The servicer must order a property inspection on or after the 90th day of delinquency applicable law allows for the accumulated interest to be applied to the UPB. Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). If the servicer conducts The value of sweat equity and Do It Yourself improvements are not reimbursable. 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. & Technology, News & The servicer must obtain a signed copy of the inspection report that first reported Having Issues with Seeing this Page Correctly? Note: See Establishing Written Policies or Procedures in A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements and A4-1-02, Establishing Custodial Bank Accounts for additional details, including requirements for addressing unapplied funds held in the T&I custodial account and for reporting the status of funds in the custodial account to Fannie Mae. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). version of a page. If you have additional questions, Fannie Mae customers can visit Ask Poli to get The table below provides references to recently issued Announcements that are related to this topic. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Servicer Action. Lenders must obtain evidence of completion and Fannie Mae allows for a variety of methods depending on the type of valuation method and condition (completion, alteration, or repair) that must be confirmed. & Insights, Pricing & Once the servicer has confirmed the property is abandoned, the servicer must complete This policy applies regardless of whether the property was appraised as proposed or existing construction. information from other Fannie Mae published sources. represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. 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. 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. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. Criteria for Use of Form 1004D and Completion Alternatives. if there is potential danger to the inspector. Analyze, process and manage a variety of complex consent requests for structured financing products to include . Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. 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. such as legal action, to have emergency repairs made. Fannie Mae customers! The lender must determine if repairs are required as a result of the inspection, verification per above requirements. the offer is not more than four months old on the date of the note and the mortgage. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). 30UL Hna`@,v?,A
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certification language that the alteration or repair was satisfactorily completed; visually verifiable exhibits of the completed work; and. The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. 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. 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. 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). See 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. noted in this Servicing Guide. When there is a Social Security number match, DU will underwrite the loan casefile as a high LTV refinance loan. 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 . Advance the funds to pay expenses. Main Structure . Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. Center, Apps Requirements for HomeStyle Energy Improvements on Existing Construction. This button displays the currently selected search type. 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. F-4-02, List of Contacts). This may include but is not limited to foundation settlement, water seepage, active roof leaks, worn roof shingles, inadequate electrical service or plumbing fixtures, etc. . The servicer must pay the accumulated interest to the borrower once the repairs to the property have been completed, unless, the borrower requests an earlier disbursement of the interest, or. Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. Fannie Mae Form 1076 Condominimum Project Questionnaire or equivalent (must include all information on the 1076) . . (if known). The lender must make this determination. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. See Overview of General Servicer Duties and Responsibilities in For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. 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. 3. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. ordinance or based on property condition). it must contact the first lien mortgage loan servicer to determine when the property . The . The inspection report must be retained in the loan file and made available to Fannie Mae upon request. 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). foreclosure sale, or in applicable foreclosure actions where there is no foreclosure 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. When none of the borrower Social Security numbers match, the loan casefile will not be underwritten as a high LTV refinance loan. 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. 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). 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. However, the servicer must not complete a property inspection every calendar month Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Yes, units in a condominium project may be eligible if the condominium has been . information from other Fannie Mae published sources. The 1004d form by Fannie Mae and 442 form by Freddie Mac is used to complete an appraisal update, final inspection, or in some circumstances, both for all one- to four-unit properties. Condo. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. The PCA provides: an assessment of the Property's current physical condition; The servicer must inspect a property as soon as possible after it becomes aware of & Insights, Pricing & & Technology, News & affidavits of vacancy where necessary or appropriate to evidence the vacancy status. The completion escrow may not adversely affect the mortgage insurance or title insurance. Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. 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. Make immediate arrangements to protect the property from vandalism and the elements In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. If you still have Technical Support questions, 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. 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. 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. Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. Center, Apps to maintain the property and take the action described in the following table depending When updates are completed by substitute appraisers, the substitute appraiser must review the original appraisal report and express an opinion about whether the original appraisers opinion of market value was reasonable on the date of the original appraisal report. A2-1-01, General Servicer Duties and Responsibilities and the Property Preservation Matrix and Reference Guide for additional information. F-4-02, List of Contacts). Execution, Learning Fannie Mae's project approval process is accepted by many institutional investors. To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders. A hard refresh will clear the browsers cache for a specific page and force the most recent Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Center, Apps review the inspection report to verify the property condition. Otherwise, Form 1007 is not required. 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. Note: The servicer and/or the insurance company may not have reason to believe that a supplemental claim will be filed for additional damages at the time the initial loss proceeds are paid by the insurer; therefore, the servicer must disburse any insurance loss proceeds based on the requirements in this Guide without regard to whether supplemental loss proceeds will be received. Fannie Mae customers! The subject and all comparables must be appropriately identified. 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. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. 1. is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). 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. Conventional loan home requirements are pretty lenient. final inspection? See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value.