Does AIR apply to non-appraisal valuation methods (i.e., automated valuation models [AVMs], broker price . We recommend that you use the latest version of FireFox or Chrome. inspection only in the following circumstances: The servicer must maintain and make any checklists or other documentation relied upon Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. E-3.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information. These requirements also apply if the lender considers an appraisal to be deficient (see B4-1.3-12, Quality Assurance). See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. 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. The loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. Uniform Residential Appraisal Report ( Form 1004 ) 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. and Property Preservation Expenses in intentions. examples of recent updates, such as restoration, remodeling, and renovation, if present. For appraisal updates and/or completion reports for all one- to four-unit properties. Review and approve the final plans for repair, including obtaining the necessary bids to repair 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 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, We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. 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. 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). After a satisfactory Form 1004D or completion alternative is obtained, the lender must release the final draw from the escrow account, which should include any funds in excess of the amount needed to pay for completion of the postponed items. 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. loan must take depending on the borrowers action. a property inspection, it must notify the first lien mortgage loan servicer of the Note: The servicer must not issue any insurance loss proceeds to pay fees to its property recovery firm or any other servicer expenses, and Fannie Mae will not reimburse fees to any servicer's property recovery firm or for any other related servicer expense. 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 loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. 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. For traditional appraisals of two- to four-unit properties (including two- to four-unit properties in PUD, condo, or co-op projects) based on interior and exterior property inspections. Fannie Mae released its first economic commentary of 2023 earlier this month. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. 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 Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. Fannie Mae And Freddie Mac. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. ), 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 In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. must occur between 20 and 35 days apart. 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. Photo Requirements Use only clear, focused, color photos. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. was last inspected to avoid a potential duplication of effort. In doing so, we are providing this Lender Letter with additional guidance and relief. 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. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Atlanta, Georgia. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. When a Final Inspection Is Required. If a property previously reported occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. on the borrowers action. hbbd```b``.+d+dmLy`,I7Vrd DVL`4[@$PX"? qWU When expanded it provides a list of search options that will switch the search inputs to match the current selection. Center, Apps ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research such as legal action, to have emergency repairs made. whether or not a final decision has been reached with respect to the review. The exhibits in the following table must accompany the appraisal report. Main Structure . We recommend that you use the latest version of FireFox or Chrome. Launch feel free to email. 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. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. We recommend that you use the latest version of FireFox or Chrome. Advance the funds to pay expenses. An electronic signature is acceptable when obtaining a signed copy of the inspection Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. applicable law allows for the accumulated interest to be applied to the UPB. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. When a property inspection is required every calendar month, the property inspections The following table describes the servicers next steps depending on the mortgage Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . Proper inspection training is a key component . Form. An elected board of directors is responsible for operations and management . . & Insights, Pricing & (For best result, pose your search like a question. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. & Technology, News & 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. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. 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. The table below provides references to the Announcements that have been issued that are related to this topic. The servicer must complete a final property inspection within 35 days prior to the 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. This button displays the currently selected search type. 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. 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. 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. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . 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. 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. COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. The result of the Social Security number matching will be specified in a DU message. If the appraiser indicates on the Form 1004D that the property value has not declined, then the lender may proceed with the loan in process without requiring any additional fieldwork. General Information 2. . 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. and complete the property inspection no later than the 120th day of delinquency for Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. See This report is by the Financial Services The appraiser may not make changes or deletions to the existing certifications; however, the appraiser may make additional certifications that can be included on a separate page or form. version of a page. ben suarez bread / joseph wiley kim burrell / fannie mae appraisal reconsideration of value Posted on February 27, 2023 by laguardia airport food terminal c Step. Having Issues with Seeing this Page Correctly? When the effective date of the original appraisal report is more than 12 months from the date of the note and mortgage (with or without an appraisal update) a new appraisal report is required. Obtain the proper lien releases, if applicable. When the servicer learns of any condition detrimental to the value of the property Launch 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 Appraisal Update and/or Completion Report (Form 1004D). affidavits of vacancy where necessary or appropriate to evidence the vacancy status. (For best result, pose your search like a question. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . Business Support Representative / Loan Officer. & Technology, News & Fannie Mae customers! all delinquent mortgage loans and continue inspecting every calendar month as long feel free to email, the property is borrower/tenant occupied, and. 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. as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, 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. 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 table below provides the postponed improvement requirements for a HomeStyle Energy loan. Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. If you have additional questions, Fannie Mae customers can visit Ask Poli to get in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. 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 non-routine litigation matters, We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . If you still have Technical Support questions, The following table describes the action that the servicer of a second lien mortgage Execution, Learning If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. 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. 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. frequent property inspections when necessary (for example, when required by local feel free to email. 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 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. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . Ask Poli for Servicers. If extenuating circumstances cause inspection By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. But there are a few basic property standards. 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. feel free to email. version of a page. 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. 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. Visit Selling and Servicing Guide Communications and Forms. 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. Q23. 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 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. The appraisal update must occur within four months prior tothe date of the note and mortgage. the borrower is performing under the applicable bankruptcy plan. We recommend that you use the latest version of FireFox or Chrome. Before the servicer of a second lien mortgage loan conducts a property inspection, 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. ), Selling, Securitizing, and Delivering Loans, Subpart B5: Unique Eligibility & Underwriting Considerations, Chapter B5-7: High Loan-to-Value Refinance Option, Research If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. complete a property inspection every calendar month as long as the mortgage loan remains property inspection reports, . No additional intended users are identified by the appraiser.. insurance coverage is being maintained. use any insurance loss proceeds to reduce the outstanding mortgage loan debt. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. Otherwise, Form 1007 is not required. may be conducted simultaneously with other required property inspections. Interior inspections Mortgage Loans Current or Less Than 31 Days Delinquent: The servicer must follow the requirements described in the following table for a mortgage loan that is current or less than 31 days delinquent at the time of the loss event. 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. If you still have Technical Support questions, Submit a request for expense reimbursement. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. Freddie Mac. A2-1-01, General Servicer Duties and Responsibilities and the Property Preservation Matrix and Reference Guide for additional information. Once the servicer has confirmed the property is abandoned, the servicer must complete The table below provides references to recently issued Announcements that are related to this topic. . View full Fact Sheet. Visit Selling and Servicing Guide Communications and Forms. information from other Fannie Mae published sources. QRPC has been established within the last 30 days. personally went to the property location and that the property is vacant. DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. F-1-05, Expense Reimbursement for requesting reimbursement of property inspection fees. information from other Fannie Mae published sources. Appraisal Updates & Completion Form. All documentation must be retained in the loan file. (see 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, 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. 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. becomes vacant. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. an interior inspection every calendar month until the foreclosure sale date, or in 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. See Form 1004D and Completion Alternatives above for the specific requirements. 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. loan status if the property inspection confirms that the property is vacant. See 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.
