provide the dimensions of all exterior walls. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. 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). 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 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. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. 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. applicable law allows for the accumulated interest to be applied to the UPB. Interior inspections Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. 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 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. Yes. If a property previously reported Execution, Learning to the extent that local laws allow such action. Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. information from other Fannie Mae published sources. Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. Fannie Mae customers! sale and title is transferred by court order, the estimated court order docket date See. . Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. 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. A hard refresh will clear the browsers cache for a specific page and force the most recent At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement Oct 2011 - Jan 20208 years 4 months. Each Fannie Mae appraisal report form includes an appraisers certification (and, if applicable, a supervisory appraisers certification) and a statement of assumptions and limiting conditions. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. We recommend that you use the latest version of FireFox or Chrome. 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. & Insights, Pricing & Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D. Complete the foreclosure sale or acceptance of the Mortgage Release. 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. There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. We recommend that you use the latest version of FireFox or Chrome. However, the servicer must not complete a property inspection every calendar month & Technology, News & Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. If you have additional questions, Fannie Mae customers can visit Ask Poli to get ordinance or based on property condition). This policy applies regardless of whether the property was appraised as proposed or existing construction. 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. the property securing the mortgage loan by the earlier of. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). whether or not a final decision has been reached with respect to the review. Atlanta, Georgia. If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. Form. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. 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. 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. The following table provides references to Announcements that are related to this Center, Apps Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. F-4-02, List of Contacts). The servicer must follow the procedures in General Expense Reimbursement Requirements in See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . 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. We recommend that you use the latest version of FireFox or Chrome. %%EOF If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. 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 letter and all documentation must be retained in the loan file. 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. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. The loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. was last inspected to avoid a potential duplication of effort. Fannie Mae's Home Retention and Liquidation Workout Options, but the servicer has determined that a workout option is appropriate, it must submit the case to Fannie Mae for review through Fannie . Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Access 1. Notify the property insurance carrier about the vacancy to ensure that appropriate 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. as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, Center, Apps 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. no delinquencies in the most recent 6 months, and. inspection only in the following circumstances: The servicer must maintain and make any checklists or other documentation relied upon report. If extenuating circumstances cause inspection 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. a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the (For best result, pose your search like a question. Fannie Mae customers! We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . to maintain the property and take the action described in the following table depending 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. version of a page. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. 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. The servicer must follow the procedures in Reimbursement for Property Inspections and submit a recommendation for further action to its Fannie Mae Servicing Representative %PDF-1.6 % Obtain complete details on the damage to the property and determine the needed repairs. Borrower/builder attestation letter: For new or proposed construction, a letter is permitted to confirm the property was completed and constructed in conformity with the plans and specifications, amendments, and change orders. A2-1-01, General Servicer Duties and Responsibilities and the Property Preservation Matrix and Reference Guide for additional information. status must be documented on the checklist or other document evidencing notes of the & Insights, Pricing & is authorized to make the disbursement in one payment. Fannie Mae is an Equal Opportunity Employer, which means we are committed to fostering a diverse and inclusive workplace. If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. 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. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. copies of the appraisals and other written valuations to the applicants . if there are legal constraints due to compliance with applicable law including active examples of recent updates, such as restoration, remodeling, and renovation, if present. In addition, appraisals for units in condo projects that consist solely of detached dwellings may be documented on Form 1004, if the appraiser includes an adequate description of the project and information about the homeowners association fees and the quality of the project maintenance. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. Fannie Mae requires the lender to disclose any information regarding environmental hazards to the appraiser and note the individual mortgage file accordingly if the real estate agent, the property seller, the property purchaser, or any other party to the mortgage transaction informs the lender that an environmental hazard exists in or on the property, or in the vicinity of . Make immediate arrangements to protect the property from vandalism and the elements Servicer Action. The request must include the mortgage loan and property information, a description of the specific damage or loss, details of the insurance claim, and a business justification for the request. information from other Fannie Mae published sources. 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. is authorized to release the insurance loss proceeds in one payment. Main Structure . The property data may be collected through secondary data sources or by someone other than the appraiser. affidavits of vacancy where necessary or appropriate to evidence the vacancy status. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. 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. Overall, the home inspection requirements . Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. must follow up until the repairs have been completed. 5. . Otherwise, an appraisal with an interior and exterior inspection is required. must determine what action the first lien mortgage loan servicer intends to take. The servicer must inspect a property as soon as possible after it becomes aware of 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 . becomes vacant. ), Selling, Securitizing, and Delivering Loans, Subpart B5: Unique Eligibility & Underwriting Considerations, Chapter B5-7: High Loan-to-Value Refinance Option, Research is authorized to release an initial disbursement of insurance loss proceeds of 25% of the total insurance loss proceeds but no more than the greater of. 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). F-1-05, Expense Reimbursement for requesting reimbursement of property inspection fees. Apr 2020 - Present2 years 10 months. How to do a hard refresh in Internet Explorer. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. 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. But there are a few basic property standards. Visit Selling and Servicing Guide Communications and Forms. for any exception in the mortgage loan file. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Fannie Mae released its first economic commentary of 2023 earlier this month. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. Obtain the proper lien releases, if applicable. Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. All levels of the dwelling unit(s) must be part of the exhibit. Fannie Mae customers! 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. Originator Organization: Strategic Funding, LLC, NMLSR ID 1409576 FLORIDA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS ic @Roomns Form 3010 tt amily~Fannie Mae/Freddie Mac Page 15 of 15 Wonneoonsaionon 2 WeerensrrennINSTRUMENT# 2017011330 OR BOOK 4896/PAGE 1599 PAGE 16 of 16 Exhibit A Lot 21, Block 3, Pine Island Shores . In This Section. 30UL Hna`@,v?,A .mxC3k00?xg>bb8"D+,,S 7 L@h_- e?` 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. When a successful submission to UCDP is received by only one Agency, then follow the guidance below: o When using DU, a successful UCDP document file status is required from Fannie Mae. or. (For best result, pose your search like a question. Before the servicer of a second lien mortgage loan conducts a property inspection, loan must take depending on the borrowers action. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. See Business Support Representative / Loan Officer. & Technology, News & Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. & Technology, News & 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, The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . The servicer is authorized to consider a curbside (drive-by) inspection as an exterior E-3.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information. feel free to email. Q12. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. The result of the Social Security number matching will be specified in a DU message. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. and Property Preservation Expenses in Having Issues with Seeing this Page Correctly? 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. including loan amount limits and credit score requirements. 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. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. 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. Otherwise, an appraisal with an interior and exterior inspection is required. 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. In all cases, the lender must verify completion before the loan is sold to Fannie Mae. If you still have Technical Support questions, The following table describes the action that the servicer of a second lien mortgage For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. endstream endobj 366 0 obj <. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. In doing so, we are providing this Lender Letter with additional guidance and relief. When there are two borrowers on the new loan and two borrowers on the existing loan, but only one borrowers Social Security number matches, the DU message will specify that not all of the borrower Social Security numbers match and will require that the lender confirm the borrowers on the existing loan are the same borrowers that will be on the new loan. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. endstream endobj startxref ), 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 If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. 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. 1. The table below provides references to recently issued Announcements that are related to this topic. property address or legal description if the address is not available. The subject and all comparables must be appropriately identified. must adhere to the following requirements. 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. This report is by the Financial Services 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. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. Form 1004 also may be used for two-unit properties, if each of the units is occupied by one of the co-borrowers as theirprincipal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). The lender must note in the file why the original appraiser was not used. 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. 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. (Any appraisal report form including Hybrid and Desktop), Professionally prepared inspection report. When a property securing a mortgage loan experiences an insured loss, the servicer must ensure the proof of loss claim is filed within the time period specified in the insurance policy and monitor the disbursement of insurance loss proceeds (see Disbursing Insurance Loss Proceeds Based on the Mortgage Loan Status and the Borrowers Intent for additional information). Fannie Mae And Freddie Mac. See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . Having Issues with Seeing this Page Correctly? Authenticate when taken and that such photos or video were not altered in any way. noted in this Servicing Guide. Although the scope of work for the appraisal or the extent of the appraisal process is guided by Fannie Maes appraisal report forms, the forms do not limit or control the appraisal process. 2. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. Lenders must establish a completion escrow for the postponed energy-related improvements by withholding funds equal to 120% of the estimated cost for completing the improvements. Contact any other lienholders to determine if any action has been taken and their For manually underwritten loans, an appraisal with an interior and exterior inspection is required. Center, Apps information from other Fannie Mae published sources. 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,