See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. Lenders must establish a completion escrow for the postponed energy-related improvements by withholding funds equal to 120% of the estimated cost for completing the improvements. the possibility that the property may be vacant or abandoned. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. ); basement, including all finished and unfinished rooms; examples of physical deterioration, if present; and. The lender must determine that all eligibility requirements are met for manually underwritten loans. 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. 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. Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. if there are legal constraints due to compliance with applicable law including active Q12. topic. Submit a request for expense reimbursement. 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. Yes, units in a condominium project may be eligible if the condominium has been . 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). applicable foreclosure actions where there is no foreclosure sale and title is transferred Allow the servicer to determine the repairs are from the location of the property. This is a dual- purpose form. When a Final Inspection Is Required. When the Borrower Does Not Intend to Make Repairs: If a borrower does not want to repair or restore the property, the servicer must take the actions described in the following table. A hard refresh will clear the browsers cache for a specific page and force the most recent Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. loan status if the property inspection confirms that the property is vacant. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. feel free to email. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research 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 . promptly upon completion A map showing the location of the subject property and the comparables that the appraiser used. If you still have Technical Support questions, 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 . 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. represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. When there is a Social Security number match, DU will underwrite the loan casefile as a high LTV refinance loan. This topic contains information about the following: When an appraisal is obtained, the property must be appraised within the 12 months prior to the date of the note and mortgage. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. 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. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . F-4-02, List of Contacts). These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. Valuation Requirements. Except for single-close construction-to-permanent financing loans, these policies apply to all appraisals including those that receive appraisal and value representation and warranty enforcement relief (see B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions). In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. QRPC has been established within the last 30 days. If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. Business Support Representative / Loan Officer. Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. This topic contains information about underwriting requirements for the high LTV refinance option, including: High LTV refinance loans may be underwritten using DU or manually, with the exception of loans subject to the Alternative Qualification Path (which must be manually underwritten). version of a page. The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. 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. A link to the digital exhibits from within the form is acceptable but must be accessible by Fannie Mae for the life of the loan. 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. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . Launch Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. 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. Feb 2022 - Present1 year 2 months. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. The property data may be collected through secondary data sources or by someone other than the appraiser. Make immediate arrangements to protect the property from vandalism and the elements Ask Poli for Servicers. See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. In doing so, we are providing this Lender Letter with additional guidance and relief. examples of recent updates, such as restoration, remodeling, and renovation, if present. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. 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. Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) Fannie Mae customers! & Technology, News & & Technology, News & an MBS mortgage loan serviced under the special servicing option. Meets with direct prospects, as well as referred by realtors, developers . 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. on the borrowers action. 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. 0 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. 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. 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. use any insurance loss proceeds to reduce the outstanding mortgage loan debt. The completion escrow may not adversely affect the mortgage insurance or title insurance. is authorized to release the insurance loss proceeds in one payment. & Insights, Pricing & In all cases, the lender must verify completion before the loan is sold to Fannie Mae. For manually underwritten loans, an appraisal with an interior and exterior inspection is required. The servicer must order a property inspection on or after the 90th day of delinquency Center, Apps See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. Appraisal Updates & Completion Form. 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 lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. See Overview of General Servicer Duties and Responsibilities in feel free to email. the date that it initiates foreclosure proceedings, or. Visit Selling and Servicing Guide Communications and Forms. 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. . . Execution, Learning Condo. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. 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. a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the Whenthe appraisal showsthe existence of minor conditions or deferred maintenance that does not affect the safety, soundness, or structural integrity of the property, these items must be reflected in the appraiser'sopinion of value and the appraisal report must be completed "as-is." D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). However, the servicer must not complete a property inspection every calendar month Any lender that sells loans to Fannie Mae can accept a PERS approval. The Rule requires that creditors . Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. The following table outlines the type of inspection the servicer must perform depending 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 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. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). But there are a few basic property standards. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. Once the property has been fixed, a final inspection will take place to verify that the work has been completed. ), 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, Research Fannie Mae's 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 . by court order, the date the courts order is entered on the docket. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. Appraisers may not add limiting conditions. 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. Execution, Learning Having Issues with Seeing this Page Correctly? Purpose. Fannie Mae customers! Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. 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. 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. By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. (For best result, pose your search like a question. to the extent that local laws allow such action. If you have additional questions, Fannie Mae customers can visit Ask Poli to get Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. paid invoices for the alterations or repairs. 90 or more days delinquent without regard to whether QRPC, as described in 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. 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). all delinquent mortgage loans and continue inspecting every calendar month as long was last inspected to avoid a potential duplication of effort. Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). A lender may only exercise the high LTV refinance value acceptance (appraisal waiver) or value acceptance + property data offer if. However, the servicer must complete more frequent property . In This Section. %%EOF Q23. Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. Otherwise, an appraisal with an interior and exterior inspection is required. Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. 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 traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. How to do a hard refresh in Internet Explorer. (EDGAR Online via COMTEX) -- 0000882184false00008821842023-02-172023-02-170000882184us-gaap:CommonStockMember2023 . Once a Conditional or Final Project Approval is completed through the PERS process, all projects are listed in Condo Project Manager (CPM). If you still have Technical Support questions, The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. Complete the foreclosure sale or acceptance of the Mortgage Release. Otherwise, an appraisal with an interior and exterior inspection is required. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Criteria for Use of Form 1004D and Completion Alternatives. The table below provides references to recently issued Announcements that are related to this topic. See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. to maintain the property and take the action described in the following table depending Requirements for HomeStyle Energy Improvements on Existing Construction. becomes vacant. and Property Preservation Expenses in version of a page. We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . 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. 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 . FinCEN explained that these entities were involved in providing financing to the residential mortgage market, making them vulnerable to fraud and other . do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. Events, Appraiser Certifications and Limiting Conditions, B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements, B4-1.3-05, Improvements Section of the Appraisal Report, For traditional appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) based on an interior and exterior on-site physical inspection of the property by the appraiser. & Insights, Pricing & A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. 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. 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. 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. 30UL Hna`@,v?,A .mxC3k00?xg>bb8"D+,,S 7 L@h_- e?` 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. When the servicer learns of any condition detrimental to the value of the property Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. 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. Fannie Mae's project approval process is accepted by many institutional investors. 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. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. 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 . Fannie Mae customers! F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. All completion documentation must include one or more visually verifiable exhibits. information from other Fannie Mae published sources. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. If extenuating circumstances cause inspection Having Issues with Seeing this Page Correctly? If you have additional questions, Fannie Mae customers can visit Ask Poli to get (see See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. 1. A4-2.1-02, Property Inspection Vendor Management and Oversight for information on property inspection vendor management. inspection only in the following circumstances: The servicer must maintain and make any checklists or other documentation relied upon The following table provides references to Announcements that are related to this topic. A term used to define a broad base of financial instruments, including swaps, options, and futures contracts, whose value is based upon, or derived from, an underlying rate, price, or index (such as interest rates, foreign currency, commodities, or prices of other financial instruments such as stocks or bonds). & Insights, Pricing & Appraisal Update and/or Completion Report (Form 1004D). for any exception in the mortgage loan file. status must be documented on the checklist or other document evidencing notes of the Any funds remaining in the escrow account after the work is completed must be applied to reduce the unpaid principal balance of the mortgage loan. 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. 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. version of a page. According to the 2021 FHA appraisal guidelines, all properties being purchased with an FHA-insured mortgage loan must be appraised by a licensed, HUD-approved home appraiser. To request reimbursement, the servicer must follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement. version of a page. Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. Execution, Learning The lender must make this determination. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. The servicer must follow the procedures in Reimbursement for Property Inspections The table below provides references to recently issued Announcements that are related to this topic. frequent property inspections when necessary (for example, when required by local 1. 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. no delinquencies in the most recent 6 months, and. The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. Center, Apps Notify the property insurance carrier about the vacancy to ensure that appropriate version of a page. The lender must note in the file why the original appraiser was not used. The following table provides references to Announcements that are related to this & Technology, News & 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. & Technology, News & the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. 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. Homeownership counseling: Homeownership counsel-ing is not required. It is the lender's responsibility to find an alternative, qualified inspector when the The servicer must inspect a property as soon as possible after it becomes aware of If you still have Technical Support questions, 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). Fannie Mae guidelines, eligible for the Guaranteed Loan Program? Ask Poli for Servicers.
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