The table below provides references to recently issued Announcements that are related to this topic. The content of the inspection report must be sufficient for the lender to determine whether the property is safe, sound, and structurally secure. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. information from other Fannie Mae published sources. 401 0 obj <>stream Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. 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. 0 Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. 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. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. 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. (For best result, pose your search like a question. View full Fact Sheet. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research If you have additional questions, Fannie Mae customers can visit Ask Poli to get review the inspection report to verify the property condition. There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. 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. version of a page. The lender must make this determination. to be vacant becomes occupied, a new signed inspection report is required if the 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. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. 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 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. the borrower is performing under the applicable bankruptcy plan. an MBS mortgage loan serviced under the special servicing option. In This Section. documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. 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. The following table provides references to Announcements that are related to this 1. must follow up until the repairs have been completed. 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. repairs made. 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). affidavits of vacancy where necessary or appropriate to evidence the vacancy status. To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders. Visit Selling and Servicing Guide Communications and Forms. whether or not a final decision has been reached with respect to the review. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. A floor plan is required for certain appraisal reports. Fannie Mae reserves the right to require, the use of a prescribed form of checklist, or. the possibility that the property may be vacant or abandoned. QRPC has been established within the last 30 days. version of a page. complete a property inspection every calendar month as long as the mortgage loan remains The subject and all comparables must be appropriately identified. Photo Requirements Use only clear, focused, color photos. applicable law allows for the accumulated interest to be applied to the UPB. personally went to the property location and that the property is vacant. When none of the borrower Social Security numbers match, the loan casefile will not be underwritten as a high LTV refinance loan. and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. The servicer must follow the procedures in Reimbursement for Property Inspections 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. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. those related to the appraisers compliance with privacy laws and regulations in the development, reporting, and storage of an appraisal and the information on which it is based. If the appraisal report is greater than fourmonths fromthe date of the note and mortgage, then an appraisal update is required. Fannie Mae is an Equal Opportunity Employer, which means we are committed to fostering a diverse and inclusive workplace. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. The sketch must include the subject's exterior footprint with dimensions. all delinquent mortgage loans and continue inspecting every calendar month as long the property, the servicer must contact its Fannie Mae Servicing Representative (see Interior inspections if there are legal constraints due to compliance with applicable law including active Meets with direct prospects, as well as referred by realtors, developers . Criteria for Use of Form 1004D and Completion Alternatives. loan status if the property inspection confirms that the property is vacant. do not affect the ability to obtain an occupancy permit. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. The table below provides references to recently issued Announcements that are related to this topic. 214.03 C Fannie Mae Confirmation of Full Payoff Amount. Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. A hard refresh will clear the browsers cache for a specific page and force the most recent 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. We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research 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. Added missing requirements for RecordingFeeTotal . Once a Conditional or Final Project Approval is completed through the PERS process, all projects are listed in Condo Project Manager (CPM). 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. The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. 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, (For best result, pose your search like a question. information from other Fannie Mae published sources. 3. If you still have Technical Support questions, For appraisal updates and/or completion reports for all one- to four-unit properties. if there is potential danger to the inspector. Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. they must conform to Fannie Mae's ARM requirements (see Resources). The servicer must obtain a signed copy of the inspection report that first reported foreclosure sale, or in applicable foreclosure actions where there is no foreclosure 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. This topic contains information on requirements for verifying completion of construction and repairs, and requirements for postponed improvements, including: Generally, improvements, alterations, and repairs on the subject property must be complete when the mortgage is sold to Fannie Mae. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. ), 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 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 vacancy, in which the person who completed the inspection certifies that they When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. We recommend that you use the latest version of FireFox or Chrome. 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. is authorized to release the insurance loss proceeds in one payment. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . We recommend that you use the latest version of FireFox or Chrome. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). & Insights, Pricing & The inspection report must be retained in the loan file and made available to Fannie Mae upon request. Center, Apps when the mortgage loan is 90 or more days delinquent if. See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. Proper inspection training is a key component . Oct 2011 - Jan 20208 years 4 months. version of a page. Fannie Mae's rules for conventional . 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. Center, Apps 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. (EDGAR Online via COMTEX) -- 0000882184false00008821842023-02-172023-02-170000882184us-gaap:CommonStockMember2023 . 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. Any lender that sells loans to Fannie Mae can accept a PERS approval. or. Obtain the proper lien releases, if applicable. If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. This button displays the currently selected search type. & Technology, News & School of Multifamily Property Inspections. (if known). A hard refresh will clear the browsers cache for a specific page and force the most recent examples of recent updates, such as restoration, remodeling, and renovation, if present. Execution, Learning Uniform Residential Appraisal Report ( Form 1004 ) For traditional appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) based on an interior and exterior on-site physical inspection of the property by the appraiser. 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. 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 . For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. . No additional intended users are identified by the appraiser.. See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. paid invoices for the alterations or repairs. Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. The letter and all documentation must be retained in the loan file. Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. inspection, but no additional signature is required. The following table outlines the type of inspection the servicer must perform depending By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. the date that it initiates foreclosure proceedings, or. 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. However, the servicer must complete more See Overview of General Servicer Duties and Responsibilities in Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. When updates are completed by substitute appraisers, the substitute appraiser must review the original appraisal report and express an opinion about whether the original appraisers opinion of market value was reasonable on the date of the original appraisal report. Overall, the home inspection requirements . Having Issues with Seeing this Page Correctly? final inspection? In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . 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. However, the servicer must not complete a property inspection every calendar month Inspection Training on program requirements, processes, and documentation. If you still have Technical Support questions, 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. If a property is subsequently inspected and remains vacant, the continued vacancy In-depth home inspections are typically not required. 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. (For best result, pose your search like a question. If you have additional questions, Fannie Mae customers can visit Ask Poli to get The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. Feb 2022 - Present1 year 2 months. feel free to email. Center, Apps Before the servicer of a second lien mortgage loan conducts a property inspection, The following table provides references to Announcements that are related to this topic. devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) The servicer of a second lien mortgage loan must complete a property inspection of Obtain complete details on the damage to the property and determine the needed repairs. 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. (For best result, pose your search like a question. 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. 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. Events, Appraiser Certifications and Limiting Conditions, B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements, B4-1.3-05, Improvements Section of the Appraisal Report, For traditional appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) based on an interior and exterior on-site physical inspection of the property by the appraiser. promptly upon completion For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. is authorized to make the disbursement in one payment. 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. 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. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. 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. . The servicer must complete a final property inspection within 35 days prior to the Atlanta, Georgia. 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. Note: Appropriate arrangements should be made for the borrower to repay the advance. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. Once a certificate of completion 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. ), Selling, Securitizing, and Delivering Loans, Subpart B5: Unique Eligibility & Underwriting Considerations, Chapter B5-7: High Loan-to-Value Refinance Option, Research 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). 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. noted in this Servicing Guide. Discuss with the borrower any plans for repairing the property. F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. 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. applicable foreclosure actions where there is no foreclosure sale and title is transferred If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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.". 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. When an appraisal is required and there are incomplete items, physical deficiencies, or items affecting the safety, soundness, or structural integrity of the improvements, the appraisal must be "subject to" completion of the specific repairs or alterations. If extenuating circumstances cause inspection House report on REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES OF THE UNITED STATES HOUSE OF REPRESENTATIVES FOR THE ONE HUNDRED AND SEVENTEENTH CONGRESS. Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. 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 Execution, Learning A term used to define a broad base of financial instruments, including swaps, options, and futures contracts, whose value is based upon, or derived from, an underlying rate, price, or index (such as interest rates, foreign currency, commodities, or prices of other financial instruments such as stocks or bonds). When the servicer learns of any condition detrimental to the value of the property 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.