A map showing the location of the subject property and the comparables that the appraiser used. Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. PDF FAQ Frequently Asked Questions - USDA Rural Development F-1-05: Expense Reimbursement (12/21/2022) - Fannie Mae Fannie Mae Provides Additional Guidance on Property Inspections and noted in this Servicing Guide. information from other Fannie Mae published sources. insurance coverage is being maintained. B4-1.2-01, Appraisal Report Forms and Exhibits (03/01/2023) - Fannie Mae F-4-02, List of Contacts). version of a page. 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. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . submit the appraisal selected by the lender through the UCDP prior to delivery. In doing so, we are providing this Lender Letter with additional guidance and relief. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. Fannie Mae customers! 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. 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. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. B-5-01: Insured Loss Events (07/14/2021) - Fannie Mae 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. 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). Having Issues with Seeing this Page Correctly? Note: The servicer must ensure the property inspection report accurately assesses the condition of the property, is dated, and identifies the mortgagor(s) and the property address. See 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. ), 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 PDF HomeStyle Renovation Mortgage - Federal Deposit Insurance Corporation Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. the execution of a Mortgage Release, or the mortgage loan becomes current unless otherwise 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 3. See Form 1004D and Completion Alternatives above for the specific requirements. information from other Fannie Mae published sources. remit the remaining balance of any insurance loss proceeds the servicer is maintaining on a mortgage loan within 30 days of confirming the REOgram via CRS using remittance code 332, and. B5-7-02, High LTV Refinance Underwriting, Documentation, and Collateral At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. on the occupancy status. 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. The appraisal update must occur within four months prior tothe date of the note and mortgage. & Technology, News & However, the servicer must complete more Yes. However, lenders are not required to comply with the waiting period and re-establishment of credit requirements for significant derogatory credit events or the payoff or satisfaction of a judgment identified on the credit report. 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 Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. 10-k Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. property address or legal description if the address is not available. If a property previously reported feel free to email. content.edgar-online.com Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. Execution, Learning A4-2.1-02, Property Inspection Vendor Management and Oversight for information on property inspection vendor management. Visit Selling and Servicing Guide Communications and Forms. The table below provides references to recently issued Announcements that are related to this topic. delays, the servicer must document efforts to conduct timely inspection and the reason 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement inspection, but no additional signature is required. F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. The subject and all comparables must be appropriately identified. version of a page. Denise Thomas - Vice President, Compliance and Operational - LinkedIn When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. is authorized to release the insurance loss proceeds in one payment. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. Conventional Loan Home Requirements & Inspection - The Mortgage Reports %PDF-1.6 % Purpose. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. QRPC has been established within the last 30 days. such as legal action, to have emergency repairs made. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. version of a page. The lender must determine that all eligibility requirements are met for manually underwritten loans. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. 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. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. 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. INSTRUCTIONS FOR PERFORMING A MULTIFAMILY PROPERTY - Fannie Mae 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. Complaint (eFiled) - Party: Plaintiff Federal National Mtg Assn Fannie Mae 0 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. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. 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. 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. Launch foreclosure sale, or in applicable foreclosure actions where there is no foreclosure 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 . Allow the servicer to determine the repairs are from the location of the property. This button displays the currently selected search type. Fannie Mae released its first economic commentary of 2023 earlier this month. The appraisers certification #23 is an acknowledgment by the appraiser that certain parties to a mortgage finance transaction that are not the lender/client and/or intended user may rely on the appraisal report. Advance the funds to pay expenses. The following table provides references to Announcements that are related to this topic. Fannie Mae's rules for conventional . Anti-Money Laundering Regulations for Real Estate Transactions All completion documentation must include one or more visually verifiable exhibits. Appraisal Update and/or Completion Report - Fannie Mae Requirements for HomeStyle Energy Improvements on Existing Construction. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. property inspection reports, . 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, Subpart B5: Unique Eligibility & Underwriting Considerations, Chapter B5-7: High Loan-to-Value Refinance Option, Research Having Issues with Seeing this Page Correctly? What Is An Escrow Holdback? | Rocket Mortgage When the servicer learns of any condition detrimental to the value of the property What is required when the appraiser conducts a visual - Fannie Mae 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. Obtain the proper lien releases, if applicable. A term used to define a broad base of financial instruments, including swaps, options, and futures contracts, whose value is based upon, or derived from, an underlying rate, price, or index (such as interest rates, foreign currency, commodities, or prices of other financial instruments such as stocks or bonds). When should the property inspection be performed if it is - Fannie Mae endstream endobj 366 0 obj <. documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. 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. If you still have Technical Support questions, summarize its attempts to locate the borrower and its discussions with any other lienholders 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. (see Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. But there are a few basic property standards. Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D. Property Inspection Report Section L - Fannie Mae The lender must determine if repairs are required as a result of the inspection, verification per above requirements. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. This policy applies regardless of whether the property was appraised as proposed or existing construction. an MBS mortgage loan serviced under the special servicing option. 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. Appraiser Independence Requirements - Fannie Mae 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. When there is a Social Security number match, DU will underwrite the loan casefile as a high LTV refinance loan. do not affect the ability to obtain an occupancy permit. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. Inspection Manual - Fannie Mae Appraisal Update and/or Completion Report (Form 1004D). B4-1.3-06, Property Condition and Quality of Construction - Fannie Mae & Insights, Pricing & Center, Apps may be conducted simultaneously with other required property inspections. A hard refresh will clear the browsers cache for a specific page and force the most recent 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 Maes lien. 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. The loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. 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. Events, Verification of Completion: New or Proposed Construction, Verification of Completion: Existing Construction, B4-1.2-04, Appraisal Age and Use Requirements, B4-1.2-01, Appraisal Report Forms and Exhibits, B4-1.3-06, Property Condition and Quality of Construction of the Improvements, B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, Borrower/builder attestation letter with supporting evidence, Borrower attestation letter with supporting evidence. However, the servicer must complete more frequent property . the possibility that the property may be vacant or abandoned. Ask Poli for Servicers. & Technology, News & Inspector Information A. Photo Requirements Use only clear, focused, color photos. 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the 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. must follow up until the repairs have been completed. 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. Appraisal Form 1004d - Updates & Completions - Pro Teck 209.04 Additional Requirements for Monthly Remittance for Security Transactions. Having Issues with Seeing this Page Correctly? The age of the appraisal report mustbe lessthan 12 months from the notedate of the subsequent transaction. Florida's Champlain Towers Collapse Result in New Requirements Fannie Mae's project approval process is accepted by many institutional investors. Criteria for Use of Form 1004D and Completion Alternatives. 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. Access 1. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. In a 2014 final rule, FinCEN extended similar requirements to the housing-related Government Sponsored Enterprises ("GSEs")Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Inspection Training on program requirements, processes, and documentation. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. A hard refresh will clear the browsers cache for a specific page and force the most recent and submit a recommendation for further action to its Fannie Mae Servicing Representative Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. feel free to email. For manually underwritten loans, an appraisal with an interior and exterior inspection is required. must occur between 20 and 35 days apart. All documentation must be retained in the loan file. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Miami, Florida, United States. The servicer must complete a final property inspection within 35 days prior to the 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.