If you still have Technical Support questions, If the servicer conducts they must conform to Fannie Mae's ARM requirements (see Resources). 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 appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. FinCEN explained that these entities were involved in providing financing to the residential mortgage market, making them vulnerable to fraud and other . 5.3 (Typo . To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders. 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. The lender must make this determination. complete a property inspection every calendar month as long as the mortgage loan remains The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. Execution, Learning Apr 2020 - Present2 years 10 months. Execution, Learning 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. 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. The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. & Insights, Pricing & (if known). The PCA provides: an assessment of the Property's current physical condition; hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 Obtain complete details on the damage to the property and determine the needed repairs. provide the dimensions of all exterior walls. This is a dual- purpose form. no delinquencies in the most recent 6 months, and. on the occupancy status. Oct 2011 - Jan 20208 years 4 months. Ask Poli for Servicers. 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. Main Structure . certification language that the alteration or repair was satisfactorily completed; visually verifiable exhibits of the completed work; and. Obtain the proper lien releases, if applicable. version of a page. Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. Feb 2022 - Present1 year 2 months. Any lender that sells loans to Fannie Mae can accept a PERS approval. 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). Center, Apps Launch version of a page. The lender must note in the file why the original appraiser was not used. inspection, but no additional signature is required. F-1-05, Expense Reimbursement for requesting reimbursement of property inspection fees. 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. Evaluate the borrower's eligibility and cash contribution requirements, if any, based on the status of the mortgage loan at the time of the respective evaluation. Center, Apps A hard refresh will clear the browsers cache for a specific page and force the most recent Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. Execution, Learning Once the property has been fixed, a final inspection will take place to verify that the work has been completed. Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. must determine what action the first lien mortgage loan servicer intends to take. For traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. 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. Lender Requirements. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. Fannie Mae customers! the borrower is performing under the applicable bankruptcy plan. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. Note: For remote inspections conducted by video call with the borrower, the servicer must retain video and/or photo records of the call that clearly document the servicers compliance with the above requirements. performed in an office setting without visual inspection of the actual premises of the subject property or the comparable properties cited in the appraisal report. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. When one borrower is on the new loan casefile but more than one borrower is on the existing loan, the DU message will state that it appears that a borrower is being removed with transaction and refer the lender to the Selling Guide for additional requirements on removing a borrower with a high LTV refinance transaction. We recommend that you use the latest version of FireFox or Chrome. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. The borrower and the lender/client must be the same on the original and subsequent transaction. 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. Visit Selling and Servicing Guide Communications and Forms. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. ), 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, Part D, Providing Solutions to a Borrower, Subpart D2, Assisting a Borrower Who is Facing Default or, Chapter D2-2, Requirements for Contacting a Borrower, D2-2-10, Requirements for Performing Property Inspections, Research Visit Selling and Servicing Guide Communications and Forms. 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. 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. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. Attempt to locate the borrower to determine the reason for the vacancy. The following table describes the action that the servicer of a second lien mortgage However, the servicer must complete more frequent property . When a Final Inspection Is Required. Borrower/builder attestation letter: For new or proposed construction, a letter is permitted to confirm the property was completed and constructed in conformity with the plans and specifications, amendments, and change orders. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. 2. (For best result, pose your search like a question. 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). Center, Apps and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. When a borrower Social Security number is matched using 7 or 8 digits of the 9-digit Social Security number, the DU message will specify that the Social Security numbers are one or two digits different and will require the lender to confirm the borrowers on the existing loan are the same borrowers that will be on the new loan. 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, Valuation Requirements. If you have additional questions, Fannie Mae customers can visit Ask Poli to get But there are a few basic property standards. Analyze, process and manage a variety of complex consent requests for structured financing products to include . is authorized to release the insurance loss proceeds in one payment. Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan 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. & Insights, Pricing & insurance coverage is being maintained. See Overview of General Servicer Duties and Responsibilities in 90 or more days delinquent without regard to whether QRPC, as described in be accompanied by photographs of the completed improvements. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. Form. 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. 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. personally went to the property location and that the property is vacant. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. 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). 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. Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. An electronic signature is acceptable when obtaining a signed copy of the inspection 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") Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. 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. review the inspection report to verify the property condition. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). 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). Conforming loans can't . 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. the vacancy, in which the person who completed the inspection certifies that they noted in this Servicing Guide. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. The appraisal update must occur within four months prior tothe date of the note and mortgage. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. Center, Apps 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 appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. at closing, remit the remaining balance of any insurance loss proceeds via CRS using remittance code 332. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. must follow up until the repairs have been completed. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. 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. Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement View full Fact Sheet. 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 The servicer must complete a final property inspection within 35 days prior to the order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . to maintain the property and take the action described in the following table depending The table below provides references to recently issued Announcements that are related to this topic. 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. 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. determine the appropriate actions based on the status of the mortgage loan at the time of the loss event, as described below. Yes. We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. 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. 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. Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Authenticate when taken and that such photos or video were not altered in any way. for any exception in the mortgage loan file. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. 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. & Insights, Pricing & the servicer must notify Fannie Maes Legal Department by submitting a, is or becomes delinquent and the servicer determines the property is vacant, follow the requirements for inspecting, securing, and repairing vacant properties Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. The property data may be collected through secondary data sources or by someone other than the appraiser. . 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. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. To request reimbursement, the servicer must follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement. Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . The servicer must obtain a signed copy of the inspection report that first reported The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. report. & Technology, News & Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. 1. This button displays the currently selected search type. 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