If you still have Technical Support questions, School of Multifamily Property Inspections. If you have additional questions, Fannie Mae customers can visit Ask Poli to get The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. such as legal action, to have emergency repairs made. Clear, descriptive color photographs showing the front, back, and a street scene of the subject property and the front of each comparable. 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. This topic contains information about the following: When an appraisal is obtained, the property must be appraised within the 12 months prior to the date of the note and mortgage. The letter and all documentation must be retained in the loan file. 388 0 obj
<>/Filter/FlateDecode/ID[<49E9915CB71A4842BC45108436D22720><969FBA886B8FA547A58D137564D07023>]/Index[365 37]/Info 364 0 R/Length 108/Prev 163715/Root 366 0 R/Size 402/Type/XRef/W[1 3 1]>>stream
1. hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 including loan amount limits and credit score requirements. The . 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. The table below provides references to recently issued Announcements that are related to this topic. on the occupancy status. If you still have Technical Support questions, Form 1004 also may be used for two-unit properties, if each of the units is occupied by one of the co-borrowers as theirprincipal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes.
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. The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. 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. to the extent that local laws allow such action. 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. See. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. . 30UL Hna`@,v?,A
.mxC3k00?xg>bb8"D+,,S 7 L@h_- e?`
For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. Servicer Action. provide the dimensions of all exterior walls. 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. & Insights, Pricing & Note: The servicer and/or the insurance company may not have reason to believe that a supplemental claim will be filed for additional damages at the time the initial loss proceeds are paid by the insurer; therefore, the servicer must disburse any insurance loss proceeds based on the requirements in this Guide without regard to whether supplemental loss proceeds will be received. 5. If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. Otherwise, Form 1007 is not required. However, lenders are not required to comply with the waiting period and re-establishment of credit requirements for significant derogatory credit events or the payoff or satisfaction of a judgment identified on the credit report. Appraisal Update and/or Completion Report (Form 1004D). Attempt to locate the borrower to determine the reason for the vacancy. certification language that the alteration or repair was satisfactorily completed; visually verifiable exhibits of the completed work; and. 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. There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. feel free to email, the property is borrower/tenant occupied, and. Launch Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. Ask Poli for Servicers. When the effective date of the original appraisal report is more than 12 months from the date of the note and mortgage (with or without an appraisal update) a new appraisal report is required. applicable foreclosure actions where there is no foreclosure sale and title is transferred Conventional loan home requirements are pretty lenient. The following table describes the servicers next steps depending on the mortgage Center, Apps 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). intentions. for any exception in the mortgage loan file. topic. endstream
endobj
startxref
In all cases, the lender must verify completion before the loan is sold to Fannie Mae. 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 McLean, Virginia, United States. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. (if known). Execution, Learning 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. If the servicer conducts There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. version of a page. feel free to email. paid invoices for the alterations or repairs. information from other Fannie Mae published sources. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. 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. The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. A hard refresh will clear the browsers cache for a specific page and force the most recent Otherwise, an appraisal with an interior and exterior inspection is required. See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. 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. 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). Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. Feb 2022 - Present1 year 2 months. Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. 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. (For best result, pose your search like a question. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. No additional intended users are identified by the appraiser.. they must conform to Fannie Mae's ARM requirements (see Resources). a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the Any lender that sells loans to Fannie Mae can accept a PERS approval. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. to maintain the property and take the action described in the following table depending See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. Appraisal reports must reflect adverse conditions that were apparent during the inspection or discovered while performing research, such as, but not limited to, needed repairs, deterioration, or the . The value of sweat equity and Do It Yourself improvements are not reimbursable. and Property Preservation Expenses in The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . When the servicer learns of any condition detrimental to the value of the property ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research submit the appraisal selected by the lender through the UCDP prior to delivery. We recommend that you use the latest version of FireFox or Chrome. A hard refresh will clear the browsers cache for a specific page and force the most recent We recommend that you use the latest version of FireFox or Chrome. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. 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. Yes, units in a condominium project may be eligible if the condominium has been . This policy applies regardless of whether the property was appraised as proposed or existing construction. The completion escrow may not adversely affect the mortgage insurance or title insurance. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. At a minimum, the appraisal report must include photographs of the following: main living areas of the property (such as living room, family room, dining room, all bedrooms, etc. Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. Having Issues with Seeing this Page Correctly? Fannie Mae customers! by court order, the date the courts order is entered on the docket. Freddie Mac. QRPC has been established within the last 30 days. Note: Interior photographs on proposed or under construction properties . When one borrower is on the new loan casefile but more than one borrower is on the existing loan, the DU message will state that it appears that a borrower is being removed with transaction and refer the lender to the Selling Guide for additional requirements on removing a borrower with a high LTV refinance transaction. Condo. report. Meets with direct prospects, as well as referred by realtors, developers . Ask Poli for Servicers. Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). the offer is not more than four months old on the date of the note and the mortgage. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . The servicer is authorized to consider a curbside (drive-by) inspection as an exterior For traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. In This Section. 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 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. The appraisal update must occur within four months prior tothe date of the note and mortgage. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research When the effective date of the original appraisal report is more than four months but less than 12 months from the date of the note and mortgage,the appraiser must perform an appraisal update that includes inspecting the exterior of the property and reviewing current market data to determine whether the property has declined in value since the date of the original appraisal report. agrees to arrange for the necessary repairs. copies of the appraisals and other written valuations to the applicants . It also helps to protect the lender's investment in the property. 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. promptly upon completion See Notify the property insurance carrier about the vacancy to ensure that appropriate For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. The PCA provides: an assessment of the Property's current physical condition; 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. COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). & Technology, News & 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. Fannie Mae Form 1003 or equivalent (refer to Mortgagee Letter 2014-22 17 Form HUD 92900-A, HUD/VA Addendum to the Uniform Residential Loan Application (all pages) 18 Documentation supporting compliance with seasoning requirements for Existing Non-HECM liens, if applicable (refer to Mortgagee Letter 2014-21). Apr 2020 - Present2 years 10 months. an interior inspection every calendar month until the foreclosure sale date, or in Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. The MarketWatch News Department was not involved in the creation of this content. Loan-level price adjustments: . 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. 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. 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. %PDF-1.6
%
The borrower/builder attestation letter must include (at a minimum) the following items: If a letter signed by both parties is not obtainable, then a Form 1004D completed by the appraiser is required. When a property inspection is required every calendar month, the property inspections 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. Each Fannie Mae appraisal report form includes an appraisers certification (and, if applicable, a supervisory appraisers certification) and a statement of assumptions and limiting conditions. Visit Selling and Servicing Guide Communications and Forms. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Interior inspections The inspection report must be retained in the loan file and made available to Fannie Mae upon request. 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. 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. inspection only in the following circumstances: The servicer must maintain and make any checklists or other documentation relied upon 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). If you have additional questions, Fannie Mae customers can visit Ask Poli to get to be vacant becomes occupied, a new signed inspection report is required if the property Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. Requirements for HomeStyle Energy Improvements on Existing Construction. The servicer of a second lien mortgage loan must complete a property inspection of Otherwise, an appraisal with an interior and exterior inspection is required. If a property previously reported Conforming loans can't . & Insights, Pricing & Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . For non-routine litigation matters, It should be noted that, in addition to these requirements, the appraiser is expected to provide any additional attachments or addenda to the appraisal report necessary to provide an adequately supported opinion of market value. Note: Required for case numbers . & Technology, News & and complete the property inspection no later than the 120th day of delinquency for Once a Conditional or Final Project Approval is completed through the PERS process, all projects are listed in Condo Project Manager (CPM). ), 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 & Insights, Pricing & mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. Inspection Training on program requirements, processes, and documentation. The following table provides references to Announcements that are related to this topic. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Center, Apps feel free to email. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. 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. 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. 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. The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. Obtain the proper lien releases, if applicable. All levels of the dwelling unit(s) must be part of the exhibit. Ensure a full and accurate review of income, assets, credit reports, title, hazard insurance, notes, appraisals for Fannie Mae (DU), Freddie Mac (LP) and Non-QM loan programs for W2 wage-earners . Visit Selling and Servicing Guide Communications and Forms. Yes. repairs made. summarize its attempts to locate the borrower and its discussions with any other lienholders The Fannie Mae "temporary" requirements apply to all condominiums and cooperatives with five or more attached units and went into effect for "whole loans purchased on or after January 1, 2022. However, the servicer must complete more frequent property . If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. The letter must include (at a minimum) the following: When either of these attestation letter options is used, a link within the letter to any digital exhibits is acceptable but must be accessible by Fannie Mae for the life of the loan. Delivery method and timing . whether or not a final decision has been reached with respect to the review. version of a page. The exhibits in the following table must accompany the appraisal report. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. 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. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. The following table outlines the type of inspection the servicer must perform depending Fannie Mae Form 1076 Condominimum Project Questionnaire or equivalent (must include all information on the 1076) . & Insights, Pricing & Acceptable postponed items include items that: are part of the sales contract (third-party contracts are not permissible); are postponed for a valid reason, such as inclement weather or a shortage of building materials; and.