The appraisers analysis should go beyond any limitations of the forms, with additional comments and exhibits being used if they are needed to adequately describe the subject property, document the analysis and valuation process, or support the appraisers conclusions. ), 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 Submit a request for expense reimbursement. 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 customers! When the effective date of the original desktop appraisal report is more than four months from the date of the note and mortgage, a new appraisal is required. A4-2.1-02, Property Inspection Vendor Management and Oversight for information on property inspection vendor management. Otherwise, an appraisal with an interior and exterior inspection is required. If you still have Technical Support questions, This topic contains information on appraisal report forms and exhibits, including: Appraisers must use the most recent version of the appraisal report forms and include any other information, either as an attachment or addendum to the appraisal report form, needed to adequately support the opinion of market value. In This Section. If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. Notice of Filing - Original Note, Copy of Original Mortgage d Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. Requirements for HomeStyle Energy Improvements on Existing Construction. The table below provides references to the Announcements that have been issued that are related to this topic. A2-4-01: Quality Control Reviews (08/17/2016) - Fannie Mae certification language that the alteration or repair was satisfactorily completed; visually verifiable exhibits of the completed work; and. At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. bankruptcy, or. the offer is not more than four months old on the date of the note and the mortgage. PDF Correspondent Lending Conforming Agency Overlays information from other Fannie Mae published sources. & Technology, News & Once the property has been fixed, a final inspection will take place to verify that the work has been completed. version of a page. 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. 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. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. Conforming loans can't . The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. A map showing the location of the subject property and the comparables that the appraiser used. The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. Fannie Mae customers! Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. 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. they must conform to Fannie Mae's ARM requirements (see Resources). & Insights, Pricing & View full Fact Sheet. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. 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. hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. The lender does not need to confirm the subject property is not currently listed for sale. COMPLAINT - MORTGAGE FORECLOSURE August 05, 2022 | Trellis B5-7-02, High LTV Refinance Underwriting, Documentation, and Collateral 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. Fannie Mae Provides Additional Guidance on Property Inspections and The MarketWatch News Department was not involved in the creation of this content. Lenders must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlines in, Lenders must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlined in, Lender must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlined in, How to do a hard refresh in Internet Explorer. The exhibits in the following table must accompany the appraisal report. 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. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. 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. Execution, Learning 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.". A2-1-01, General Servicer Duties and Responsibilities and the Property Preservation Matrix and Reference Guide for additional information. F-1-05: Expense Reimbursement (12/21/2022) - Fannie Mae frequent property inspections when necessary (for example, when required by local listed in the following table. The table below describes requirements related to properties that are new or proposed construction that are not complete when the loan is sold to Fannie Mae. The property data may be collected through secondary data sources or by someone other than the appraiser. Discuss with the borrower any plans for repairing the property. Center, Apps 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). use any insurance loss proceeds to reduce the outstanding mortgage loan debt. Loans secured by a second home or an investment property must be underwritten in DU and receive an Approve/Eligible recommendation, unless they are required to be underwritten in accordance with the Alternative Qualification Path (see B5-7-03, High LTV Refinance Alternative Qualification Path). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. What is required when the appraiser conducts a visual - Fannie Mae See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. the possibility that the property may be vacant or abandoned. 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 30UL Hna`@,v?,A .mxC3k00?xg>bb8"D+,,S 7 L@h_- e?` Prohibit payment of fees out of the insurance loss proceeds to any public adjusters or other third parties retained by the borrower to assist with the recovery of those proceeds, unless otherwise agreed to by Fannie Mae in writing. Center, Apps 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. Updated Minimum Financial Eligibility Requirements for Fannie Mae and content.edgar-online.com The servicer must inspect a property as soon as possible after it becomes aware of 1. must adhere to the following requirements. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. 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. Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. provide. 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 . Appraisal and Property -Related - Fannie Mae (For best result, pose your search like a question. A floor plan is required for certain appraisal reports. an MBS mortgage loan serviced under the special servicing option. 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. 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. ); examples of recent updates, such as restoration, remodeling, and renovation, if present. if there is potential danger to the inspector. do not affect the ability to obtain an occupancy permit. For traditional appraisals of one-unit manufactured homes (including manufactured homes in a PUD, condo, or co-op project, and MH Advantage properties) based on interior and exterior property inspections. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. a full payment has been received within the last 30 days, a workout option has been approved and the borrower is performing under the plan, 1. The following table provides a list of the servicers responsibilities when there is an insurable loss on a property securing a mortgage loan and the property can be legally rebuilt. documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. Visit Selling and Servicing Guide Communications and Forms. An elected board of directors is responsible for operations and management . Allow the servicer to determine the repairs are from the location of the property. We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . 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 Launch Step. is authorized to make the disbursement in one payment. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. The following table provides a list of account requirements. 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. Otherwise, Form 1007 is not required. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Credit Risk and Underwriting Policy - Washington DC - Fannie Mae version of a page. Having Issues with Seeing this Page Correctly? Center, Apps affidavits of vacancy where necessary or appropriate to evidence the vacancy status. 2. 214.03 C Fannie Mae Confirmation of Full Payoff Amount. COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. if there are legal constraints due to compliance with applicable law including active such as legal action, to have emergency repairs made. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. ), 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, Research XLSX sf.freddiemac.com & Technology, News & foreclosure sale, or in applicable foreclosure actions where there is no foreclosure Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. Mortgage Loans Current or Less Than 31 Days Delinquent: The servicer must follow the requirements described in the following table for a mortgage loan that is current or less than 31 days delinquent at the time of the loss event. When a Final Inspection Is Required. Inspector Information A. Fannie Mae's rules for conventional . endstream endobj startxref (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. The inspection report must be retained in the loan file and made available to Fannie Mae upon request. Events, Age of Appraisal and Appraisal Update Requirements, Multiple Appraisals of the Subject Property, Use of an Appraisal for a Subsequent Transaction, B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions, How to do a hard refresh in Internet Explorer. The borrower and the lender/client must be the same on the original and subsequent transaction. 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. 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. noted in this Servicing Guide. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Fannie Mae's project approval process is accepted by many institutional investors. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. The loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. Center, Apps 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement The letter and all documentation must be retained in the loan file. information from other Fannie Mae published sources. (For disaster-impacted properties, see Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. to the extent that local laws allow such action. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. Fannie Mae Home Inspection Requirements | Daystar Properties The Appraisal Update and/or Completion Report (Form 1004D) is used to update an appraisal or provide confirmation that the requirements or conditions in an appraisal report have been met (such as completion of construction or repairs). Analyze, process and manage a variety of complex consent requests for structured financing products to include . Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. . were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. 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. Execution, Learning The following table describes the servicers next steps depending on the mortgage Note: For remote inspections conducted by video call with the borrower, the servicer must retain video and/or photo records of the call that clearly document the servicers compliance with the above requirements. 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. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . See B4-1.3-06, Property Condition and Quality of Construction of the Improvements, for information concerning property condition and quality of construction ratings. The servicer must follow the procedures in General Expense Reimbursement Requirements in on the borrowers action. This may include but is not limited to foundation settlement, water seepage, active roof leaks, worn roof shingles, inadequate electrical service or plumbing fixtures, etc. Project Eligibility Review Service (PERS) Overview - Fannie Mae If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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). The table below provides references to recently issued Announcements that are related to this topic. Finance - Wikipedia Execution, Learning Ask Poli for Servicers. The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. School of Multifamily Property Inspections. 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. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. For appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) that are based on interior and exterior property data collection. Visit Selling and Servicing Guide Communications and Forms. See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. Mark Walser on LinkedIn: Home Equity Lenders Need to Expand Use of Fannie Mae customers! The lender must make this determination. 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. Oct 2011 - Jan 20208 years 4 months. If extenuating circumstances cause inspection Events, Chapter B-5, Property and Flood Insurance Loss Events and Claim Settlements, Disbursing Insurance Loss Proceeds Based on the Mortgage Loan Status and the Borrower's Intent, Performing Remote Insured Loss Repair Inspections, Depositing the Insurance Loss Proceeds Not Disbursed, E-3.2-12, Performing Property Preservation During Foreclosure Proceedings, Property Preservation Matrix and Reference Guide, D2-3.1-01, Determining the Appropriate Workout Option, A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements, A4-1-02, Establishing Custodial Bank Accounts. When the servicer determines the property is vacant, the servicer must take the actions A link to the digital exhibits from within the form is acceptable but must be accessible by Fannie Mae for the life of the loan. Having Issues with Seeing this Page Correctly? repairs made. the vacancy, in which the person who completed the inspection certifies that they Property Inspection Report Section L - Fannie Mae Obtain complete details on the damage to the property and determine the needed repairs. 365 0 obj <> endobj the date that it initiates foreclosure proceedings, or. If the appraiser indicates on the Form 1004D that the property value has not declined, then the lender may proceed with the loan in process without requiring any additional fieldwork. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . We recommend that you use the latest version of FireFox or Chrome. The servicer must obtain a signed copy of the inspection report that first reported Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. B4-1.2-01, Appraisal Report Forms and Exhibits (03/01/2023) - Fannie Mae Before the servicer of a second lien mortgage loan conducts a property inspection, Notify the property insurance carrier about the vacancy to ensure that appropriate For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. and submit a recommendation for further action to its Fannie Mae Servicing Representative 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 . provide the dimensions of all exterior walls. Note: Interior photographs on proposed or under construction properties . (For best result, pose your search like a question. status must be documented on the checklist or other document evidencing notes of the & Insights, Pricing & For non-routine litigation matters, The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses.