Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. 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. When expanded it provides a list of search options that will switch the search inputs to match the current selection. An elected board of directors is responsible for operations and management . 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. 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. Criteria for Use of Form 1004D and Completion Alternatives. 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.". For traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. The 1004d form by Fannie Mae and 442 form by Freddie Mac is used to complete an appraisal update, final inspection, or in some circumstances, both for all one- to four-unit properties. feel free to email. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. (Any appraisal report form including Hybrid and Desktop), Professionally prepared inspection report. A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. & Insights, Pricing & It is the lender's responsibility to find an alternative, qualified inspector when the These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. insurance coverage is being maintained. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. 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. 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. Photo Requirements Use only clear, focused, color photos. Fannie Mae And Freddie Mac. Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. School of Multifamily Property Inspections. Center, Apps & Insights, Pricing & Condo. If you have additional questions, Fannie Mae customers can visit Ask Poli to get report. Note: Required for case numbers . 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 feel free to email. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . Fannie Mae customers! The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. See. Fannie Mae customers! For non-routine litigation matters, Notice of Filing - Original Note, Copy of Original Mortgage d, Assignment of Mortgage, Demand Letter , Loan Payment Hitory & Verified Statement as to Plaintiff's CostsParty: Plaintiff Federal Nat Mtg Assn ("FANNIE MAE") 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. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. The servicer of a second lien mortgage loan must complete a property inspection of If you still have Technical Support questions, ), 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 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. all delinquent mortgage loans and continue inspecting every calendar month as long the possibility that the property may be vacant or abandoned. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. When a successful submission to UCDP is received by only one Agency, then follow the guidance below: o When using DU, a successful UCDP document file status is required from Fannie Mae. A hard refresh will clear the browsers cache for a specific page and force the most recent final inspection? Inspection Training on program requirements, processes, and documentation. by court order, the date the courts order is entered on the docket. on the borrowers action. However, the servicer must complete more frequent property . property address or legal description if the address is not available. (For best result, pose your search like a question. 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. & Technology, News & inspection, but no additional signature is required. Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. No additional intended users are identified by the appraiser.. F-4-02, List of Contacts). to maintain the property and take the action described in the following table depending 401 0 obj <>stream 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. mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. ); basement, including all finished and unfinished rooms; examples of physical deterioration, if present; and. 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. All levels of the dwelling unit(s) must be part of the exhibit. If you still have Technical Support questions, For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. %%EOF Fannie Mae guidelines, eligible for the Guaranteed Loan Program? 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. 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). such as legal action, to have emergency repairs made. 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. The MarketWatch News Department was not involved in the creation of this content. & Insights, Pricing & Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. & Insights, Pricing & If extenuating circumstances cause inspection In all cases, the lender must verify completion before the loan is sold to Fannie Mae. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. 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. Appraisal Updates & Completion Form. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. 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. 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 addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. endstream endobj 366 0 obj <. reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such The servicer is authorized to consider a curbside (drive-by) inspection as an exterior The lender must make this determination. Note: If the servicer is unable to establish contact with the borrower or the property is abandoned, the servicer must ensure the property is maintained and secured by complying with 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. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. repairs made. A floor plan is required for certain appraisal reports. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research or. when the mortgage loan is 90 or more days delinquent if. 0 A hard refresh will clear the browsers cache for a specific page and force the most recent 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. 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. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. Form. 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. Fannie Mae will accept the following additional notice or statement when appraisers believe the lender/client is the only intended user: The intended user of this appraisal report is the lender/client. A complete view must be used (that is, color photos of . Having Issues with Seeing this Page Correctly? 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. The table below provides references to recently issued Announcements that are related to this topic. 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. In This Section. The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. determine the appropriate actions based on the status of the mortgage loan at the time of the loss event, as described below. & Insights, Pricing & At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. The loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. delays, the servicer must document efforts to conduct timely inspection and the reason The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). Servicer Action. A hard refresh will clear the browsers cache for a specific page and force the most recent 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. The servicer must use a Property Inspection Report (Form 30) or its own form that provides equivalent information to document the property inspection. Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. Center, Apps Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. 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 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. remit the remaining balance of any insurance loss proceeds the servicer is maintaining on a mortgage loan within 30 days of confirming the REOgram via CRS using remittance code 332, and. Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. Fannie Mae customers! version of a page. Loan-level price adjustments: . is authorized to release an initial disbursement of insurance loss proceeds up to the greater of, the amount by which the release funds exceed the sum of the UPB, accrued interest, and advances on the mortgage loan; and. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). A hard refresh will clear the browsers cache for a specific page and force the most recent Authenticate when taken and that such photos or video were not altered in any way. (For best result, pose your search like a question. . Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. information from other Fannie Mae published sources. 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 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. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. 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, 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. 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. The PCA provides: an assessment of the Property's current physical condition; hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. 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. If you have additional questions, Fannie Mae customers can visit Ask Poli to get See B4-1.3-06, Property Condition and Quality of Construction of the Improvements, for information concerning property condition and quality of construction ratings. version of a page. See Overview of General Servicer Duties and Responsibilities in 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. For appraisal updates and/or completion reports for all one- to four-unit properties. After a satisfactory Form 1004D or completion alternative 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. Access 1. If you still have Technical Support questions, 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). However, the servicer must not complete a property inspection every calendar month The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. version of a page. Discuss with the borrower any plans for repairing the property. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. property inspection reports, . 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). But there are a few basic property standards. 3. The lender must note in the file why the original appraiser was not used. information from other Fannie Mae published sources. It also helps to protect the lender's investment in the property. 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. Mortgage Loans Current or Less Than 31 Days Delinquent: The servicer must follow the requirements described in the following table for a mortgage loan that is current or less than 31 days delinquent at the time of the loss event. Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. 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). 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. 1. Otherwise, an appraisal with an interior and exterior inspection is required. 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. Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. Requirements for HomeStyle Energy Improvements on Existing Construction. 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). Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. 5.3 (Typo . 214.03 C Fannie Mae Confirmation of Full Payoff Amount. F-4-02, List of Contacts). intentions. 365 0 obj <> endobj Note: See Establishing Written Policies or Procedures in A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements and A4-1-02, Establishing Custodial Bank Accounts for additional details, including requirements for addressing unapplied funds held in the T&I custodial account and for reporting the status of funds in the custodial account to Fannie Mae. 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.