Execution, Learning We recommend that you use the latest version of FireFox or Chrome. The following table provides references to Announcements that are related to this topic. ), Selling, Securitizing, and Delivering Loans, Subpart B5: Unique Eligibility & Underwriting Considerations, Chapter B5-7: High Loan-to-Value Refinance Option, Research If the borrower has not filed the claim, the servicer must file a proof of loss claim under the standard mortgagee clause and collect the insurance loss proceeds on Fannie Mae's behalf. Once a Conditional or Final Project Approval is completed through the PERS process, all projects are listed in Condo Project Manager (CPM). Make immediate arrangements to protect the property from vandalism and the elements According to the 2021 FHA appraisal guidelines, all properties being purchased with an FHA-insured mortgage loan must be appraised by a licensed, HUD-approved home appraiser. Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. 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. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. or the need for urgent repairs, the servicer must remind the borrower of their obligation The servicer is authorized to consider a curbside (drive-by) inspection as an exterior With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. status must be documented on the checklist or other document evidencing notes of the Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. The appraisal update must occur within four months prior tothe date of the note and mortgage. endstream endobj startxref 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, information from other Fannie Mae published sources. Launch Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. determine the appropriate actions based on the status of the mortgage loan at the time of the loss event, as described below. See results of the property inspection and the borrowers plans regarding any needed repairs. 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 sketch must include the subject's exterior footprint with dimensions. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. 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. A hard refresh will clear the browsers cache for a specific page and force the most recent submit the appraisal selected by the lender through the UCDP prior to delivery. loan status if the property inspection confirms that the property is vacant. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. All qualified applicants will receive consideration for employment without regard to race, religion, national origin, gender, gender identity, sexual orientation, personal appearance, protected veteran status, disability . Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. ); examples of recent updates, such as restoration, remodeling, and renovation, if present. must occur between 20 and 35 days apart. . 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. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. Notify the property insurance carrier about the vacancy to ensure that appropriate Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. The following table provides a list of account requirements. 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement and Property Preservation Expenses in This report is by the Financial Services If extenuating circumstances cause inspection Advance the funds to pay expenses. Valuation Requirements. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained Loan-level price adjustments: . such as legal action, to have emergency repairs made. 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 Mae's lien. 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. A lender may only exercise the high LTV refinance value acceptance (appraisal waiver) or value acceptance + property data offer if. Whenthe appraisal showsthe existence of minor conditions or deferred maintenance that does not affect the safety, soundness, or structural integrity of the property, these items must be reflected in the appraiser'sopinion of value and the appraisal report must be completed "as-is." Visit Selling and Servicing Guide Communications and Forms. Authenticate when taken and that such photos or video were not altered in any way. & Technology, News & If you still have Technical Support questions, Any lender that sells loans to Fannie Mae can accept a PERS approval. Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. Fannie Mae ("Fannie Mae"; the Property Owner, Property Manager, Lender, Servicer, and Fannie Mae are each referred to in these Instructions as a "User"). For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. 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. However, the servicer must complete more frequent property . Otherwise, an appraisal with an interior and exterior inspection is required. 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. for any exception in the mortgage loan file. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure 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. 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 completion escrow may not adversely affect the mortgage insurance or title insurance. Photo Requirements Use only clear, focused, color photos. 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. This is a dual- purpose form. 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. 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. The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. 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. See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. For appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) that are based on interior and exterior property data collection. & Insights, Pricing & 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. 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). version of a page. & Insights, Pricing & The table below provides references to recently issued Announcements that are related to this topic. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. inspection, but no additional signature is required. Q23. 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. 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. If you still have Technical Support questions, Appraisers may not add limiting conditions. Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. Execution, Learning See Overview of General Servicer Duties and Responsibilities in 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. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. 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. Fannie Mae customers! including loan amount limits and credit score requirements. & Technology, News & In addition, appraisals for units in condo projects that consist solely of detached dwellings may be documented on Form 1004, if the appraiser includes an adequate description of the project and information about the homeowners association fees and the quality of the project maintenance. The 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. is authorized to release the insurance loss proceeds in one payment. to maintain the property and take the action described in the following table depending In all cases, the lender must verify completion before the loan is sold to Fannie Mae. 2. The servicer must follow the procedures in Reimbursement for Property Inspections The servicer must obtain a signed copy of the inspection report that first reported These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. 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 loan is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z, the loan must comply with the Alternative Qualification Path requirements. 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. F-4-02, List of Contacts). an interior inspection every calendar month until the foreclosure sale date, or in 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. 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. 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, copies of the appraisals and other written valuations to the applicants . ); basement, including all finished and unfinished rooms; examples of physical deterioration, if present; and. on the borrowers action. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. Fannie Mae And Freddie Mac. When the servicer learns of any condition detrimental to the value of the property The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. 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. FinCEN explained that these entities were involved in providing financing to the residential mortgage market, making them vulnerable to fraud and other . There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. 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. 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. 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. ), 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 This Section. Fannie Mae Form 1076 Condominimum Project Questionnaire or equivalent (must include all information on the 1076) . Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. 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. Execution, Learning Having Issues with Seeing this Page Correctly? 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. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. (see For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. %PDF-1.6 % Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . Main Structure . A footprint sketch or floor plan must be software-generated (not hand drawn) and indicate dimensions and calculations that demonstrate how thegross living area was derived. When there is a Social Security number match, DU will underwrite the loan casefile as a high LTV refinance loan. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. Having Issues with Seeing this Page Correctly? loan must take depending on the borrowers action. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies.
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