Does AIR apply to non-appraisal valuation methods (i.e., automated valuation models [AVMs], broker price . & Technology, News & The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. 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. The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. & Insights, Pricing & Fannie Mae released its first economic commentary of 2023 earlier this month. & Insights, Pricing & 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. repairs made. Apr 2020 - Present2 years 10 months. final inspection? 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. 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. 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). 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. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research Allow the servicer to determine the repairs are from the location of the property. A hard refresh will clear the browsers cache for a specific page and force the most recent (For disaster-impacted properties, see 0 applicable foreclosure actions where there is no foreclosure sale and title is transferred be accompanied by photographs of the completed improvements. The PCA provides: an assessment of the Property's current physical condition; Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. no delinquencies in the most recent 6 months, and. Otherwise, an appraisal with an interior and exterior inspection is required. ); examples of recent updates, such as restoration, remodeling, and renovation, if present. version of a page. The completion escrow may not adversely affect the mortgage insurance or title insurance. When the effective date of the original appraisal report is more than 12 months from the date of the note and mortgage (with or without an appraisal update) a new appraisal report is required. 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). paid invoices for the alterations or repairs. DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. feel free to email, the property is borrower/tenant occupied, and. such as legal action, to have emergency repairs made. Appraisal Updates & Completion Form. Center, Apps The borrower and the lender/client must be the same on the original and subsequent transaction. We recommend that you use the latest version of FireFox or Chrome. The exhibits in the following table must accompany the appraisal report. (For best result, pose your search like a question. The value of sweat equity and Do It Yourself improvements are not reimbursable. Having Issues with Seeing this Page Correctly? do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. when the mortgage loan is 90 or more days delinquent if. Visit Selling and Servicing Guide Communications and Forms. devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. Authenticate when taken and that such photos or video were not altered in any way. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. ); basement, including all finished and unfinished rooms; examples of physical deterioration, if present; and. (see We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . Fannie Mae customers! Complete the foreclosure sale or acceptance of the Mortgage Release. See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. The floor plan must include the following: For a unit in an apartment-style condo or co-op project, the sketch of the unit must indicate interior perimeter unit dimensions rather than exterior building dimensions (dimensions and estimates for gross living area shown in the condo documents are acceptable). The servicer must release the insurance loss proceeds received from the insurance carrier based on the status of the mortgage loan at the time of the loss event. School of Multifamily Property Inspections. Ensure a full and accurate review of income, assets, credit reports, title, hazard insurance, notes, appraisals for Fannie Mae (DU), Freddie Mac (LP) and Non-QM loan programs for W2 wage-earners . 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. Originator Organization: Strategic Funding, LLC, NMLSR ID 1409576 FLORIDA--Single Family-Fannie Mae/Freddie Mac UNIFORM INSTRUMENT - MERS ic @Roomns Form 3010 tt amily~Fannie Mae/Freddie Mac Page 15 of 15 Wonneoonsaionon 2 WeerensrrennINSTRUMENT# 2017011330 OR BOOK 4896/PAGE 1599 PAGE 16 of 16 Exhibit A Lot 21, Block 3, Pine Island Shores . This is a dual- purpose form. See B4-1.3-06, Property Condition and Quality of Construction of the Improvements, for information concerning property condition and quality of construction ratings. 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. Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. 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. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure No additional intended users are identified by the appraiser.. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. The sketch must include the subject's exterior footprint with dimensions. 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. Freddie Mac. The following table outlines the type of inspection the servicer must perform depending View full Fact Sheet. Otherwise, an appraisal with an interior and exterior inspection is required. The borrower/builder attestation letter must include (at a minimum) the following items: If a letter signed by both parties is not obtainable, then a Form 1004D completed by the appraiser is required. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Access 1. Fannie Mae customers! Proper inspection training is a key component . or the need for urgent repairs, the servicer must remind the borrower of their obligation 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. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. 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. We recommend that you use the latest version of FireFox or Chrome. 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. If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. 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. 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. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. If you still have Technical Support questions, Fannie Mae's rules for conventional . For traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. 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. Verification of completion of construction is required (in accordance with the requirements above) before sale of the loan to Fannie Mae, unless the lender complies with the postponed improvements policies described below. by court order, the date the courts order is entered on the docket. personally went to the property location and that the property is vacant. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. 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 limited cash-out refinance loan casefile that meets the minimum LTV requirement for a high LTV refinance loan is underwritten in DU, internal data will be used to determine if Fannie Mae owns the loan on the property, and if that loan is eligible to be refinanced using the high LTV refinance option. Center, Apps Clear, descriptive color photographs showing the front, back, and a street scene of the subject property and the front of each comparable. 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. to determine the occupancy status of a property available to Fannie Mae upon request. In doing so, we are providing this Lender Letter with additional guidance and relief. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. Once the property has been fixed, a final inspection will take place to verify that the work has been completed. the possibility that the property may be vacant or abandoned. Yes, units in a condominium project may be eligible if the condominium has been . See MBA has established property inspection "best practices" which require adequate training and experience for all individuals (primarily underwriters and servicers) inspecting multifamily real estate financed by Fannie Mae and Freddie Mac. This topic contains information about underwriting requirements for the high LTV refinance option, including: High LTV refinance loans may be underwritten using DU or manually, with the exception of loans subject to the Alternative Qualification Path (which must be manually underwritten). hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 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. An elected board of directors is responsible for operations and management . 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. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. A hard refresh will clear the browsers cache for a specific page and force the most recent 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. information from other Fannie Mae published sources. Otherwise, an appraisal with an interior and exterior inspection is required. When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. The subject and all comparables must be appropriately identified. See Overview of General Servicer Duties and Responsibilities in property inspection reports, . Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. 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. Loan-level price adjustments: . The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. version of a page. provide. The age of the appraisal report mustbe lessthan 12 months from the notedate of the subsequent transaction. Yes. 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. endstream endobj 366 0 obj <. 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. The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. the execution of a Mortgage Release, or the mortgage loan becomes current unless otherwise 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. Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. House report on REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES OF THE UNITED STATES HOUSE OF REPRESENTATIVES FOR THE ONE HUNDRED AND SEVENTEENTH CONGRESS. Once a certificate of completion 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. 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 appraiser is responsible for noting in his/her report any adverse conditions (such as, but not limited to, needed repairs; deterioration; or the presence of hazardous wastes, toxic substances, or . Note: Required for case numbers . (For best result, pose your search like a question. Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. The MarketWatch News Department was not involved in the creation of this content. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. Launch Delivery method and timing . This button displays the currently selected search type. Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. The lender must make this determination. Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. The appraiser may not make changes or deletions to the existing certifications; however, the appraiser may make additional certifications that can be included on a separate page or form. it must contact the first lien mortgage loan servicer to determine when the property Note: The servicer must not issue any insurance loss proceeds to pay fees to its property recovery firm or any other servicer expenses, and Fannie Mae will not reimburse fees to any servicer's property recovery firm or for any other related servicer expense. they must conform to Fannie Mae's ARM requirements (see Resources). Q12. 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. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). 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. In This Section. is authorized to release the insurance loss proceeds in one payment. & Insights, Pricing & loan must take depending on the borrowers action. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. . Having Issues with Seeing this Page Correctly? 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 . Finance is the study and discipline of money, currency and capital assets.It is related to, but not synonymous with economics, which is the study of production, distribution, and consumption of money, assets, goods and services (the discipline of financial economics bridges the two). 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. for any exception in the mortgage loan file. 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. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . (For best result, pose your search like a question. 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. All levels of the dwelling unit(s) must be part of the exhibit. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. 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. Visit Selling and Servicing Guide Communications and Forms. The servicer must order a property inspection on or after the 90th day of delinquency information from other Fannie Mae published sources. noted in this Servicing Guide. 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. information from other Fannie Mae published sources. 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. examples of recent updates, such as restoration, remodeling, and renovation, if present. Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. Atlanta, Georgia. is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? 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. Note: Appropriate arrangements should be made for the borrower to repay the advance. agrees to arrange for the necessary repairs. It is the lender's responsibility to find an alternative, qualified inspector when the Execution, Learning Servicer Action. 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. affidavits of vacancy where necessary or appropriate to evidence the vacancy status. %%EOF the property securing the mortgage loan by the earlier of. bankruptcy, or. Center, Apps A2-1-01, General Servicer Duties and Responsibilities and the Property Preservation Matrix and Reference Guide for additional information. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. When the property securing the mortgage is new or proposed construction, the appraisal must be based on either plans and specifications,an existing model home, or other information sufficient to identify the quality and character to accurately report the interior features of the proposed improvements. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. version of a page. 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. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. 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. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. Uniform Residential Appraisal Report ( Form 1004 ) For traditional appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) based on an interior and exterior on-site physical inspection of the property by the appraiser. Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. to maintain the property and take the action described in the following table depending The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. 90 or more days delinquent without regard to whether QRPC, as described in The following table provides a list of account requirements. must determine what action the first lien mortgage loan servicer intends to take. The servicer must follow the procedures in General Expense Reimbursement Requirements in Condo. In a 2014 final rule, FinCEN extended similar requirements to the housing-related Government Sponsored Enterprises ("GSEs")Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. Conforming loans can't . 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.