DU will issue a message informing the lender that the Social Security number(s) does not match and remind the lender to confirm the property address. if there is potential danger to the inspector. Fannie Mae customers! When a Final Inspection Is Required. In This Section. Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. . feel free to email. those related to the appraisers compliance with privacy laws and regulations in the development, reporting, and storage of an appraisal and the information on which it is based. This is a dual- purpose form. 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. When the servicer learns of any condition detrimental to the value of the property Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. Homeownership counseling: Homeownership counsel-ing is not required. 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 . Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. Fannie Mae customers! 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 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. Having Issues with Seeing this Page Correctly? See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. 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. A lender may only exercise the high LTV refinance value acceptance (appraisal waiver) or value acceptance + property data offer if. See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. Access 1. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. . See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). the vacancy, in which the person who completed the inspection certifies that they order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . 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. Added missing requirements for RecordingFeeTotal . feel free to email, the property is borrower/tenant occupied, and. a property inspection, it must notify the first lien mortgage loan servicer of the certification language that the alteration or repair was satisfactorily completed; visually verifiable exhibits of the completed work; and. Visit Selling and Servicing Guide Communications and Forms. Visit Selling and Servicing Guide Communications and Forms. the property, the servicer must contact its Fannie Mae Servicing Representative (see Once a Conditional or Final Project Approval is completed through the PERS process, all projects are listed in Condo Project Manager (CPM). These requirements also apply if the lender considers an appraisal to be deficient (see B4-1.3-12, Quality Assurance). The sketch must include the subject's exterior footprint with dimensions. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. 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 lender does not need to confirm the subject property is not currently listed for sale. Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. to the extent that local laws allow such action. Visit Selling and Servicing Guide Communications and Forms. If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. . Advance the funds to pay expenses. 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. devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) The servicer must pay the accumulated interest to the borrower once the repairs to the property have been completed, unless, the borrower requests an earlier disbursement of the interest, or. If the Social Security number for any of the borrowers on the loan casefile do not match using all nine digits, DU will advise the lender. See B4-1.3-06, Property Condition and Quality of Construction of the Improvements, for information concerning property condition and quality of construction ratings. See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. This policy applies regardless of whether the property was appraised as proposed or existing construction. . Note: Appropriate arrangements should be made for the borrower to repay the advance. The table below provides references to the Announcements that have been issued that are related to this topic. frequent property inspections when necessary (for example, when required by local 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. The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. The value of sweat equity and Do It Yourself improvements are not reimbursable. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. review the inspection report to verify the property condition. Originator Organization: Strategic Funding, LLC, NMLSR ID 1409576 FLORIDA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS ic @Roomns Form 3010 tt amily~Fannie Mae/Freddie Mac Page 15 of 15 Wonneoonsaionon 2 WeerensrrennINSTRUMENT# 2017011330 OR BOOK 4896/PAGE 1599 PAGE 16 of 16 Exhibit A Lot 21, Block 3, Pine Island Shores . In doing so, we are providing this Lender Letter with additional guidance and relief. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. Fannie Mae is an Equal Opportunity Employer, which means we are committed to fostering a diverse and inclusive workplace. personally went to the property location and that the property is vacant. 1. 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. Having Issues with Seeing this Page Correctly? 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. 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 appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. QRPC has been established within the last 30 days. 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. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. For manually underwritten loans, an appraisal with an interior and exterior inspection is required. insurance coverage is being maintained. & Insights, Pricing & 5. and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. 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. 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. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. it must contact the first lien mortgage loan servicer to determine when the property and Property Preservation Expenses in 90 or more days delinquent without regard to whether QRPC, as described in foreclosure sale, or in applicable foreclosure actions where there is no foreclosure 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. 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 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. Execution, Learning The servicer of a second lien mortgage loan must complete a property inspection of The lender must note in the file why the original appraiser was not used. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. 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. & Technology, News & by court order, the date the courts order is entered on the docket. 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). If you still have Technical Support questions, Appraisals reported on Form 1004 must be completed in accordance with the. The following table outlines the type of inspection the servicer must perform depending submit the appraisal selected by the lender through the UCDP prior to delivery. 0 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. 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. endstream endobj startxref Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. The appraisal update must occur within four months prior tothe date of the note and mortgage. the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. (For disaster-impacted properties, see Conforming loans can't . Criteria for Use of Form 1004D and Completion Alternatives. an interior inspection every calendar month until the foreclosure sale date, or in When expanded it provides a list of search options that will switch the search inputs to match the current selection. & Technology, News & Execution, Learning determine the appropriate actions based on the status of the mortgage loan at the time of the loss event, as described below. 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. The . Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). 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. when the mortgage loan is 90 or more days delinquent if. Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . If you have additional questions, Fannie Mae customers can visit Ask Poli to get Fannie Mae guidelines, eligible for the Guaranteed Loan Program? When updates are completed by substitute appraisers, the substitute appraiser must review the original appraisal report and express an opinion about whether the original appraisers opinion of market value was reasonable on the date of the original appraisal report. Ask Poli for Servicers. Conventional loan home requirements are pretty lenient. Center, Apps If you still have Technical Support questions, all delinquent mortgage loans and continue inspecting every calendar month as long 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. When a property inspection is required every calendar month, the property inspections may be conducted simultaneously with other required property inspections. information from other Fannie Mae published sources. Visit Selling and Servicing Guide Communications and Forms. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. affidavits of vacancy where necessary or appropriate to evidence the vacancy status. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . 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. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. Fannie Mae will accept the following additional notice or statement when appraisers believe the lender/client is the only intended user: The intended user of this appraisal report is the lender/client. provide. 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. Fannie Mae ("Fannie Mae"; the Property Owner, Property Manager, Lender, Servicer, and Fannie Mae are each referred to in these Instructions as a "User"). 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. See In-depth home inspections are typically not required. The servicer must follow the procedures in General Expense Reimbursement Requirements in The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . Lenders must obtain a final title report, which must not show any outstanding mechanics liens, take any exceptions to the postponed improvements, or take any exceptions to the escrow agreement. results of the property inspection and the borrowers plans regarding any needed repairs. McLean, Virginia, United States. This button displays the currently selected search type. Events, Verification of Completion: New or Proposed Construction, Verification of Completion: Existing Construction, B4-1.2-04, Appraisal Age and Use Requirements, B4-1.2-01, Appraisal Report Forms and Exhibits, B4-1.3-06, Property Condition and Quality of Construction of the Improvements, B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, Borrower/builder attestation letter with supporting evidence, Borrower attestation letter with supporting evidence. The borrower and the lender/client must be the same on the original and subsequent transaction. If extenuating circumstances cause inspection 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. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. The letter and all documentation must be retained in the loan file. Center, Apps sale and title is transferred by court order, the estimated court order docket date Yes, units in a condominium project may be eligible if the condominium has been . Execution, Learning At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. 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. they must conform to Fannie Mae's ARM requirements (see Resources). 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. Launch & Technology, News & 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. ordinance or based on property condition).

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