Appraisal and Property Requirements 4 Appraisal (HB -1-3555, Chapter 12) 4 . Credit Risk and Underwriting Policy - Washington DC - Fannie Mae In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. Main Structure . Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. 0 This button displays the currently selected search type. Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. must occur between 20 and 35 days apart. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. report. 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. Authenticate when taken and that such photos or video were not altered in any way. (see 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. 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. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. (For best result, pose your search like a question. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. 1. 401 0 obj <>stream Visit Selling and Servicing Guide Communications and Forms. issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . The following table describes the servicers next steps depending on the mortgage 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. Visit Selling and Servicing Guide Communications and Forms. Notify the property insurance carrier about the vacancy to ensure that appropriate Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . 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. The lender is not required to ensure that the borrower has had these items repaired prior to sale of the loan to Fannie Mae when the appraisal is completed "as-is.". 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. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. The servicer must inspect a property as soon as possible after it becomes aware of 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. must follow up until the repairs have been completed. ); examples of recent updates, such as restoration, remodeling, and renovation, if present. examples of recent updates, such as restoration, remodeling, and renovation, if present. 3. Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 be accompanied by photographs of the completed improvements. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . for any exception in the mortgage loan file. 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 . Notice of Filing - Original Note, Copy of Original Mortgage d, Assignment of Mortgage, Demand Letter , Loan Payment Hitory & Verified Statement as to Plaintiff's CostsParty: Plaintiff Federal Nat Mtg Assn ("FANNIE MAE") B4-1.2-05, Requirements for Verifying Completion and Postponed Appraisals reported on Form 1004 must be completed in accordance with the. View full Fact Sheet. 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. . information from other Fannie Mae published sources. Fannie Mae customers! final inspection? version of a page. ), 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 There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. Q12. An example would be new construction where the appraisal is more than 4 months old and the loan is being sold in the secondary market (Fannie Mae, Freddie Mac, FHA). 10-k 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. 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 . Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. Make immediate arrangements to protect the property from vandalism and the elements Home Inspection | Fannie Mae Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. information from other Fannie Mae published sources. 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. 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. Use of Form 1004D and completion alternatives varies depending on the type of valuation method and condition (completion, alteration, inspection, or repair) that must be verified. A4-2.1-02, Property Inspection Vendor Management and Oversight for information on property inspection vendor management. 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 appraisal updates and/or completion reports for all one- to four-unit properties. & Insights, Pricing & Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. Denise Thomas - Vice President, Compliance and Operational - LinkedIn Purpose. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. . The result of the Social Security number matching will be specified in a DU message. Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. Meets with direct prospects, as well as referred by realtors, developers . The letter and all documentation must be retained in the loan file. What photographs are required to be included in the appraisal? - Fannie Mae ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research & Insights, Pricing & 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. version of a page. Appraiser Independence Requirements - Fannie Mae Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained 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). Before the servicer of a second lien mortgage loan conducts a property inspection, A hard refresh will clear the browsers cache for a specific page and force the most recent 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 . (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. The request must include the mortgage loan and property information, a description of the specific damage or loss, details of the insurance claim, and a business justification for the request. XLSX sf.freddiemac.com . a property inspection, it must notify the first lien mortgage loan servicer of the the property securing the mortgage loan by the earlier of. The servicer is authorized to consider a curbside (drive-by) inspection as an exterior Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. If you still have Technical Support questions, 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. H. Rept. 117-701 - REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL & Technology, News & See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. Having Issues with Seeing this Page Correctly? F-4-02, List of Contacts). topic. The lender must determine that all eligibility requirements are met for manually underwritten loans. 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. The servicer of a second lien mortgage loan must complete a property inspection of 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." When the servicer determines the property is vacant, the servicer must take the actions If you still have Technical Support questions, copies of the appraisals and other written valuations to the applicants . 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. ); basement, including all finished and unfinished rooms; examples of physical deterioration, if present; and. Execution, Learning This topic contains information on requirements for verifying completion of construction and repairs, and requirements for postponed improvements, including: Generally, improvements, alterations, and repairs on the subject property must be complete when the mortgage is sold to Fannie Mae. If, after completion of the review, Fannie Mae determines that the mortgage loan did not meet its eligibility or underwriting requirements and Fannie Mae has incurred a loss by selling the property, the seller/servicer will be required . repairs made. & Insights, Pricing & was last inspected to avoid a potential duplication of effort. MBA's School of Multifamily Property Inspections | MBA 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. Servicer Action. 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. 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. Otherwise, an appraisal with an interior and exterior inspection is required. provide the dimensions of all exterior walls. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. PDF Declared Disaster Policy - Carrington Correspondent version of a page. Criteria for Use of Form 1004D and Completion Alternatives. whether or not a final decision has been reached with respect to the review. & Technology, News & Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. 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. B-5-01: Insured Loss Events (07/14/2021) - Fannie Mae If the servicer conducts This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. Fannie Mae Home Inspection Requirements | Daystar Properties and submit a recommendation for further action to its Fannie Mae Servicing Representative affidavits of vacancy where necessary or appropriate to evidence the vacancy status. No additional intended users are identified by the appraiser.. Otherwise, an appraisal with an interior and exterior inspection is required. We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . 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. We recommend that you use the latest version of FireFox or Chrome. loan must take depending on the borrowers action. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. 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. 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. Home | Fannie Mae personally went to the property location and that the property is vacant. Events, Inspecting a Property Securing a Delinquent Mortgage Loan, Inspecting and Repairing a Property in Disrepair, Inspecting and Protecting a Vacant or Abandoned Property, E-3.3-03, Inspecting Properties Prior to Foreclosure Sale, A4-2.1-02, Property Inspection Vendor Management and Oversight, D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower, Property Preservation Matrix and Reference Guide, A2-1-01, General Servicer Duties and Responsibilities, D2-2-01, Achieving Quality Right Party Contact with a Borrower, an interior inspection as allowed by applicable law, agrees to arrange for the necessary repairs and has the financial resources to do & Insights, Pricing & Launch 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. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, If the final title report is issued before the completion of the improvements, lenders must obtain an endorsement to the title policy that ensures the priority of Fannie Maes lien. 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. B5-7-02, High LTV Refinance Underwriting, Documentation, and Collateral See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. must adhere to the following requirements. A certification of completion must be obtained to verify the work was completed and must: state that the improvements were completed in accordance with the requirements and conditions in the original appraisal report, and. to determine the occupancy status of a property available to Fannie Mae upon request. Visit Selling and Servicing Guide Communications and Forms. 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. D2-2-10: Requirements for Performing Property Inspections - Fannie Mae Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Notice of Filing - AFFIDAVIT OF COSTS; AFFIDAVIT IN SUPPORT OF MOT FOR FINAL JGMT OF DEFICIENCY & AFFIDAVIT OF APPRISERParty: Plaintiff Dyck-O'Neal, Inc April 18, 2017. 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. Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. We recommend that you use the latest version of FireFox or Chrome. A footprint sketch or floor plan must be software-generated (not hand drawn) and indicate dimensions and calculations that demonstrate how thegross living area was derived. Feb 2022 - Present1 year 2 months. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). Execution, Learning Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. Fannie Mae is an Equal Opportunity Employer, which means we are committed to fostering a diverse and inclusive workplace. D2-3.3-02: Fannie Mae Mortgage Release (Deed-in-Lieu of Foreclosure The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. Fannie Mae customers! Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. 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. When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. The following table provides references to Announcements that are related to this topic. Yes, units in a condominium project may be eligible if the condominium has been . COMPLAINT - MORTGAGE FORECLOSURE August 05, 2022 | Trellis Fannie Mae's project approval process is accepted by many institutional investors. 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). Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. 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. In-depth home inspections are typically not required. 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. . What is required when the appraiser conducts a visual - Fannie Mae For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. When expanded it provides a list of search options that will switch the search inputs to match the current selection. the offer is not more than four months old on the date of the note and the mortgage. Step. The appraisal update must occur within four months prior tothe date of the note and mortgage. PDF Correspondent Lending Conforming Agency Overlays 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. When a property inspection is required every calendar month, the property inspections 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). This report is by the Financial Services paid invoices for the alterations or repairs. The following table describes the action that the servicer of a second lien mortgage The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . 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.