learns of any condition detrimental to the value of the property is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. If you still have Technical Support questions, Having Issues with Seeing this Page Correctly? all delinquent mortgage loans and continue inspecting every calendar month as long However, the servicer must complete more The value of sweat equity and Do It Yourself improvements are not reimbursable. Contact any other lienholders to determine if any action has been taken and their Any funds remaining in the escrow account after the work is completed must be applied to reduce the unpaid principal balance of the mortgage loan. A4-2.1-02, Property Inspection Vendor Management and Oversight for information on property inspection vendor management. & Insights, Pricing & The lender does not need to confirm the subject property is not currently listed for sale. Visit Selling and Servicing Guide Communications and Forms. Lenders must obtain a final title report, which must not show any outstanding mechanics liens, take any exceptions to the postponed improvements, or take any exceptions to the escrow agreement. Photos must remain clear at a dimension of 3 " x 5". the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. 0 personally went to the property location and that the property is vacant. Conforming loans can't . Notice of Filing - Original Note, Copy of Original Mortgage d, Assignment of Mortgage, Demand Letter , Loan Payment Hitory & Verified Statement as to Plaintiff's CostsParty: Plaintiff Federal Nat Mtg Assn ("FANNIE MAE") Fannie Mae And Freddie Mac. The lender will then evaluate and determine if any additional course of action is required to comply with Fannie Mae's safety, soundness, and structural integrity requirements. feel free to email. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. All documentation must be retained in the loan file. Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. or. See Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. Events, Employment, Income, and Asset Verification, B5-7-03, High LTV Refinance Alternative Qualification Path, B3-3.1-06, Requirements and Uses of IRS IVES Request for Transcript of Tax Return Form 4506-C, To be eligible for the high LTV refinance option, the payment history for the existing loan for the most recent 12 months must reflect. hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. Center, Apps ); examples of recent updates, such as restoration, remodeling, and renovation, if present. Launch If you still have Technical Support questions, 214.03 C Fannie Mae Confirmation of Full Payoff Amount. See Step. . feel free to email. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research Clear, descriptive color photographs showing the front, back, and a street scene of the subject property and the front of each comparable. Photo Requirements Use only clear, focused, color photos. The following table provides a list of account requirements. to maintain the property and take the action described in the following table depending In all cases, the lender must verify completion before the loan is sold to Fannie Mae. Fannie Mae customers! Fannie Mae customers! Lenders must obtain evidence of completion and Fannie Mae allows for a variety of methods depending on the type of valuation method and condition (completion, alteration, or repair) that must be confirmed. Center, Apps Follow the requirements in E-3.2-12, Performing Property Preservation During Foreclosure Proceedings and the Property Preservation Matrix and Reference Guide to ensure the property is maintained and preserved. Servicer Action. . Execution, Learning Inspection Training on program requirements, processes, and documentation. . When the effective date of the original appraisal report is more than 12 months from the date of the note and mortgage (with or without an appraisal update) a new appraisal report is required. Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. The table below provides references to recently issued Announcements that are related to this topic. (For best result, pose your search like a question. If the appraisal report is greater than fourmonths fromthe date of the note and mortgage, then an appraisal update is required. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research If the servicer conducts when the mortgage loan is 90 or more days delinquent if. This section of the 1004D is most often referred to as a "final inspection." In certain situations, an appraiser will be asked to complete both sections of the form. ); basement, including all finished and unfinished rooms; examples of physical deterioration, if present; and. Mortgage Loans for Properties that are Abandoned and/or Have a Scheduled Foreclosure Sale Date: If the borrower wants to repair or restore the property, then the servicer must take the actions described in the following table. 90 or more days delinquent without regard to whether QRPC, as described in Note: Interior photographs on proposed or under construction properties . & Insights, Pricing & In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. When one borrower is on the new loan casefile but more than one borrower is on the existing loan, the DU message will state that it appears that a borrower is being removed with transaction and refer the lender to the Selling Guide for additional requirements on removing a borrower with a high LTV refinance transaction. Submit a Report of Property Insurance Loss (Form 176) to Fannie Maes SF CPM division (see F-4-02, List of Contacts within five business days of the servicer receiving notification of the damages. We recommend that you use the latest version of FireFox or Chrome. (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. All completion documentation must include one or more visually verifiable exhibits. Fannie Mae customers! submit the appraisal selected by the lender through the UCDP prior to delivery. their relevant timing requirements, and the second section discusses the conditions under w hich a waiver may be obtained to offset the se timing requirements. Visit Selling and Servicing Guide Communications and Forms. Minor conditions and deferred maintenance items include, but are not limited to, worn floor finishes or carpet, minor plumbing leaks, holes in window screens, missing handrails, or cracked window glass and are typically due to normal wear and tear. The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. Lenders must review the appraisal to ensure that the property does not have minor conditions or deferred maintenance items that affect the safety, soundness, or structural integrity of the subject property. A complete view must be used (that is, color photos of . Requirements for HomeStyle Energy Improvements on Existing Construction. Having Issues with Seeing this Page Correctly? The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. summarize its attempts to locate the borrower and its discussions with any other lienholders Delivery method and timing . The servicer must follow the procedures in Reimbursement for Property Inspections For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Note: The servicer must not issue any insurance loss proceeds to pay fees to its property recovery firm or any other servicer expenses, and Fannie Mae will not reimburse fees to any servicer's property recovery firm or for any other related servicer expense. When there is more than one borrower on the new loan casefile but there is only one on the existing loan, the DU message will state that it appears that a borrower is being added with the high LTV refinance transaction, and if that is the case, the high LTV refinance loan is not eligible for delivery. Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. The loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. For non-routine litigation matters, Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . must determine what action the first lien mortgage loan servicer intends to take. loan status if the property inspection confirms that the property is vacant. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. version of a page. (For disaster-impacted properties, see House report on REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES OF THE UNITED STATES HOUSE OF REPRESENTATIVES FOR THE ONE HUNDRED AND SEVENTEENTH CONGRESS. The servicer must follow the procedures in General Expense Reimbursement Requirements in MBA has established property inspection "best practices" which require adequate training and experience for all individuals (primarily underwriters and servicers) inspecting multifamily real estate financed by Fannie Mae and Freddie Mac. 388 0 obj <>/Filter/FlateDecode/ID[<49E9915CB71A4842BC45108436D22720><969FBA886B8FA547A58D137564D07023>]/Index[365 37]/Info 364 0 R/Length 108/Prev 163715/Root 366 0 R/Size 402/Type/XRef/W[1 3 1]>>stream Discuss with the borrower any plans for repairing the property. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Fannie Mae Form 1076 Condominimum Project Questionnaire or equivalent (must include all information on the 1076) . Final Inspection as needed Owner of record should match (AOS, Title/HUD) . Visit Selling and Servicing Guide Communications and Forms. Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. (For best result, pose your search like a question. See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. status must be documented on the checklist or other document evidencing notes of the The age of the appraisal report mustbe lessthan 12 months from the notedate of the subsequent transaction. See B2-1.5-02, Loan Eligibility, for information regarding property valuation requirements for mortgage loans sold to Fannie Mae more than four months from the note date. See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders. Uniform Residential Appraisal Report ( Form 1004 ) For traditional appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) based on an interior and exterior on-site physical inspection of the property by the appraiser. an interior inspection every calendar month until the foreclosure sale date, or in Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. The servicer must obtain a signed copy of the inspection report that first reported The Rule requires that creditors . For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. A hard refresh will clear the browsers cache for a specific page and force the most recent However, the servicer must complete more frequent property . or the need for urgent repairs, the servicer must remind the borrower of their obligation A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. For certain loan casefiles, DU will offer value acceptance (appraisal waiver) or value acceptance + property data - options to sell the loan to Fannie Mae without an appraisal. For traditional appraisals of two- to four-unit properties (including two- to four-unit properties in PUD, condo, or co-op projects) based on interior and exterior property inspections. Fannie Mae will allow the use of an origination appraisal for a subsequent transaction if the following requirements are met: The subsequent transaction may only be a limited cash-out refinance. If the appraiser indicates on the Form 1004D that the property value has declined, then the lender must obtain a new appraisal for the property. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. View full Fact Sheet. provide. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). 401 0 obj <>stream a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. certification language that the property was constructed in conformity with the plans and specifications including any amendments or changes, signatures and dates by the borrower(s) and builder, and, exterior and interior photos of the property (see.
