Criteria for Use of Form 1004D and Completion Alternatives. 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. The table below provides references to recently issued Announcements that are related to this topic. The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. examples of recent updates, such as restoration, remodeling, and renovation, if present. Note: Appropriate arrangements should be made for the borrower to repay the advance. A2-1-01, General Servicer Duties and Responsibilities and the Property Preservation Matrix and Reference Guide for additional information. . 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 is authorized to make the disbursement in one payment. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. 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. copies of the appraisals and other written valuations to the applicants . Obtain the proper lien releases, if applicable. Otherwise, an appraisal with an interior and exterior inspection is required. Complete the foreclosure sale or acceptance of the Mortgage Release. personally went to the property location and that the property is vacant. . the possibility that the property may be vacant or abandoned. Fannie Mae released its first economic commentary of 2023 earlier this month. . hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 on the borrowers action. . submit the appraisal selected by the lender through the UCDP prior to delivery. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure 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. The value of sweat equity and Do It Yourself improvements are not reimbursable. We recommend that you use the latest version of FireFox or Chrome. According to the 2021 FHA appraisal guidelines, all properties being purchased with an FHA-insured mortgage loan must be appraised by a licensed, HUD-approved home appraiser. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. 90 or more days delinquent without regard to whether QRPC, as described in endstream endobj startxref However, the servicer must complete more frequent property . 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. Center, Apps For mortgage loans that are current or less than 31 days delinquent at the time of the loss event, the servicer is authorized to use borrower-submitted photos and/or video, or conduct servicer-directed video calls with the borrower to document the progress or completion of repairs of the property, provided that the conditions listed in the following table are met. 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. 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 Mae's lien. endstream endobj 366 0 obj <. 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. Otherwise, an appraisal with an interior and exterior inspection is required. 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. For manually underwritten loans, an appraisal with an interior and exterior inspection is required. Visit Selling and Servicing Guide Communications and Forms. applicable foreclosure actions where there is no foreclosure sale and title is transferred The servicer must order a property inspection on or after the 90th day of delinquency If a property inspection reveals an insurable loss event and the proof of loss claim is not filed, is denied, or is curtailed due to the servicers failure to file a timely claim, the servicer must make Fannie Mae whole for any losses relating to the property damage, expenses, or fees Fannie Mae incurs. Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D. Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. See Overview of General Servicer Duties and Responsibilities in Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained & Technology, News & Conventional loan home requirements are pretty lenient. (For best result, pose your search like a question. is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, the property, the servicer must contact its Fannie Mae Servicing Representative (see 1. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research 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. Having Issues with Seeing this Page Correctly? & Technology, News & It is the lender's responsibility to find an alternative, qualified inspector when the Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. & Insights, Pricing & At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. provide the dimensions of all exterior walls. A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). listed in the following table. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. Center, Apps Execution, Learning Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. Visit Selling and Servicing Guide Communications and Forms. 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 appraiser indicates on the Form 1004D that the property value has declined, then the lender must obtain a new appraisal for the property. If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. Advance the funds to pay expenses. if there are legal constraints due to compliance with applicable law including active The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. Each Fannie Mae appraisal report form includes an appraisers certification (and, if applicable, a supervisory appraisers certification) and a statement of assumptions and limiting conditions. version of a page. . However, the servicer must complete more frequent property . Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, 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 . 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. & Insights, Pricing & (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. The sketch must include the subject's exterior footprint with dimensions. noted in this Servicing Guide. must determine what action the first lien mortgage loan servicer intends to take. Valuation Requirements. so, is willing to make the repairs, but is unable to do so, is authorized to ask Fannie Mae to advance the necessary funds by requesting expense 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. If the loan is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z, the loan must comply with the Alternative Qualification Path requirements. and submit a recommendation for further action to its Fannie Mae Servicing Representative do not affect the ability to obtain an occupancy permit. an interior inspection every calendar month until the foreclosure sale date, or in Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research 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 . 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). 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 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. provide. (For best result, pose your search like a question. The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. No additional intended users are identified by the appraiser.. 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