(These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). The following table provides a list of account requirements. Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. Any lender that sells loans to Fannie Mae can accept a PERS approval. Advance the funds to pay expenses. feel free to email, the property is borrower/tenant occupied, and. version of a page. However, the servicer must not complete a property inspection every calendar month The following table provides references to Announcements that are related to this topic. Valuation Requirements. Loansmay be delivered before postponed items are complete; however, the postponed improvements must be completed within 180 days of the date of thenote. Lenders must establish a completion escrow for the postponed energy-related improvements by withholding funds equal to 120% of the estimated cost for completing the improvements. 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. For appraisals of one-unit properties and units in PUDs (including those that have an illegal second unit or accessory dwelling unit) that are based on interior and exterior property data collection. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . Access 1. Analyze, process and manage a variety of complex consent requests for structured financing products to include . and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. Obtain the proper lien releases, if applicable. all delinquent mortgage loans and continue inspecting every calendar month as long (The lender may obtain this form for the purpose of reporting gross monthly rent at delivery. the possibility that the property may be vacant or abandoned. Fannie Mae customers! See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. %%EOF The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. & Insights, Pricing & There are no maximum DTI ratio requirements except for loans underwritten under the Alternative Qualification Path. The table below provides references to recently issued Announcements that are related to this topic. Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D. Valuation Requirements. 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. Visit Selling and Servicing Guide Communications and Forms. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. 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 . it must contact the first lien mortgage loan servicer to determine when the property Submit a request for expense reimbursement. School of Multifamily Property Inspections. Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. . 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). The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. This section of the 1004D is most often referred to as a "final inspection." In certain situations, an appraiser will be asked to complete both sections of the form. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . 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. Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. the borrower is performing under the applicable bankruptcy plan. Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. Conventional loan home requirements are pretty lenient. The following table provides references to Announcements that are related to this summarize its attempts to locate the borrower and its discussions with any other lienholders The MarketWatch News Department was not involved in the creation of this content. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. 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 . See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. 5.3 (Typo . 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. See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. Although the scope of work for the appraisal or the extent of the appraisal process is guided by Fannie Maes appraisal report forms, the forms do not limit or control the appraisal process. A floor plan is required for certain appraisal reports. If a property previously reported The completion escrow may not adversely affect the mortgage insurance or title insurance. Disburse the insurance loss proceeds in accordance with this, Deposit any funds not disbursed into an interest-bearing account (see. 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. determine the appropriate actions based on the status of the mortgage loan at the time of the loss event, as described below. All levels of the dwelling unit(s) must be part of the exhibit. COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. When a Final Inspection Is Required. Note: Required for case numbers . inspection, but no additional signature is required. It is the lender's responsibility to find an alternative, qualified inspector when the Appraisal reports must reflect adverse conditions that were apparent during the inspection or discovered while performing research, such as, but not limited to, needed repairs, deterioration, or the . 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. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. Appraisal and Property Requirements 4 Appraisal (HB -1-3555, Chapter 12) 4 . 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. Launch issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . frequent property inspections when necessary (for example, when required by local The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. 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. Once a Conditional or Final Project Approval is completed through the PERS process, all projects are listed in Condo Project Manager (CPM). Apr 2020 - Present2 years 10 months. The subject and all comparables must be appropriately identified. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. Follow 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. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure Fannie Mae ("Fannie Mae"; the Property Owner, Property Manager, Lender, Servicer, and Fannie Mae are each referred to in these Instructions as a "User"). D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. Execution, Learning Fannie Mae customers! Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . The following table provides a list of the servicers responsibilities when there is an insurable loss on a property securing a mortgage loan and the property can be legally rebuilt. When a successful submission to UCDP is received by only one Agency, then follow the guidance below: o When using DU, a successful UCDP document file status is required from Fannie Mae. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. Fannie Mae will allow the use of an origination appraisal for a subsequent transaction if the following requirements are met: The subsequent transaction may only be a limited cash-out refinance. 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. inspection only in the following circumstances: The servicer must maintain and make any checklists or other documentation relied upon If the servicer conducts To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders. 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. delays, the servicer must document efforts to conduct timely inspection and the reason We recommend that you use the latest version of FireFox or Chrome. 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. If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. Center, Apps & Insights, Pricing & Otherwise, an appraisal with an interior and exterior inspection is required. F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. For manually underwritten loans, an appraisal with an interior and exterior inspection is required. The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. paid invoices for the alterations or repairs. 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. feel free to email. Fannie Mae's 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 . However, if the contractor 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. (For best result, pose your search like a question. Center, Apps they must conform to Fannie Mae's ARM requirements (see Resources). %PDF-1.6 % A hard refresh will clear the browsers cache for a specific page and force the most recent DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. The servicer is authorized to request reimbursement for insured loss repair inspection costs incurred on current and delinquent mortgage loans when required to disburse additional funds or complete a final inspection of repairs. Feb 2022 - Present1 year 2 months. (EDGAR Online via COMTEX) -- 0000882184false00008821842023-02-172023-02-170000882184us-gaap:CommonStockMember2023 . Visit Selling and Servicing Guide Communications and Forms. E-3.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information. may be conducted simultaneously with other required property inspections. endstream endobj 366 0 obj <. This topic contains information about the following: When an appraisal is obtained, the property must be appraised within the 12 months prior to the date of the note and mortgage. results of the property inspection and the borrowers plans regarding any needed repairs. The Rule requires that creditors . We recommend that you use the latest version of FireFox or Chrome. The table below describes requirements related to properties that are new or proposed construction that are not complete when the loan is sold to Fannie Mae. Freddie Mac. The table below provides references to recently issued Announcements that are related to this topic. 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. on the occupancy status. View full Fact Sheet. Obtain complete details on the damage to the property and determine the needed repairs. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. final inspection? Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. The loan must comply in all respects with Regulation Z requirements for such loans, including the underwriting and consumer protection requirements. and Property Preservation Expenses in The lender must obtain one of the following for the new loan: a verbal verification of employment for employment or self-employment income for at least one borrower, documentation of a non-employment income source, or. A complete view must be used (that is, color photos of . do not affect the ability to obtain an occupancy permit. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. 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. information from other Fannie Mae published sources. use any insurance loss proceeds to reduce the outstanding mortgage loan debt. 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. An elected board of directors is responsible for operations and management . Meets with direct prospects, as well as referred by realtors, developers . 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 . becomes vacant. 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. or the need for urgent repairs, the servicer must remind the borrower of their obligation For non-routine litigation matters, F-1-05, Expense Reimbursement for requesting reimbursement of property inspection fees. Photo Requirements Use only clear, focused, color photos. The age of the appraisal report mustbe lessthan 12 months from the notedate of the subsequent transaction. If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. Proper inspection training is a key component . If you still have Technical Support questions, By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. to the extent that local laws allow such action. 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. 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). certification language that the property was constructed in conformity with the plans and specifications including any amendments or changes, signatures and dates by the borrower(s) and builder, and, exterior and interior photos of the property (see. 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). The Fannie Mae "temporary" requirements apply to all condominiums and cooperatives with five or more attached units and went into effect for "whole loans purchased on or after January 1, 2022. A hard refresh will clear the browsers cache for a specific page and force the most recent Execution, Learning A hard refresh will clear the browsers cache for a specific page and force the most recent 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. Q12. See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. . No additional intended users are identified by the appraiser.. provide the dimensions of all exterior walls. The servicer must inspect a property as soon as possible after it becomes aware of Inspector Information A. (For disaster-impacted properties, see 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. At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included.