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. issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . 209.04 Additional Requirements for Monthly Remittance for Security Transactions. See Form 1004D and Completion Alternatives above for the specific requirements. A map showing the location of the subject property and the comparables that the appraiser used. & Insights, Pricing & (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). Conforming loans can't . When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. E-3.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information. reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such 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. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. It also helps to protect the lender's investment in the property. Overall, the home inspection requirements . Photos must remain clear at a dimension of 3 " x 5". applicable foreclosure actions where there is no foreclosure sale and title is transferred See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. 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. The property data may be collected through secondary data sources or by someone other than the appraiser. 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. Having Issues with Seeing this Page Correctly? Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . Loan-level price adjustments: . the offer is not more than four months old on the date of the note and the mortgage. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. 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). on the occupancy status. Note: Appropriate arrangements should be made for the borrower to repay the advance. 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 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). feel free to email. If a property previously reported feel free to email. The following table describes the action that the servicer of a second lien mortgage is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, 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. 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 . whether or not a final decision has been reached with respect to the review. An elected board of directors is responsible for operations and management . The borrower and the lender/client must be the same on the original and subsequent transaction. Once a certificate of completion is obtained, the lender must release the final draw from the escrow account, which should include any funds in excess of the amount needed to pay for completion of the postponed items. If you still have Technical Support questions, We recommend that you use the latest version of FireFox or Chrome. Execution, Learning Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. It is the lender's responsibility to find an alternative, qualified inspector when the The following table provides references to Announcements that are related to this topic. 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. Having Issues with Seeing this Page Correctly? 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. must occur between 20 and 35 days apart. be accompanied by photographs of the completed improvements. Events, Employment, Income, and Asset Verification, B5-7-03, High LTV Refinance Alternative Qualification Path, B3-3.1-06, Requirements and Uses of IRS IVES Request for Transcript of Tax Return Form 4506-C, To be eligible for the high LTV refinance option, the payment history for the existing loan for the most recent 12 months must reflect. 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. to be vacant becomes occupied, a new signed inspection report is required if the property See Overview of General Servicer Duties and Responsibilities in This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. version of a page. 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. hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 The servicer must inspect a property as soon as possible after it becomes aware of The table below provides references to the Announcements that have been issued that are related to this topic. Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. at closing, remit the remaining balance of any insurance loss proceeds via CRS using remittance code 332. feel free to email. when the mortgage loan is 90 or more days delinquent if. . for any exception in the mortgage loan file. 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. Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. The completion escrow may not adversely affect the mortgage insurance or title insurance. Submit a Report of Property Insurance Loss (Form 176) to Fannie Maes SF CPM division (see F-4-02, List of Contacts within five business days of the servicer receiving notification of the damages. inspection, but no additional signature is required. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. When DU finds a loan for the subject property address using either the address provided on the DU loan application or the standardized address, DU will then confirm that the Social Security number(s) for the borrower(s) on the new loan casefile match those on the existing loan. 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. 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. 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. View full Fact Sheet. 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. Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. The following table outlines the type of inspection the servicer must perform depending In doing so, we are providing this Lender Letter with additional guidance and relief. 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. DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. Each owner has a separate mortgage for his or her unit and is responsible for making the payments on the loan and paying associated real estate taxes. noted in this Servicing Guide. (For best result, pose your search like a question. If, after completion of the review, Fannie Mae determines that the mortgage loan did not meet its eligibility or underwriting requirements and Fannie Mae has incurred a loss by selling the property, the seller/servicer will be required . At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. information from other Fannie Mae published sources. Lenders must review the appraisal to ensure that the property does not have minor conditions or deferred maintenance items that affect the safety, soundness, or structural integrity of the subject property. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. 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. Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. 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 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. Oct 2011 - Jan 20208 years 4 months. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. For appraisal updates and/or completion reports for all one- to four-unit properties. 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. The MarketWatch News Department was not involved in the creation of this content. Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. 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. 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 . all delinquent mortgage loans and continue inspecting every calendar month as long Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. & Technology, News & For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. All completion documentation must include one or more visually verifiable exhibits. Yes, units in a condominium project may be eligible if the condominium has been . 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 . F-4-02, List of Contacts). insurance coverage is being maintained. 5. Fannie Mae customers! Interior inspections Center, Apps frequent property inspections when necessary (for example, when required by local ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research Added missing requirements for RecordingFeeTotal . Ask Poli for Servicers. The appraisal update must occur within four months prior tothe date of the note and mortgage. Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. Discuss with the borrower any plans for repairing the property. 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. devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. Center, Apps a property inspection, it must notify the first lien mortgage loan servicer of the For non-routine litigation matters, 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). The sketch must include the subject's exterior footprint with dimensions. to the extent that local laws allow such action. Visit Selling and Servicing Guide Communications and Forms. 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. complete a property inspection every calendar month as long as the mortgage loan remains Disburse the insurance loss proceeds in accordance with this, Deposit any funds not disbursed into an interest-bearing account (see. This is a dual- purpose form. If a property is subsequently inspected and remains vacant, the continued vacancy 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. Q23. 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. Lenders must obtain evidence of completion and Fannie Mae allows for a variety of methods depending on the type of valuation method and condition (completion, alteration, or repair) that must be confirmed. See. The lender will then evaluate and determine if any additional course of action is required to comply with Fannie Mae's safety, soundness, and structural integrity requirements. Evaluate the borrower's eligibility and cash contribution requirements, if any, based on the status of the mortgage loan at the time of the respective evaluation. (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. Fannie Mae customers! For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. status must be documented on the checklist or other document evidencing notes of the 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. Having Issues with Seeing this Page Correctly? 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. We recommend that you use the latest version of FireFox or Chrome. repairs made. delays, the servicer must document efforts to conduct timely inspection and the reason Make immediate arrangements to protect the property from vandalism and the elements Visit Selling and Servicing Guide Communications and Forms. See copies of the appraisals and other written valuations to the applicants . 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. . & Technology, News & 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. See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. Fannie Mae customers! Complete the foreclosure sale or acceptance of the Mortgage Release. & Insights, Pricing & Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. Miami, Florida, United States. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. The exhibits in the following table must accompany the appraisal report. Otherwise, an appraisal with an interior and exterior inspection is required. 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. version of a page. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. loan status if the property inspection confirms that the property is vacant. Fannie Mae reserves the right to require, the use of a prescribed form of checklist, or. The inspection report must be retained in the loan file and made available to Fannie Mae upon request. The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. . Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. All documentation must be retained in the loan file. The following table provides references to Announcements that are related to this the property, the servicer must contact its Fannie Mae Servicing Representative (see 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. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement When a property inspection is required every calendar month, the property inspections 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. If you still have Technical Support questions, occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. applicable law allows for the accumulated interest to be applied to the UPB. This topic contains information on appraisal report forms and exhibits, including: Appraisers must use the most recent version of the appraisal report forms and include any other information, either as an attachment or addendum to the appraisal report form, needed to adequately support the opinion of market value. Visit Selling and Servicing Guide Communications and Forms. Lenders are responsible for reviewing any additional certifications made by appraisers to ensure that they do not conflict with Fannie Maes policies or standard certifications on Fannie Mae appraisal forms. Notice of Filing - AFFIDAVIT OF COSTS; AFFIDAVIT IN SUPPORT OF MOT FOR FINAL JGMT OF DEFICIENCY & AFFIDAVIT OF APPRISERParty: Plaintiff Dyck-O'Neal, Inc April 18, 2017. 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. 1. 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. 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. Prohibit payment of fees out of the insurance loss proceeds to any public adjusters or other third parties retained by the borrower to assist with the recovery of those proceeds, unless otherwise agreed to by Fannie Mae in writing. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. 30UL Hna`@,v?,A .mxC3k00?xg>bb8"D+,,S 7 L@h_- e?` Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. The following table describes the servicers next steps depending on the mortgage F-4-02, List of Contacts). We recommend that you use the latest version of FireFox or Chrome. 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. 5.3 (Typo . ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research an interior inspection every calendar month until the foreclosure sale date, or in Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. 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. and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. 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. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. In This Section. & Technology, News & The table below provides references to recently issued Announcements that are related to this topic. 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. Ask Poli for Servicers. Center, Apps Borrower/builder attestation letter: For new or proposed construction, a letter is permitted to confirm the property was completed and constructed in conformity with the plans and specifications, amendments, and change orders.