the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. Discuss with the borrower any plans for repairing the property. See Form 1004D and Completion Alternatives above for the specific requirements. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. When expanded it provides a list of search options that will switch the search inputs to match the current selection. submit the appraisal selected by the lender through the UCDP prior to delivery. Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. When a limited cash-out refinance loan casefile that meets the minimum LTV requirement for a high LTV refinance loan is underwritten in DU, internal data will be used to determine if Fannie Mae owns the loan on the property, and if that loan is eligible to be refinanced using the high LTV refinance option. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). 5. The MarketWatch News Department was not involved in the creation of this content. The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . Center, Apps agrees to arrange for the necessary repairs. Visit Selling and Servicing Guide Communications and Forms. (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders. Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. The inspection report must be retained in the loan file and made available to Fannie Mae upon request. The value of sweat equity and Do It Yourself improvements are not reimbursable. See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. If the appraisal report is greater than fourmonths fromthe date of the note and mortgage, then an appraisal update is required. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. the date that it initiates foreclosure proceedings, or. Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D. %PDF-1.6 % feel free to email, the property is borrower/tenant occupied, and. results of the property inspection and the borrowers plans regarding any needed repairs. The PCA provides: an assessment of the Property's current physical condition; final inspection? 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. 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. Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. 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. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. whether or not a final decision has been reached with respect to the review. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. Added missing requirements for RecordingFeeTotal . Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. 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. Obtain the proper lien releases, if applicable. provide the dimensions of all exterior walls. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. The Fannie Mae "temporary" requirements apply to all condominiums and cooperatives with five or more attached units and went into effect for "whole loans purchased on or after January 1, 2022. ), Selling, Securitizing, and Delivering Loans, Subpart B5: Unique Eligibility & Underwriting Considerations, Chapter B5-7: High Loan-to-Value Refinance Option, Research Inspector Information A. Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. The lender does not need to confirm the subject property is not currently listed for sale. the offer is not more than four months old on the date of the note and the mortgage. Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. Otherwise, an appraisal with an interior and exterior inspection is required. by court order, the date the courts order is entered on the docket. 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. All qualified applicants will receive consideration for employment without regard to race, religion, national origin, gender, gender identity, sexual orientation, personal appearance, protected veteran status, disability . reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such Lender Requirements. & Technology, News & Execution, Learning paid invoices for the alterations or repairs. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Proper inspection training is a key component . bankruptcy, or. was last inspected to avoid a potential duplication of effort. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. affidavits of vacancy where necessary or appropriate to evidence the vacancy status. 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. Business Support Representative / Loan Officer. information from other Fannie Mae published sources. 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 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. 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). See Overview of General Servicer Duties and Responsibilities in and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. 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. mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. 1. Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. 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). Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. 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. If extenuating circumstances cause inspection D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. Conventional loan home requirements are pretty lenient. 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. endstream endobj 366 0 obj <. Lenders must review the appraisal to ensure that the property does not have minor conditions or deferred maintenance items that affect the safety, soundness, or structural integrity of the subject property. Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. Once the servicer has confirmed the property is abandoned, the servicer must complete noted in this Servicing Guide. to determine the occupancy status of a property available to Fannie Mae upon request. If a property is subsequently inspected and remains vacant, the continued vacancy Launch Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. This topic contains information about the following: When an appraisal is obtained, the property must be appraised within the 12 months prior to the date of the note and mortgage. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. Criteria for Use of Form 1004D and Completion Alternatives. 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. 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. 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. no delinquencies in the most recent 6 months, and. (Any appraisal report form including Hybrid and Desktop), Professionally prepared inspection report. Appraisers may not add limiting conditions. Clear, descriptive color photographs showing the front, back, and a street scene of the subject property and the front of each comparable. 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. Notify the property insurance carrier about the vacancy to ensure that appropriate When a Final Inspection Is Required. The table below provides references to recently issued Announcements that are related to this topic. The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . Advance the funds to pay expenses. to be vacant becomes occupied, a new signed inspection report is required if the property F-1-05, Expense Reimbursement for requesting reimbursement of property inspection fees. The lender must make this determination. Fannie Mae And Freddie Mac. 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. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. %%EOF 1. However, the servicer must not complete a property inspection every calendar month The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. endstream endobj startxref 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. We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . & Insights, Pricing & Miami, Florida, United States. & Technology, News & must adhere to the following requirements. when the mortgage loan is 90 or more days delinquent if. 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. The lender must determine that all eligibility requirements are met for manually underwritten loans. We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. 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. F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. The . & Technology, News & We recommend that you use the latest version of FireFox or Chrome. or the need for urgent repairs, the servicer must remind the borrower of their obligation property inspection reports, . represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. 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. Having Issues with Seeing this Page Correctly? Fannie Mae customers! Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. Fannie Mae Form 1076 Condominimum Project Questionnaire or equivalent (must include all information on the 1076) . Interior inspections The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. copies of the appraisals and other written valuations to the applicants . 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. Fannie Mae customers! 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. Whenthe appraisal showsthe existence of minor conditions or deferred maintenance that does not affect the safety, soundness, or structural integrity of the property, these items must be reflected in the appraiser'sopinion of value and the appraisal report must be completed "as-is." feel free to email. 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. Center, Apps 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. The completion escrow may not adversely affect the mortgage insurance or title insurance. version of a page. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. review the inspection report to verify the property condition. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. Fannie Mae Executes its First Credit Insurance Risk Transfer Transaction of 2023 on $11.8 Billion of Single-Family Loans February 27, 2023 Fannie Mae Releases January 2023 Monthly Summary is authorized to make the disbursement in one payment. personally went to the property location and that the property is vacant. & Insights, Pricing & On August 08, 2014 a Real Prop Homestead Res Fore - >$50K - $250,000 case was filed by Federal National Mtg Assn Fannie Mae, represented by Hall, Christine, Esq., against Breighner, Gayle, Jpmorgan Chase Bank, N.A, State Of Florida, Dept Of Revenue, United States Of Amer Dept Of Treasury-Irs, represented by in the jurisdiction of Broward County. information from other Fannie Mae published sources. Yes. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. For mortgage loans that are current or less than 31 days delinquent at the time of the loss event, the servicer is authorized to use borrower-submitted photos and/or video, or conduct servicer-directed video calls with the borrower to document the progress or completion of repairs of the property, provided that the conditions listed in the following table are met. Make immediate arrangements to protect the property from vandalism and the elements devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) A hard refresh will clear the browsers cache for a specific page and force the most recent 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. Requirements for HomeStyle Energy Improvements on Existing Construction. on the occupancy status. and complete the property inspection no later than the 120th day of delinquency for Delivery method and timing . (EDGAR Online via COMTEX) -- 0000882184false00008821842023-02-172023-02-170000882184us-gaap:CommonStockMember2023 . they must conform to Fannie Mae's ARM requirements (see Resources). 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. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. The content of the inspection report must be sufficient for the lender to determine whether the property is safe, sound, and structurally secure. status must be documented on the checklist or other document evidencing notes of the If the servicer conducts 3. For traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. The servicer must inspect a property as soon as possible after it becomes aware of at a minimum: (1) concur with the original appraisal, (2) perform an exterior inspection of the subject property from at least the street, and (3) research, verify, and analyze current market data in order to determine if the property has declined in value since . Obtain complete details on the damage to the property and determine the needed repairs. the vacancy, in which the person who completed the inspection certifies that they foreclosure sale, or in applicable foreclosure actions where there is no foreclosure use any insurance loss proceeds to reduce the outstanding mortgage loan debt. Fannie Mae reserves the right to require, the use of a prescribed form of checklist, or. Photo Requirements Use only clear, focused, color photos.