The table below provides references to the Announcements that have been issued that are related to this topic. 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 . If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. %PDF-1.6
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All completion documentation must include one or more visually verifiable exhibits. 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. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Yes. Fannie Mae guidelines, eligible for the Guaranteed Loan Program? F-4-02, List of Contacts). When the servicer learns of any condition detrimental to the value of the property A hard refresh will clear the browsers cache for a specific page and force the most recent & Insights, Pricing & 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). Otherwise, an appraisal with an interior and exterior inspection is required. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. 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. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. View full Fact Sheet. School of Multifamily Property Inspections. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. 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. Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. When none of the borrower Social Security numbers match, the loan casefile will not be underwritten as a high LTV refinance loan. McLean, Virginia, United States. See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. Repairs to a property damaged as the result of a disaster (as defined by this Selling Guide) are not required prior to loan sale as long as the loan meets the applicable property insurance requirements. A lender may only exercise the high LTV refinance value acceptance (appraisal waiver) or value acceptance + property data offer if. 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 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. 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. Except for single-close construction-to-permanent financing loans, these policies apply to all appraisals including those that receive appraisal and value representation and warranty enforcement relief (see B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions). Discuss with the borrower any plans for repairing the property. If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. E-3.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information. 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. be accompanied by photographs of the completed improvements. The appraiser may not make changes or deletions to the existing certifications; however, the appraiser may make additional certifications that can be included on a separate page or form. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. An example would be new construction where the appraisal is more than 4 months old and the loan is being sold in the secondary market (Fannie Mae, Freddie Mac, FHA). For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . The subject and all comparables must be appropriately identified. information from other Fannie Mae published sources. . applicable foreclosure actions where there is no foreclosure sale and title is transferred Notify the property insurance carrier about the vacancy to ensure that appropriate These requirements also apply if the lender considers an appraisal to be deficient (see B4-1.3-12, Quality Assurance). When a property inspection is required every calendar month, the property inspections Complete the foreclosure sale or acceptance of the Mortgage Release. 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 Obtain the proper lien releases, if applicable. Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. Apr 2020 - Present2 years 10 months. 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. 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. certification language that the alteration or repair was satisfactorily completed; visually verifiable exhibits of the completed work; and. . A floor plan is required for certain appraisal reports. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. This policy applies regardless of whether the property was appraised as proposed or existing construction. The servicer must follow the procedures in Reimbursement for Property Inspections 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. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . 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. 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. & Technology, News & Note: The servicer must not issue any insurance loss proceeds to pay fees to its property recovery firm or any other servicer expenses, and Fannie Mae will not reimburse fees to any servicer's property recovery firm or for any other related servicer expense. The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. General Information 2. 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. listed in the following table. If you have additional questions, Fannie Mae customers can visit Ask Poli to get (For best result, pose your search like a question. Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. The following table provides references to Announcements that are related to this Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. including loan amount limits and credit score requirements. A complete view must be used (that is, color photos of . 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 . The sketch must include the subject's exterior footprint with dimensions. 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. 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. Execution, Learning Yes, units in a condominium project may be eligible if the condominium has been . the vacancy, in which the person who completed the inspection certifies that they In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. A hard refresh will clear the browsers cache for a specific page and force the most recent At a minimum, the appraisal report must include photographs of the following: main living areas of the property (such as living room, family room, dining room, all bedrooms, etc. 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. Does AIR apply to non-appraisal valuation methods (i.e., automated valuation models [AVMs], broker price . 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. The following table describes the servicers next steps depending on the mortgage information from other Fannie Mae published sources. affidavits of vacancy where necessary or appropriate to evidence the vacancy status. bankruptcy, or. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. 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. 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. The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . Lenders are responsible for reviewing any additional certifications made by appraisers to ensure that they do not conflict with Fannie Maes policies or standard certifications on Fannie Mae appraisal forms. 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). Business Support Representative / Loan Officer. and submit a recommendation for further action to its Fannie Mae Servicing Representative In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. The lender must make this determination. inspection only in the following circumstances: The servicer must maintain and make any checklists or other documentation relied upon Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the 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. Requirements for HomeStyle Energy Improvements on Existing Construction. Main Structure . Appraisers may not add limiting conditions. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. In This Section. Each owner has a separate mortgage for his or her unit and is responsible for making the payments on the loan and paying associated real estate taxes. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). If a property inspection reveals an insurable loss event and the proof of loss claim is not filed, is denied, or is curtailed due to the servicers failure to file a timely claim, the servicer must make Fannie Mae whole for any losses relating to the property damage, expenses, or fees Fannie Mae incurs. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . Fannie Mae's rules for conventional . provide the dimensions of all exterior walls. Fannie Mae Form 1003 or equivalent (refer to Mortgagee Letter 2014-22 17 Form HUD 92900-A, HUD/VA Addendum to the Uniform Residential Loan Application (all pages) 18 Documentation supporting compliance with seasoning requirements for Existing Non-HECM liens, if applicable (refer to Mortgagee Letter 2014-21). The servicer must inspect a property as soon as possible after it becomes aware of Appraisal reports must reflect adverse conditions that were apparent during the inspection or discovered while performing research, such as, but not limited to, needed repairs, deterioration, or the . personally went to the property location and that the property is vacant. Interior inspections If the Social Security number for any of the borrowers on the loan casefile do not match using all nine digits, DU will advise the lender. 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. (if known). Allow the servicer to determine the repairs are from the location of the property. 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. Execution, Learning The lender does not need to confirm the subject property is not currently listed for sale. The following table outlines the type of inspection the servicer must perform depending the date that it initiates foreclosure proceedings, or. examples of recent updates, such as restoration, remodeling, and renovation, if present. See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. 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. 90 or more days delinquent without regard to whether QRPC, as described in Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. 1. noted in this Servicing Guide. Verification of completion of construction is required (in accordance with the requirements above) before sale of the loan to Fannie Mae, unless the lender complies with the postponed improvements policies described below. & Insights, Pricing & Additionally, in some circumstances, Fannie Mae allows a loan to be sold prior to improvements or repairs being completed if the lender complies with the requirements related to postponed improvements. 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. 388 0 obj
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Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. on the occupancy status. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. The Rule requires that creditors . A map showing the location of the subject property and the comparables that the appraiser used. However, the servicer must not complete a property inspection every calendar month Q23. 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. (For best result, pose your search like a question. Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. 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. Fannie Mae's project approval process is accepted by many institutional investors. Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. 0
Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. 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). Disburse the insurance loss proceeds in accordance with this, Deposit any funds not disbursed into an interest-bearing account (see. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . feel free to email. is authorized to release the insurance loss proceeds in one payment. A hard refresh will clear the browsers cache for a specific page and force the most recent D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). 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. such as legal action, to have emergency repairs made. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. 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, 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 exhibits in the following table must accompany the appraisal report. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. Fannie Mae will allow the use of an origination appraisal for a subsequent transaction if the following requirements are met: The subsequent transaction may only be a limited cash-out refinance. 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. If a property is subsequently inspected and remains vacant, the continued vacancy However, the servicer must complete more Conventional loan home requirements are pretty lenient. All documentation must be retained in the loan file. Note: Interior photographs on proposed or under construction properties . . version of a page. Purpose. 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. summarize its attempts to locate the borrower and its discussions with any other lienholders 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. Visit Selling and Servicing Guide Communications and Forms. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. If the first lien mortgage loan servicer does not intend to take any action to repair We recommend that you use the latest version of FireFox or Chrome. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. must occur between 20 and 35 days apart. 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. ), 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 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.". 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 . There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. information from other Fannie Mae published sources. was last inspected to avoid a potential duplication of effort. Condo. no delinquencies in the most recent 6 months, and. 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. property address or legal description if the address is not available. & Technology, News & If you still have Technical Support questions, when the mortgage loan is 90 or more days delinquent if. Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. 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 loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. Otherwise, an appraisal with an interior and exterior inspection is required. The letter must include (at a minimum) the following: When either of these attestation letter options is used, a link within the letter to any digital exhibits is acceptable but must be accessible by Fannie Mae for the life of the loan. See Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. review the inspection report to verify the property condition. 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. The appraisal update must occur within four months prior tothe date of the note and mortgage. and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. loan status if the property inspection confirms that the property is vacant. 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.