Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). 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. The following table provides references to Announcements that are related to this topic. a property inspection, it must notify the first lien mortgage loan servicer of the The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. 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 following table provides references to Announcements that are related to this 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. Notify the property insurance carrier about the vacancy to ensure that appropriate These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. F-4-02, List of Contacts). documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. to the extent that local laws allow such action. QRPC has been established within the last 30 days. The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. Execution, Learning 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. We recommend that you use the latest version of FireFox or Chrome. examples of recent updates, such as restoration, remodeling, and renovation, if present. If you still have Technical Support questions, Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . topic. represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained 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 appraisal update must occur within four months prior tothe date of the note and mortgage. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . version of a page. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. 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 . 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. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. A hard refresh will clear the browsers cache for a specific page and force the most recent By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. No additional intended users are identified by the appraiser.. The result of the Social Security number matching will be specified in a DU message. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). Discuss with the borrower any plans for repairing the property. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. Additionally, in some circumstances, Fannie Mae allows a loan to be sold prior to improvements or repairs being completed if the lender complies with the requirements related to postponed improvements. A map showing the location of the subject property and the comparables that the appraiser used. In-depth home inspections are typically not required. hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 The request must include the mortgage loan and property information, a description of the specific damage or loss, details of the insurance claim, and a business justification for the request. A hard refresh will clear the browsers cache for a specific page and force the most recent and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. 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. 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. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. at a minimum: (1) concur with the original appraisal, (2) perform an exterior inspection of the subject property from at least the street, and (3) research, verify, and analyze current market data in order to determine if the property has declined in value since . Feb 2022 - Present1 year 2 months. Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. must follow up until the repairs have been completed. Condo. 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. 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. or the need for urgent repairs, the servicer must remind the borrower of their obligation 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. To request reimbursement, the servicer must follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement. Having Issues with Seeing this Page Correctly? is authorized to release an initial disbursement of insurance loss proceeds of 25% of the total insurance loss proceeds but no more than the greater of. no delinquencies in the most recent 6 months, and. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. If the appraisal report is greater than fourmonths fromthe date of the note and mortgage, then an appraisal update is required. All documentation must be retained in the loan file. 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. If there are minor conditions or deferred maintenance items to be remedied or completed after closing, the lender may escrow for these items at its own discretion and still sellthe loan to Fannie Mae prior to the release of the escrow as long as the lender can ensure that these items do not affect the safety, soundness, or structural integrity of the property. 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. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. The following table describes the servicers next steps depending on the mortgage an interior inspection every calendar month until the foreclosure sale date, or in Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. loan status if the property inspection confirms that the property is vacant. Lender Requirements. & Technology, News & For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. information from other Fannie Mae published sources. Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? 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). 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. 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. The following table describes the action that the servicer of a second lien mortgage The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. F-4-02, List of Contacts). ), 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 devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) feel free to email. 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. 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 The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure Submit a request for expense reimbursement. so, is willing to make the repairs, but is unable to do so, is authorized to ask Fannie Mae to advance the necessary funds by requesting expense Otherwise, an appraisal with an interior and exterior inspection is required. . paid invoices for the alterations or repairs. A hard refresh will clear the browsers cache for a specific page and force the most recent Lenders must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlines in, Lenders must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlined in, Lender must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlined in, How to do a hard refresh in Internet Explorer. Conforming loans can't . 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 The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . 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. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. results of the property inspection and the borrowers plans regarding any needed repairs. When none of the borrower Social Security numbers match, the loan casefile will not be underwritten as a high LTV refinance loan. to be vacant becomes occupied, a new signed inspection report is required if the property In doing so, we are providing this Lender Letter with additional guidance and relief. 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. We recommend that you use the latest version of FireFox or Chrome. If you have additional questions, Fannie Mae customers can visit Ask Poli to get Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. for any exception in the mortgage loan file. Having Issues with Seeing this Page Correctly? Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. The PCA provides: an assessment of the Property's current physical condition; 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. 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. Servicer Action. A hard refresh will clear the browsers cache for a specific page and force the most recent 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. However, the servicer must not complete a property inspection every calendar month The lender must determine that all eligibility requirements are met for manually underwritten loans. See Form 1004D and Completion Alternatives above for the specific requirements. complete a property inspection every calendar month as long as the mortgage loan remains 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. insurance coverage is being maintained. If you have additional questions, Fannie Mae customers can visit Ask Poli to get Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. 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. 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. . as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, (For disaster-impacted properties, see 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. (For best result, pose your search like a question. Conventional loan home requirements are pretty lenient. The lender must note in the file why the original appraiser was not used. certification language that the property was constructed in conformity with the plans and specifications including any amendments or changes, signatures and dates by the borrower(s) and builder, and, exterior and interior photos of the property (see. Once the property has been fixed, a final inspection will take place to verify that the work has been completed. The tables below provide requirements related to existing properties that have physical deficiencies, minor conditions, or deferred maintenance items that may or may not affect the safety, soundness, or structural integrity of the property. 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. (For best result, pose your search like a question. Obtain complete details on the damage to the property and determine the needed repairs. Added missing requirements for RecordingFeeTotal . ordinance or based on property condition). 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. Appraisal and Property Requirements 4 Appraisal (HB -1-3555, Chapter 12) 4 . Q12. . The following table outlines the type of inspection the servicer must perform depending The servicer must inspect a property as soon as possible after it becomes aware of the vacancy, in which the person who completed the inspection certifies that they noted in this Servicing Guide. was last inspected to avoid a potential duplication of effort. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. Fannie Mae will allow the use of an origination appraisal for a subsequent transaction if the following requirements are met: The subsequent transaction may only be a limited cash-out refinance. The table below provides references to recently issued Announcements that are related to this topic. Fannie Mae released its first economic commentary of 2023 earlier this month. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. 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. We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. such as legal action, to have emergency repairs made. . Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . 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. 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. applicable foreclosure actions where there is no foreclosure sale and title is transferred 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. When the servicer learns of any condition detrimental to the value of the property 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. With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. to determine the occupancy status of a property available to Fannie Mae upon request. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. However, if the contractor offers a guaranteed fixed-price contract for completion of the improvements, the funds in the completion escrow only need to equal the full amount of the contract price. An elected board of directors is responsible for operations and management . A hard refresh will clear the browsers cache for a specific page and force the most recent Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. 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. But there are a few basic property standards. The servicer must obtain a signed copy of the inspection report that first reported Authenticate when taken and that such photos or video were not altered in any way. Appraisers may not add limiting conditions. review the inspection report to verify the property condition. 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. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. Desktop Appraisals When the effective date of the original desktop appraisal report is more than four months from the date of the note and mortgage, a new appraisal is required. (For best result, pose your search like a question. Finance is the study and discipline of money, currency and capital assets.It is related to, but not synonymous with economics, which is the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). Advance the funds to pay expenses. feel free to email, the property is borrower/tenant occupied, and. by court order, the date the courts order is entered on the docket. mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. 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. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). final inspection? Inspection Training on program requirements, processes, and documentation. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, & Technology, News & (EDGAR Online via COMTEX) -- 0000882184false00008821842023-02-172023-02-170000882184us-gaap:CommonStockMember2023 . Center, Apps 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. This button displays the currently selected search type. The completion escrow may not adversely affect the mortgage insurance or title insurance. listed in the following table. version of a page. & Technology, News & Interior inspections a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the 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. 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. Freddie Mac.
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