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. version of a page. See Overview of General Servicer Duties and Responsibilities in Inspection Training on program requirements, processes, and documentation. 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. they must conform to Fannie Mae's ARM requirements (see Resources). Make immediate arrangements to protect the property from vandalism and the elements copies of the appraisals and other written valuations to the applicants . order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . Business Support Representative / Loan Officer. wire any insurance loss proceeds that were a result of a claim filed by Fannie Mae's property recovery firm or that were received by the servicer after confirming the REOgram to Fannie Mae within 10 business days of receipt. Appraisal Updates & Completion Form. & Technology, News & 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. Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. 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. Any lender that sells loans to Fannie Mae can accept a PERS approval. complete a property inspection every calendar month as long as the mortgage loan remains In This Section. If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. Fannie Mae released its first economic commentary of 2023 earlier this month. 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 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. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. 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. must determine what action the first lien mortgage loan servicer intends to take. and Property Preservation Expenses in Yes. was last inspected to avoid a potential duplication of effort. (For best result, pose your search like a question. 2. 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). Ask Poli for Servicers. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. 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. (For best result, pose your search like a question. 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. 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. F-4-02, List of Contacts). information from other Fannie Mae published sources. Fannie Mae customers! Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. and complete the property inspection no later than the 120th day of delinquency for Center, Apps Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. Homeownership counseling: Homeownership counsel-ing is not required. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. We recommend that you use the latest version of FireFox or Chrome. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. We recommend that you use the latest version of FireFox or Chrome. (see See Main Structure . Having Issues with Seeing this Page Correctly? version of a page. Fannie Mae customers! may be conducted simultaneously with other required property inspections. Attempt to locate the borrower to determine the reason for the vacancy. 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). version of a page. feel free to email, the property is borrower/tenant occupied, and. Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. endstream endobj startxref issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . 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. (For best result, pose your search like a question. Otherwise, Form 1007 is not required. See. If you still have Technical Support questions, 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. Lenders and borrowers must execute an escrow agreement that states how the escrow account will be managed and how funds from the escrow account will be disbursed. 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. paid invoices for the alterations or repairs. Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . & Insights, Pricing & Fannie Mae Form 1076 Condominimum Project Questionnaire or equivalent (must include all information on the 1076) . 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. feel free to email. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. The servicer must follow the procedures in General Expense Reimbursement Requirements in The following table provides references to Announcements that are related to this topic. However, the servicer must complete more frequent property . 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. no delinquencies in the most recent 6 months, and. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. 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. delays, the servicer must document efforts to conduct timely inspection and the reason Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. 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 inspection report must be retained in the loan file and made available to Fannie Mae upon request. 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. report. 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. for any exception in the mortgage loan file. 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. F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. If you still have Technical Support questions, the execution of a Mortgage Release, or the mortgage loan becomes current unless otherwise 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. We recommend that you use the latest version of FireFox or Chrome. 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. 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). 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). Notice of Filing - Original Note, Copy of Original Mortgage d, Assignment of Mortgage, Demand Letter , Loan Payment Hitory & Verified Statement as to Plaintiff's CostsParty: Plaintiff Federal Nat Mtg Assn ("FANNIE MAE") Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. The appraisal update must occur within four months prior tothe date of the note and mortgage. However, the servicer must complete more frequent property . 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. Once the property has been fixed, a final inspection will take place to verify that the work has been completed. Does AIR apply to non-appraisal valuation methods (i.e., automated valuation models [AVMs], broker price . 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. An elected board of directors is responsible for operations and management . Proper inspection training is a key component . Center, Apps 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. At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. If the appraisal report is greater than fourmonths fromthe date of the note and mortgage, then an appraisal update is required. 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. Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. For non-routine litigation matters, represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). to the extent that local laws allow such action. The following table outlines the type of inspection the servicer must perform depending Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). Servicer Action. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. The letter and all documentation must be retained in the loan file. 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). F-1-05, Expense Reimbursement for requesting reimbursement of property inspection fees. Obtain complete details on the damage to the property and determine the needed repairs. The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. Conforming loans can't . 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. 401 0 obj <>stream 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. The table below provides references to recently issued Announcements that are related to this topic. Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. or. The borrower and the lender/client must be the same on the original and subsequent transaction. the borrower is performing under the applicable bankruptcy plan. the date that it initiates foreclosure proceedings, or. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. 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. frequent property inspections when necessary (for example, when required by local documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. 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. We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . When a property inspection is required every calendar month, the property inspections In-depth home inspections are typically not required. 90 or more days delinquent without regard to whether QRPC, as described in For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. If a property is subsequently inspected and remains vacant, the continued vacancy See Form 1004D and Completion Alternatives above for the specific requirements. 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. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. If a property previously reported sale and title is transferred by court order, the estimated court order docket date 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. Once the servicer has confirmed the property is abandoned, the servicer must complete ordinance or based on property condition). Photos must remain clear at a dimension of 3 " x 5". E-3.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information. The lender must determine that all eligibility requirements are met for manually underwritten loans. Fannie Mae customers! 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 See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). The lender must note in the file why the original appraiser was not used. In doing so, we are providing this Lender Letter with additional guidance and relief. A lender may only exercise the high LTV refinance value acceptance (appraisal waiver) or value acceptance + property data offer if. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. submit the appraisal selected by the lender through the UCDP prior to delivery. If the borrower is not eligible for a workout option in accordance with D2-3, Fannie Maes 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 Maes servicing solutions system. The following table describes the action that the servicer of a second lien mortgage 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. Finance is the study and discipline of money, currency and capital assets.It is related to, but not synonymous with economics, which is the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. ); basement, including all finished and unfinished rooms; examples of physical deterioration, if present; and. 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. Note: Interior photographs on proposed or under construction properties . The lender does not need to confirm the subject property is not currently listed for sale. The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. or the need for urgent repairs, the servicer must remind the borrower of their obligation The table below provides references to the Announcements that have been issued that are related to this topic. Launch Authenticate when taken and that such photos or video were not altered in any way. This button displays the currently selected search type. 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.

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