ordinance or based on property condition). 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. Does AIR apply to non-appraisal valuation methods (i.e., automated valuation models [AVMs], broker price . See. order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . ); examples of recent updates, such as restoration, remodeling, and renovation, if present. The Appraisal Update and/or Completion Report (Form 1004D) is used to update an appraisal or provide confirmation that the requirements or conditions in an appraisal report have been met (such as completion of construction or repairs). on the borrowers action. . Obtain complete details on the damage to the property and determine the needed repairs. 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. affidavits of vacancy where necessary or appropriate to evidence the vacancy status. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. The borrower and the lender/client must be the same on the original and subsequent transaction. must follow up until the repairs have been completed. In-depth home inspections are typically not required. 1. 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. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. & Technology, News & 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. topic. sale and title is transferred by court order, the estimated court order docket date information from other Fannie Mae published sources. must determine what action the first lien mortgage loan servicer intends to take. The following table outlines the type of inspection the servicer must perform depending Inspector Information A. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . (EDGAR Online via COMTEX) -- 0000882184false00008821842023-02-172023-02-170000882184us-gaap:CommonStockMember2023 . Atlanta, Georgia. We recommend that you use the latest version of FireFox or Chrome. 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. 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). Main Structure . When the servicer learns of any condition detrimental to the value of the property Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. The servicer is authorized to consider a curbside (drive-by) inspection as an exterior inspection, but no additional signature is required. 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 expanded it provides a list of search options that will switch the search inputs to match the current selection. Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained How to do a hard refresh in Internet Explorer. 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. & Technology, News & The servicer must follow the procedures in General Expense Reimbursement Requirements in Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. Fannie Mae And Freddie Mac. Meets with direct prospects, as well as referred by realtors, developers . the date that it initiates foreclosure proceedings, or. The following table provides a list of account requirements. Center, Apps a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the 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.". 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 version of a page. 2. agrees to arrange for the necessary repairs. The sketch must include the subject's exterior footprint with dimensions. Authenticate when taken and that such photos or video were not altered in any way. The table below provides references to recently issued Announcements that are related to this topic. 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. If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. 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. If the mortgage loan progresses to foreclosure sale, the servicer must follow the requirements in E-3.3-05, Issuing Bidding Instructions for determining the foreclosure sale bid amount. 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. See B4-1.3-06, Property Condition and Quality of Construction of the Improvements, for information concerning property condition and quality of construction ratings. (if known). Once the servicer has confirmed the property is abandoned, the servicer must complete Ask Poli for Servicers. Execution, Learning See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. Contact any other lienholders to determine if any action has been taken and their 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). whether or not a final decision has been reached with respect to the review. The lender must make this determination. The inspection report must be retained in the loan file and made available to Fannie Mae upon request. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. 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. A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. review the inspection report to verify the property condition. However, the servicer must complete more frequent property . Having Issues with Seeing this Page Correctly? Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. summarize its attempts to locate the borrower and its discussions with any other lienholders feel free to email. If you still have Technical Support questions, 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, The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. 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. If you still have Technical Support questions, Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. 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. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. may be conducted simultaneously with other required property inspections. 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. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. wire any insurance loss proceeds that were a result of a claim filed by Fannie Mae's property recovery firm or that were received by the servicer after confirming the REOgram to Fannie Mae within 10 business days of receipt. The property data may be collected through secondary data sources or by someone other than the appraiser. Appraisal Updates & Completion 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. 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. 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. 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, (For best result, pose your search like a question. 3. Center, Apps If the interior layout of the dwelling unit(s) is atypical or functionally obsolete, thus limiting the market appeal for the property in comparison to competitive properties in the neighborhood, Fannie Mae also requires a floor plan. See Overview of General Servicer Duties and Responsibilities in Fannie Mae will accept the following additional notice or statement when appraisers believe the lender/client is the only intended user: The intended user of this appraisal report is the lender/client. When a Final Inspection Is Required. See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. endstream endobj startxref reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such the possibility that the property may be vacant or abandoned. 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. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). version of a page. final inspection? to determine the occupancy status of a property available to Fannie Mae upon request. 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. 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. to the extent that local laws allow such action. Step. & Insights, Pricing & 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. The table below provides references to recently issued Announcements that are related to this topic. General Information 2. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. 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. Feb 2022 - Present1 year 2 months. 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. All levels of the dwelling unit(s) must be part of the exhibit. or the need for urgent repairs, the servicer must remind the borrower of their obligation No additional intended users are identified by the appraiser.. an interior inspection every calendar month until the foreclosure sale date, or in Loan-level price adjustments: . 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. The exhibits in the following table must accompany the appraisal report. 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. Visit Selling and Servicing Guide Communications and Forms. Condo. issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . The completion escrow may not adversely affect the mortgage insurance or title insurance. Advance the funds to pay expenses. Any lender that sells loans to Fannie Mae can accept a PERS approval. Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. delays, the servicer must document efforts to conduct timely inspection and the reason School of Multifamily Property Inspections. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research When there is a Social Security number match, DU will underwrite the loan casefile as a high LTV refinance loan. Discuss with the borrower any plans for repairing the property. 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. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. If you have additional questions, Fannie Mae customers can visit Ask Poli to get & Insights, Pricing & Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. 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. Execution, Learning