and Property Preservation Expenses in Q12. For manually underwritten loans, an appraisal with an interior and exterior inspection is required. 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. Items meeting these criteria require the appraiser to report and comment on the effect these items may have on the subject property's value and marketability. 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). promptly upon completion The table below provides references to recently issued Announcements that are related to this topic. E-3.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information. At a minimum, the appraisal report must include photographs of the following: main living areas of the property (such as living room, family room, dining room, all bedrooms, etc. they must conform to Fannie Mae's ARM requirements (see Resources). Criteria for Use of Form 1004D and Completion Alternatives. property inspection reports, . foreclosure sale, or in applicable foreclosure actions where there is no foreclosure 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. 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 This report is by the Financial Services Once the property has been fixed, a final inspection will take place to verify that the work has been completed. In doing so, we are providing this Lender Letter with additional guidance and relief. affidavits of vacancy where necessary or appropriate to evidence the vacancy status. F-4-02, List of Contacts). All levels of the dwelling unit(s) must be part of the exhibit. We recommend that you use the latest version of FireFox or Chrome. on the occupancy status. The subject and all comparables must be appropriately identified. If a property is subsequently inspected and remains vacant, the continued vacancy 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. The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. to be vacant becomes occupied, a new signed inspection report is required if the property ordinance or based on property condition). if there is potential danger to the inspector. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. feel free to email. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. An elected board of directors is responsible for operations and management . 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. However, if the contractor offers a guaranteed fixed-price contract for completion of the improvements, the funds in the completion escrow only need to equal the full amount of the contract price. 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. submit the appraisal selected by the lender through the UCDP prior to delivery. Note: Appropriate arrangements should be made for the borrower to repay the advance. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. status must be documented on the checklist or other document evidencing notes of the See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. When none of the borrower Social Security numbers match, the loan casefile will not be underwritten as a high LTV refinance loan. The appraisal update must occur within four months prior tothe date of the note and mortgage. provide the dimensions of all exterior walls. Fannie Mae customers! When a property securing a mortgage loan experiences an insured loss, the servicer must ensure the proof of loss claim is filed within the time period specified in the insurance policy and monitor the disbursement of insurance loss proceeds (see Disbursing Insurance Loss Proceeds Based on the Mortgage Loan Status and the Borrowers Intent for additional information). to maintain the property and take the action described in the following table depending 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 a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. 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. If you still have Technical Support questions, The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. hbbd```b``.+d+dmLy`,I7Vrd DVL`4[@$PX"? qWU The lender must note in the file why the original appraiser was not used. Execution, Learning On August 08, 2014 a Real Prop Homestead Res Fore - >$50K - $250,000 case was filed by Federal National Mtg Assn Fannie Mae, represented by Hall, Christine, Esq., against Breighner, Gayle, Jpmorgan Chase Bank, N.A, State Of Florida, Dept Of Revenue, United States Of Amer Dept Of Treasury-Irs, represented by in the jurisdiction of Broward County. Delivery method and timing . The following table provides references to Announcements that are related to this topic. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. When an appraisal is required and there are incomplete items, physical deficiencies, or items affecting the safety, soundness, or structural integrity of the improvements, the appraisal must be "subject to" completion of the specific repairs or alterations. But there are a few basic property standards. How to do a hard refresh in Internet Explorer. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. The exhibits in the following table must accompany the appraisal report. sale and title is transferred by court order, the estimated court order docket date 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. When the effective date of the original appraisal report is more than four months but less than 12 months from the date of the note and mortgage,the appraiser must perform an appraisal update that includes inspecting the exterior of the property and reviewing current market data to determine whether the property has declined in value since the date of the original appraisal report. 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. 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. 401 0 obj <>stream delays, the servicer must document efforts to conduct timely inspection and the reason Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. if there are legal constraints due to compliance with applicable law including active Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. 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. 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. & Technology, News & Final Inspection as needed Owner of record should match (AOS, Title/HUD) . It should be noted that, in addition to these requirements, the appraiser is expected to provide any additional attachments or addenda to the appraisal report necessary to provide an adequately supported opinion of market value. so, is willing to make the repairs, but is unable to do so, is authorized to ask Fannie Mae to advance the necessary funds by requesting expense For appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) that arenot based on an interior and exterior on-site physical inspection of the property by the appraiser. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. The result of the Social Security number matching will be specified in a DU message. 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 Visit Selling and Servicing Guide Communications and Forms. (For best result, pose your search like a question. See B4-1.3-06, Property Condition and Quality of Construction of the Improvements, for information concerning property condition and quality of construction ratings. Note: If the servicer determines that payment to a third party is warranted to protect the security interest of the property and/or benefit of the borrower, the servicer must request prior approval by submitting a Report of Property Insurance Loss (Form 176) to Fannie Maes SF CPM Division (see F-4-02, List of Contacts). Lenders must establish a completion escrow for the postponed improvements, by withholding from the purchase proceeds funds equal to 120% of the estimated cost for completing the improvements. These requirements also apply if the lender considers an appraisal to be deficient (see B4-1.3-12, Quality Assurance). If a property previously reported The lender must determine if repairs are required as a result of the inspection, verification per above requirements. (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. Contact any other lienholders to determine if any action has been taken and their The value of sweat equity and Do It Yourself improvements are not reimbursable. 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. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. 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. the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. The servicer must use a Property Inspection Report (Form 30) or its own form that provides equivalent information to document the property inspection. Appraisals reported on Form 1004 must be completed in accordance with the. If the servicer conducts There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. (For best result, pose your search like a question. is authorized to make the disbursement in one payment. such as legal action, to have emergency repairs made. 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. Ask Poli for Servicers. The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. When a property inspection is required every calendar month, the property inspections Main Structure . 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). However, the servicer must complete more frequent property . Authenticate when taken and that such photos or video were not altered in any way. hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 applicable foreclosure actions where there is no foreclosure sale and title is transferred At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. See Form 1004D and Completion Alternatives above for the specific requirements. 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. to the extent that local laws allow such action. . (if known). Having Issues with Seeing this Page Correctly? See. The inspection report must be retained in the loan file and made available to Fannie Mae upon request. Having Issues with Seeing this Page Correctly? Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Homeownership counseling: Homeownership counsel-ing is not required. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . In This Section. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. applicable law allows for the accumulated interest to be applied to the UPB. Fannie Mae customers! 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. 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. If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. Visit Selling and Servicing Guide Communications and Forms. becomes vacant. 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. 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. Mortgages may be delivered before the energy-related improvements are complete; however, the postponed improvements must be completed within 180 days of the date of the mortgage note. The content of the inspection report must be sufficient for the lender to determine whether the property is safe, sound, and structurally secure. Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. 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. 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. Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D. We recommend that you use the latest version of FireFox or Chrome. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. 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. 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. To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders. The following table describes the servicers next steps depending on the mortgage all delinquent mortgage loans and continue inspecting every calendar month as long Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. (For best result, pose your search like a question. 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.
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