209.04 Additional Requirements for Monthly Remittance for Security Transactions. ordinance or based on property condition). However, if the contractor or builder 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. When a property inspection is required every calendar month, the property inspections Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. 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 . 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 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. The lender must note in the file why the original appraiser was not used. 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). If you have additional questions, Fannie Mae customers can visit Ask Poli to get intentions. Fannie Mae's project approval process is accepted by many institutional investors. property address or legal description if the address is not available. A hard refresh will clear the browsers cache for a specific page and force the most recent If the appraisal report is greater than fourmonths fromthe date of the note and mortgage, then an appraisal update is required. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. Note: Appropriate arrangements should be made for the borrower to repay the advance. Valuation Requirements. The servicer must inspect a property as soon as possible after it becomes aware of Obtain the proper lien releases, if applicable. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. Complete the foreclosure sale or acceptance of the Mortgage Release. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained 5.3 (Typo . The table below provides the postponed improvement requirements for a HomeStyle Energy loan. Events, Age of Appraisal and Appraisal Update Requirements, Multiple Appraisals of the Subject Property, Use of an Appraisal for a Subsequent Transaction, B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions, How to do a hard refresh in Internet Explorer. Otherwise, Form 1007 is not required. If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . If you still have Technical Support questions, Appraisal Updates & Completion Form. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. 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. The following table describes the action that the servicer of a second lien mortgage It is the lender's responsibility to find an alternative, qualified inspector when the 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. 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. The value of sweat equity and Do It Yourself improvements are not reimbursable. Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. Note: Interior photographs on proposed or under construction properties . 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). 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. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. We recommend that you use the latest version of FireFox or Chrome. . Fannie Mae customers! the possibility that the property may be vacant or abandoned. 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. This report is by the Financial Services Added missing requirements for RecordingFeeTotal . insurance coverage is being maintained. 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. Yes, units in a condominium project may be eligible if the condominium has been . Does AIR apply to non-appraisal valuation methods (i.e., automated valuation models [AVMs], broker price . Launch For manually underwritten loans, an appraisal with an interior and exterior inspection is required. Apr 2020 - Present2 years 10 months. Fannie Mae guidelines, eligible for the Guaranteed Loan Program? is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? However, the servicer must complete more 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. When a Final Inspection Is Required. The result of the Social Security number matching will be specified in a DU message. must follow up until the repairs have been completed. 5. (For disaster-impacted properties, see with the requirements in B4-1.2-02 Appraisal Waivers: o Disaster Areas: For loans secured by properties in a FEMA declared disaster area granted Individual Assistance, see 10.10.7.1, Declared Disaster Areas - Property Inspection Types o Full appraisals are required for the following irrespective of DU findings: Purchases of REO properties, The following table outlines the type of inspection the servicer must perform depending Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Form. 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. When a borrower Social Security number is matched using 7 or 8 digits of the 9-digit Social Security number, the DU message will specify that the Social Security numbers are one or two digits different and will require the lender to confirm the borrowers on the existing loan are the same borrowers that will be on the new loan. 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. A hard refresh will clear the browsers cache for a specific page and force the most recent Contact any other lienholders to determine if any action has been taken and their The following table provides references to Announcements that are related to this Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. 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. 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. 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 property, the servicer must contact its Fannie Mae Servicing Representative (see the execution of a Mortgage Release, or the mortgage loan becomes current unless otherwise 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. endstream endobj startxref Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. the borrower is performing under the applicable bankruptcy plan. Obtain complete details on the damage to the property and determine the needed repairs. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). . For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. submit the appraisal selected by the lender through the UCDP prior to delivery. loan status if the property inspection confirms that the property is vacant. (see The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. 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). 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. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. agrees to arrange for the necessary repairs. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. Photos must remain clear at a dimension of 3 " x 5". Before the servicer of a second lien mortgage loan conducts a property inspection, Events, Chapter B-5, Property and Flood Insurance Loss Events and Claim Settlements, Disbursing Insurance Loss Proceeds Based on the Mortgage Loan Status and the Borrower's Intent, Performing Remote Insured Loss Repair Inspections, Depositing the Insurance Loss Proceeds Not Disbursed, E-3.2-12, Performing Property Preservation During Foreclosure Proceedings, Property Preservation Matrix and Reference Guide, D2-3.1-01, Determining the Appropriate Workout Option, A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements, A4-1-02, Establishing Custodial Bank Accounts. to be vacant becomes occupied, a new signed inspection report is required if the property The servicer is authorized to consider a curbside (drive-by) inspection as an exterior delays, the servicer must document efforts to conduct timely inspection and the reason 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 appraisal updates and/or completion reports for all one- to four-unit properties. copies of the appraisals and other written valuations to the applicants . feel free to email. do not affect the ability to obtain an occupancy permit. However, the servicer must complete more frequent property . The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. a full payment has been received within the last 30 days, a workout option has been approved and the borrower is performing under the plan, (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. 90 or more days delinquent without regard to whether QRPC, as described in Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. information from other Fannie Mae published sources. Submit a request for expense reimbursement. See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. The servicer must obtain a signed copy of the inspection report that first reported Visit Selling and Servicing Guide Communications and Forms. Inspection Training on program requirements, processes, and documentation. Business Support Representative / Loan Officer. review the inspection report to verify the property condition. 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. . 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. The table below provides references to recently issued Announcements that are related to this topic. 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). version of a page. Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. (For best result, pose your search like a question. version of a page. 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. If the first lien mortgage loan servicer does not intend to take any action to repair the property, the servicer must contact its Fannie Mae Servicing Representative (see F-4-02, List of Contacts). 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement We recommend that you use the latest version of FireFox or Chrome. A map showing the location of the subject property and the comparables that the appraiser used. ), Selling, Securitizing, and Delivering Loans, Subpart B5: Unique Eligibility & Underwriting Considerations, Chapter B5-7: High Loan-to-Value Refinance Option, Research 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). The appraisal update must occur within four months prior tothe date of the note and mortgage. 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. Center, Apps Q12. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. A hard refresh will clear the browsers cache for a specific page and force the most recent If you still have Technical Support questions, When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. 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. The following table describes the servicers next steps depending on the mortgage & Insights, Pricing & Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. But there are a few basic property standards. . Visit Selling and Servicing Guide Communications and Forms. Ask Poli for Servicers. 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. 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. If you still have Technical Support questions, Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies.

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