they must conform to Fannie Mae's ARM requirements (see Resources). 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. review the inspection report to verify the property condition. Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. ordinance or based on property condition). provide. 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). At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. Fannie Mae customers! Atlanta, Georgia. Contact any other lienholders to determine if any action has been taken and their reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such complete a property inspection every calendar month as long as the mortgage loan remains 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. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. 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 . A hard refresh will clear the browsers cache for a specific page and force the most recent Yes, units in a condominium project may be eligible if the condominium has been . endstream endobj startxref Center, Apps Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. The servicer must follow the procedures in Reimbursement for Property Inspections Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. 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. FinCEN explained that these entities were involved in providing financing to the residential mortgage market, making them vulnerable to fraud and other . Having Issues with Seeing this Page Correctly? the borrower is performing under the applicable bankruptcy plan. and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. 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. listed in the following table. Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. 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. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. However, the servicer must complete more If the final title report is issued before the completion of the improvements, lenders must obtain an endorsement to the title policy that ensures the priority of Fannie Maes lien. (For best result, pose your search like a question. The servicer must inspect a property as soon as possible after it becomes aware of Condo. report. 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. Photos must remain clear at a dimension of 3 " x 5". The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . & Technology, News & 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. 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. 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. %%EOF Lenders must obtain a final title report, which must not show any outstanding mechanics liens, take any exceptions to the postponed improvements, or take any exceptions to the escrow agreement. Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. Fannie Mae requires the lender to disclose any information regarding environmental hazards to the appraiser and note the individual mortgage file accordingly if the real estate agent, the property seller, the property purchaser, or any other party to the mortgage transaction informs the lender that an environmental hazard exists in or on the property, or in the vicinity of . 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. Fannie Mae customers! Otherwise, an appraisal with an interior and exterior inspection is required. 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). a property inspection, it must notify the first lien mortgage loan servicer of the Appraisers may not add limiting conditions. Criteria for Use of Form 1004D and Completion Alternatives. 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. feel free to email. The servicer must release the insurance loss proceeds received from the insurance carrier based on the status of the mortgage loan at the time of the loss event. final inspection? To request reimbursement, the servicer must follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement. Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. School of Multifamily Property Inspections. if there is potential danger to the inspector. We recommend that you use the latest version of FireFox or Chrome. information from other Fannie Mae published sources. Center, Apps ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research Otherwise, Form 1007 is not required. 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, Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. Servicer Action. Fannie Mae released its first economic commentary of 2023 earlier this month. The Rule requires that creditors . Having Issues with Seeing this Page Correctly? endstream endobj 366 0 obj <. The servicer must use a Property Inspection Report (Form 30) or its own form that provides equivalent information to document the property inspection. Visit Selling and Servicing Guide Communications and Forms. 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. Conventional loan home requirements are pretty lenient. 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). How to do a hard refresh in Internet Explorer. Homeownership counseling: Homeownership counsel-ing is not required. feel free to email, the property is borrower/tenant occupied, and. Visit Selling and Servicing Guide Communications and Forms. The sketch must include the subject's exterior footprint with dimensions. 0 Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. Having Issues with Seeing this Page Correctly? We recommend that you use the latest version of FireFox or Chrome. 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. Desktop Appraisals 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. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Valuation Requirements. Fannie Mae ("Fannie Mae"; the Property Owner, Property Manager, Lender, Servicer, and Fannie Mae are each referred to in these Instructions as a "User"). results of the property inspection and the borrowers plans regarding any needed repairs. The servicer must complete a final property inspection within 35 days prior to the hbbd```b``.+d+dmLy`,I7Vrd DVL`4[@$PX"? qWU For traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. We recommend that you use the latest version of FireFox or Chrome. Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. 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. Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. If the servicer conducts the date that it initiates foreclosure proceedings, or. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. 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 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. (For best result, pose your search like a question. 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. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. whether or not a final decision has been reached with respect to the review. A complete view must be used (that is, color photos of . If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. Photo Requirements Use only clear, focused, color photos. 1. The PCA provides: an assessment of the Property's current physical condition; Ask Poli for Servicers. If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. An electronic signature is acceptable when obtaining a signed copy of the inspection foreclosure sale, or in applicable foreclosure actions where there is no foreclosure The lender must determine if repairs are required as a result of the inspection, verification per above requirements. & Insights, Pricing & If the appraiser indicates on the Form 1004D that the property value has declined, then the lender must obtain a new appraisal for the property. Mortgages may be delivered before the energy-related improvements are complete; however, the postponed improvements must be completed within 180 days of the date of the mortgage note. when the mortgage loan is 90 or more days delinquent if. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research adhere to a policy of selecting the most reliable appraisal rather than the appraisal that states the highest value, document the reasons for relying on the appraisal, and. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. Access 1. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. If the appraisal report is greater than fourmonths fromthe date of the note and mortgage, then an appraisal update is required. Center, Apps There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. If you still have Technical Support questions, Having Issues with Seeing this Page Correctly? This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. Clear, descriptive color photographs showing the front, back, and a street scene of the subject property and the front of each comparable. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. an interior inspection every calendar month until the foreclosure sale date, or in The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. Authenticate when taken and that such photos or video were not altered in any way. Otherwise, an appraisal with an interior and exterior inspection is required. 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. 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. 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. 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. Having Issues with Seeing this Page Correctly? 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). (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). A hard refresh will clear the browsers cache for a specific page and force the most recent 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. When the servicer learns of any condition detrimental to the value of the property Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. 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 lender may obtain this form for the purpose of reporting gross monthly rent at delivery. . The servicer is authorized to consider a curbside (drive-by) inspection as an exterior & Insights, Pricing & 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. topic. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. When a property inspection is required every calendar month, the property inspections . Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Any funds remaining in the escrow account after the work is completed must be applied to reduce the unpaid principal balance of the mortgage loan. 90 or more days delinquent without regard to whether QRPC, as described in There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. to maintain the property and take the action described in the following table depending Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? must adhere to the following requirements. the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. In doing so, we are providing this Lender Letter with additional guidance and relief. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . The following table describes the servicers next steps depending on the mortgage Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. the execution of a Mortgage Release, or the mortgage loan becomes current unless otherwise However, the servicer must complete more frequent property . 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. devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) version of a page. Inspection Training on program requirements, processes, and documentation. Execution, Learning feel free to email. The completion escrow may not adversely affect the mortgage insurance or title insurance. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. 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. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. Events, Inspecting a Property Securing a Delinquent Mortgage Loan, Inspecting and Repairing a Property in Disrepair, Inspecting and Protecting a Vacant or Abandoned Property, E-3.3-03, Inspecting Properties Prior to Foreclosure Sale, A4-2.1-02, Property Inspection Vendor Management and Oversight, D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower, Property Preservation Matrix and Reference Guide, A2-1-01, General Servicer Duties and Responsibilities, D2-2-01, Achieving Quality Right Party Contact with a Borrower, an interior inspection as allowed by applicable law, agrees to arrange for the necessary repairs and has the financial resources to do We recommend that you use the latest version of FireFox or Chrome. . Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. Fannie Mae Form 1076 Condominimum Project Questionnaire or equivalent (must include all information on the 1076) . If you still have Technical Support questions, must occur between 20 and 35 days apart. (For best result, pose your search like a question. Center, Apps applicable foreclosure actions where there is no foreclosure sale and title is transferred 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.". View full Fact Sheet. The following table outlines the type of inspection the servicer must perform depending In This Section. information from other Fannie Mae published sources. A hard refresh will clear the browsers cache for a specific page and force the most recent Miami, Florida, United States. 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. 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. The intended use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report form, and definition of market value. 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. repairs made. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. information from other Fannie Mae published sources. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. must determine what action the first lien mortgage loan servicer intends to take. on the borrowers action. is authorized to release the insurance loss proceeds in one payment. Use of Form 1004D and completion alternatives varies depending on the type of valuation method and condition (completion, alteration, inspection, or repair) that must be verified. Form. Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. (Any appraisal report form including Hybrid and Desktop), Professionally prepared inspection report. Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. Single-Family Comparable Rent Schedule (Form 1007), Required if the property is a one-unit investment property and the borrower is using rental income to qualify. The value of sweat equity and Do It Yourself improvements are not reimbursable. The table below provides references to the Announcements that have been issued that are related to this topic. The following table describes the action that the servicer of a second lien mortgage Q23. The lender must note in the file why the original appraiser was not used. Step. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. Delivery method and timing . 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. 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. COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. applicable law allows for the accumulated interest to be applied to the UPB. For appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) that arenot based on an interior and exterior on-site physical inspection of the property by the appraiser.