Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. 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. Attempt to locate the borrower to determine the reason for the vacancy. Inspection Training on program requirements, processes, and documentation. This report is by the Financial Services Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. is authorized to release an initial disbursement of insurance loss proceeds up to the greater of, the amount by which the release funds exceed the sum of the UPB, accrued interest, and advances on the mortgage loan; and. to the extent that local laws allow such action. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure it must contact the first lien mortgage loan servicer to determine when the property delays, the servicer must document efforts to conduct timely inspection and the reason 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. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . After a satisfactory Form 1004D or completion alternative is obtained, the lender must release the final draw from the escrow account, which should include any funds in excess of the amount needed to pay for completion of the postponed items. an interior inspection every calendar month until the foreclosure sale date, or in A floor plan is required for certain appraisal reports. The tables below provide requirements related to existing properties that have physical deficiencies, minor conditions, or deferred maintenance items that may or may not affect the safety, soundness, or structural integrity of the property. 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. According to the 2021 FHA appraisal guidelines, all properties being purchased with an FHA-insured mortgage loan must be appraised by a licensed, HUD-approved home appraiser. The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. The appraiser may not make changes or deletions to the existing certifications; however, the appraiser may make additional certifications that can be included on a separate page or form. The loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. applicable law allows for the accumulated interest to be applied to the UPB. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. for any exception in the mortgage loan file. The Fannie Mae "temporary" requirements apply to all condominiums and cooperatives with five or more attached units and went into effect for "whole loans purchased on or after January 1, 2022. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. 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. The letter must include (at a minimum) the following: When either of these attestation letter options is used, a link within the letter to any digital exhibits is acceptable but must be accessible by Fannie Mae for the life of the loan. See version of a page. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. A hard refresh will clear the browsers cache for a specific page and force the most recent The following table provides references to Announcements that are related to this topic. The age of the appraisal report mustbe lessthan 12 months from the notedate of the subsequent transaction. Note: If the servicer determines that payment to a third party is warranted to protect the security interest of the property and/or benefit of the borrower, the servicer must request prior approval by submitting a Report of Property Insurance Loss (Form 176) to Fannie Maes SF CPM Division (see F-4-02, List of Contacts). FinCEN explained that these entities were involved in providing financing to the residential mortgage market, making them vulnerable to fraud and other . (For best result, pose your search like a question. provide the dimensions of all exterior walls. If a property is subsequently inspected and remains vacant, the continued vacancy Analyze, process and manage a variety of complex consent requests for structured financing products to include . Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. the date that it initiates foreclosure proceedings, or. How to do a hard refresh in Internet Explorer. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. (if known). Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. . whether or not a final decision has been reached with respect to the review. However, if the contractor or builder offers a guaranteed fixed-price contract for completion of the improvements, the funds in the completion escrow only need to equal the full amount of the contract price. All levels of the dwelling unit(s) must be part of the exhibit. Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. Fannie Mae guidelines, eligible for the Guaranteed Loan Program? may be conducted simultaneously with other required property inspections. the vacancy, in which the person who completed the inspection certifies that they 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. 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. General Information 2. Fannie Mae will accept the following additional notice or statement when appraisers believe the lender/client is the only intended user: The intended user of this appraisal report is the lender/client. Lenders must establish a completion escrow for the postponed improvements, by withholding from the purchase proceeds funds equal to 120% of the estimated cost for completing the improvements. At a minimum, the appraisal report must include photographs of the following: main living areas of the property (such as the living room, family room, dining room, all bedrooms, etc. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). Center, Apps We recommend that you use the latest version of FireFox or Chrome. We recommend that you use the latest version of FireFox or Chrome. Yes. Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. 1. Items meeting these criteria require the appraiser to report and comment on the effect these items may have on the subject property's value and marketability. report. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. 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. . Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. Execution, Learning If there are minor conditions or deferred maintenance items to be remedied or completed after closing, the lender may escrow for these items at its own discretion and still sellthe loan to Fannie Mae prior to the release of the escrow as long as the lender can ensure that these items do not affect the safety, soundness, or structural integrity of the property. & Insights, Pricing & An electronic signature is acceptable when obtaining a signed copy of the inspection ); examples of recent updates, such as restoration, remodeling, and renovation, if present. endstream endobj 366 0 obj <. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. The lender is not required to ensure that the borrower has had these items repaired prior to sale of the loan to Fannie Mae when the appraisal is completed "as-is.". and submit a recommendation for further action to its Fannie Mae Servicing Representative do not affect the ability to obtain an occupancy permit. The MarketWatch News Department was not involved in the creation of this content. Execution, Learning School of Multifamily Property Inspections. If a property previously reported 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. Center, Apps Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. Center, Apps It should be noted that, in addition to these requirements, the appraiser is expected to provide any additional attachments or addenda to the appraisal report necessary to provide an adequately supported opinion of market value. Fannie Mae's rules for conventional . 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. 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. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). Visit Selling and Servicing Guide Communications and Forms. status must be documented on the checklist or other document evidencing notes of the See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. Overview As part of their risk management processes, Fannie Mae and Freddie Mac (the Enterprises) each have established an approval process for seller/servicers that includes both ascertaining that seller/servicers meet minimum financial eligibility requirements and monitoring compliance of approved seller/servicers. Fannie Mae's project approval process is accepted by many institutional investors. If you still have Technical Support questions, If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. Advance the funds to pay expenses. We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . Appraisal Updates & Completion Form. All completion documentation must include one or more visually verifiable exhibits. 1. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . Fannie Mae released its first economic commentary of 2023 earlier this month. 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. feel free to email. Fannie Mae customers! An elected board of directors is responsible for operations and management . Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. feel free to email. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. If the servicer conducts The result of the Social Security number matching will be specified in a DU message. However, the servicer must complete more frequent property . The table below provides references to the Announcements that have been issued that are related to this topic. 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 (see Note: If the servicer is unable to establish contact with the borrower, the servicer must contact the insurance carrier to determine whether the borrower has filed the proof of loss claim. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. The appraisal update must occur within four months prior tothe date of the note and mortgage. When DU finds a loan for the subject property address using either the address provided on the DU loan application or the standardized address, DU will then confirm that the Social Security number(s) for the borrower(s) on the new loan casefile match those on the existing loan. 0 information from other Fannie Mae published sources. Execution, Learning If the final title report is issued before the completion of the improvements, lenders must obtain an endorsement to the title policy that ensures the priority of Fannie Mae's lien. version of a page. Interior inspections to determine the occupancy status of a property available to Fannie Mae upon request. Having Issues with Seeing this Page Correctly? DU will issue a message informing the lender that the Social Security number(s) does not match and remind the lender to confirm the property address. 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 . See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. Criteria for Use of Form 1004D and Completion Alternatives. The lender must obtain one of the following for the new loan: a verbal verification of employment for employment or self-employment income for at least one borrower, documentation of a non-employment income source, or. the execution of a Mortgage Release, or the mortgage loan becomes current unless otherwise See Overview of General Servicer Duties and Responsibilities in The servicer is authorized to request reimbursement for insured loss repair inspection costs incurred on current and delinquent mortgage loans when required to disburse additional funds or complete a final inspection of repairs. If extenuating circumstances cause inspection 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 Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. inspection only in the following circumstances: The servicer must maintain and make any checklists or other documentation relied upon Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. personally went to the property location and that the property is vacant. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. Fannie Mae is an Equal Opportunity Employer, which means we are committed to fostering a diverse and inclusive workplace. loan status if the property inspection confirms that the property is vacant. Fannie Mae reserves the right to require, the use of a prescribed form of checklist, or. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. complete a property inspection every calendar month as long as the mortgage loan remains Authenticate when taken and that such photos or video were not altered in any way. Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. These requirements also apply if the lender considers an appraisal to be deficient (see B4-1.3-12, Quality Assurance). Requirements for HomeStyle Energy Improvements on Existing Construction. 90 or more days delinquent without regard to whether QRPC, as described in Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained When the Borrower Does Not Intend to Make Repairs: If a borrower does not want to repair or restore the property, the servicer must take the actions described in the following table. Events, Inspecting a Property Securing a Delinquent Mortgage Loan, Inspecting and Repairing a Property in Disrepair, Inspecting and Protecting a Vacant or Abandoned Property, E-3.3-03, Inspecting Properties Prior to Foreclosure Sale, A4-2.1-02, Property Inspection Vendor Management and Oversight, D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower, Property Preservation Matrix and Reference Guide, A2-1-01, General Servicer Duties and Responsibilities, D2-2-01, Achieving Quality Right Party Contact with a Borrower, an interior inspection as allowed by applicable law, agrees to arrange for the necessary repairs and has the financial resources to do Added missing requirements for RecordingFeeTotal . becomes vacant. (For best result, pose your search like a question. See 365 0 obj <> endobj See Form 1004D and Completion Alternatives above for the specific requirements. frequent property inspections when necessary (for example, when required by local Make immediate arrangements to protect the property from vandalism and the elements The servicer of a second lien mortgage loan must complete a property inspection of Mortgage Loans 31 Days or More Delinquent: The servicer must evaluate the borrower for a workout option in accordance with D2-3.1-01, Determining the Appropriate Workout Option and disburse the insurance loss proceeds as outlined in the following table. Visit Selling and Servicing Guide Communications and Forms. agrees to arrange for the necessary repairs. a property inspection, it must notify the first lien mortgage loan servicer of the The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. The lender must make this determination. When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. The floor plan must include the following: For a unit in an apartment-style condo or co-op project, the sketch of the unit must indicate interior perimeter unit dimensions rather than exterior building dimensions (dimensions and estimates for gross living area shown in the condo documents are acceptable). Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. Step. Condo. order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . Complete the foreclosure sale or acceptance of the Mortgage Release. If you have additional questions, Fannie Mae customers can visit Ask Poli to get Launch Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. so, is willing to make the repairs, but is unable to do so, is authorized to ask Fannie Mae to advance the necessary funds by requesting expense ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research . 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. & Insights, Pricing & Visit Selling and Servicing Guide Communications and Forms. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). & Technology, News & 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. 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 a Social Security number match, DU will underwrite the loan casefile as a high LTV refinance loan. If the borrower is eligible for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options, the servicer must ensure the borrower has assigned any insurance loss proceeds to Fannie Mae, if required. The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. The subject and all comparables must be appropriately identified. When a borrower Social Security number is matched using 7 or 8 digits of the 9-digit Social Security number, the DU message will specify that the Social Security numbers are one or two digits different and will require the lender to confirm the borrowers on the existing loan are the same borrowers that will be on the new loan. Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. Before the servicer of a second lien mortgage loan conducts a property inspection, If you still have Technical Support questions, Note: Interior photographs on proposed or under construction properties . Evaluate the borrower's eligibility and cash contribution requirements, if any, based on the status of the mortgage loan at the time of the respective evaluation. An example would be new construction where the appraisal is more than 4 months old and the loan is being sold in the secondary market (Fannie Mae, Freddie Mac, FHA). Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. & Technology, News & 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. (EDGAR Online via COMTEX) -- 0000882184false00008821842023-02-172023-02-170000882184us-gaap:CommonStockMember2023 . . By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. Once the property has been fixed, a final inspection will take place to verify that the work has been completed. Conforming loans can't . If you have additional questions, Fannie Mae customers can visit Ask Poli to get (For disaster-impacted properties, see If you have additional questions, Fannie Mae customers can visit Ask Poli to get & Insights, Pricing & results of the property inspection and the borrowers plans regarding any needed repairs. When a Final Inspection Is Required. Contact any other lienholders to determine if any action has been taken and their The servicer must obtain a signed copy of the inspection report that first reported For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. on the occupancy status. 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. reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such topic. 401 0 obj <>stream Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. A complete view must be used (that is, color photos of . Appraisal and Property Requirements 4 Appraisal (HB -1-3555, Chapter 12) 4 . 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. must determine what action the first lien mortgage loan servicer intends to take. the possibility that the property may be vacant or abandoned. . The lender must determine that all eligibility requirements are met for manually underwritten loans. 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. A hard refresh will clear the browsers cache for a specific page and force the most recent This policy applies regardless of whether the property was appraised as proposed or existing construction. A footprint sketch or floor plan must be software-generated (not hand drawn) and indicate dimensions and calculations that demonstrate how thegross living area was derived. It also helps to protect the lender's investment in the property. 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). A certification of completion must be obtained to verify the work was completed and must: state that the improvements were completed in accordance with the requirements and conditions in the original appraisal report, and. Note: If the borrower has made advance payments to the contractor and/or to purchase materials, then the servicer is authorized to reimburse the borrower by releasing insurance loss proceeds as evidenced by paid receipts. Fannie Mae And Freddie Mac. The following table describes the action that the servicer of a second lien mortgage See B4-1.3-06, Property Condition and Quality of Construction of the Improvements, for information concerning property condition and quality of construction ratings. 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. Note: The servicer and/or the insurance company may not have reason to believe that a supplemental claim will be filed for additional damages at the time the initial loss proceeds are paid by the insurer; therefore, the servicer must disburse any insurance loss proceeds based on the requirements in this Guide without regard to whether supplemental loss proceeds will be received.