such as legal action, to have emergency repairs made. 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). 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. 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. We recommend that you use the latest version of FireFox or Chrome. & Technology, News & Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. 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 you still have Technical Support questions, A4-2.1-02, Property Inspection Vendor Management and Oversight for information on property inspection vendor management. Condo. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. 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 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). Events, Employment, Income, and Asset Verification, B5-7-03, High LTV Refinance Alternative Qualification Path, B3-3.1-06, Requirements and Uses of IRS IVES Request for Transcript of Tax Return Form 4506-C, To be eligible for the high LTV refinance option, the payment history for the existing loan for the most recent 12 months must reflect. mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. The inspection report must be retained in the loan file and made available to Fannie Mae upon request. version of a page. Conforming loans can't . 0 was last inspected to avoid a potential duplication of effort. & Technology, News & The exhibits in the following table must accompany the appraisal report. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Execution, Learning Photo Requirements Use only clear, focused, color photos. 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. See 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. 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. A map showing the location of the subject property and the comparables that the appraiser used. promptly upon completion Notify the property insurance carrier about the vacancy to ensure that appropriate (For disaster-impacted properties, see D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). Before the servicer of a second lien mortgage loan conducts a property inspection, Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . foreclosure sale, or in applicable foreclosure actions where there is no foreclosure reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. the final submission of the loan casefile to DU resulted in an offer, an appraisal is not obtained for the transaction, and. 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. If the first lien mortgage loan servicer does not intend to take any action to repair the property, the servicer must contact its Fannie Mae Servicing Representative (see F-4-02, List of Contacts). version of a page. Feb 2022 - Present1 year 2 months. 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 closing, remit the remaining balance of any insurance loss proceeds via CRS using remittance code 332. Visit Selling and Servicing Guide Communications and Forms. The cost of completing improvements must not represent more than 10% of the as completed appraised value of the property. The lender must note in the file why the original appraiser was not used. In doing so, we are providing this Lender Letter with additional guidance and relief. When none of the borrower Social Security numbers match, the loan casefile will not be underwritten as a high LTV refinance loan. & Insights, Pricing & By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. 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, Fannie Mae guidelines, eligible for the Guaranteed Loan Program? Events, Appraiser Certifications and Limiting Conditions, B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements, B4-1.3-05, Improvements Section of the Appraisal Report, 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. 5.3 (Typo . complete a property inspection every calendar month as long as the mortgage loan remains Once the servicer has confirmed the property is abandoned, the servicer must complete Notice of Filing - Original Note, Copy of Original Mortgage d, Assignment of Mortgage, Demand Letter , Loan Payment Hitory & Verified Statement as to Plaintiff's CostsParty: Plaintiff Federal Nat Mtg Assn ("FANNIE MAE") Freddie Mac. insurance coverage is being maintained. Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. & Insights, Pricing & determine the appropriate actions based on the status of the mortgage loan at the time of the loss event, as described below. the property securing the mortgage loan by the earlier of. . 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. feel free to email. When the servicer determines the property is vacant, the servicer must take the actions 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. It also helps to protect the lender's investment in the property. (see See. However, the servicer must complete more frequent property . If you still have Technical Support questions, must determine what action the first lien mortgage loan servicer intends to take. 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. it must contact the first lien mortgage loan servicer to determine when the property 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. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. This button displays the currently selected search type. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. 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. Access 1. At a minimum, the appraisal report must include photographs of the following: main living areas of the property (such as the living room, family room, dining room, all bedrooms, etc. Otherwise, an appraisal with an interior and exterior inspection is required. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Discuss with the borrower any plans for repairing the property. an MBS mortgage loan serviced under the special servicing option. 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. 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. The following table provides references to Announcements that are related to this topic. We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . The subject and all comparables must be appropriately identified. In-depth home inspections are typically not required. (For best result, pose your search like a question. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. School of Multifamily Property Inspections. 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). COVID-19 Safety Policy for On-Site Inspections Until further notice, all Inspections must follow Fannie Mae's COVID-19 Safety Policy rules. 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. Obtain complete details on the damage to the property and determine the needed repairs. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. Repairs to a property damaged as the result of a disaster (as defined by this Selling Guide) are not required prior to loan sale as long as the loan meets the applicable property insurance requirements. 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. Appraisal Update and/or Completion Report (Form 1004D). Fannie Mae's project approval process is accepted by many institutional investors. 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. Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. The table below provides references to recently issued Announcements that are related to this topic. The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. to maintain the property and take the action described in the following table depending information from other Fannie Mae published sources. Contact any other lienholders to determine if any action has been taken and their hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 365 0 obj <> endobj 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. See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. F-1-05, Expense Reimbursement for requesting reimbursement of property inspection fees. on the occupancy status. The lender must determine that all eligibility requirements are met for manually underwritten loans. Center, Apps The lender does not need to confirm the subject property is not currently listed for sale. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. feel free to email. If you still have Technical Support questions, 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. & Technology, News & information from other Fannie Mae published sources. 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 a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. devalued, denied, and disrespected: how home appraisal bias and discrimination are hurting homeowners and communities of color 117th congress (2021-2022) Minor conditions and deferred maintenance items include, but are not limited to, worn floor finishes or carpet, minor plumbing leaks, holes in window screens, missing handrails, or cracked window glass and are typically due to normal wear and tear. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . (For best result, pose your search like a question. Oct 2011 - Jan 20208 years 4 months. or the need for urgent repairs, the servicer must remind the borrower of their obligation The MarketWatch News Department was not involved in the creation of this content. All qualified applicants will receive consideration for employment without regard to race, religion, national origin, gender, gender identity, sexual orientation, personal appearance, protected veteran status, disability . (For best result, pose your search like a question. The servicer must obtain a signed copy of the inspection report that first reported (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). For manually underwritten loans, an appraisal with an interior and exterior inspection is required. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. The servicer must order a property inspection on or after the 90th day of delinquency Valuation Requirements. Servicer Action. 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. Complete the foreclosure sale or acceptance of the Mortgage Release. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. 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. See All documentation must be retained in the loan file. Visit Selling and Servicing Guide Communications and Forms. Form 1004 also may be used for two-unit properties, if each of the units is occupied by one of the co-borrowers as theirprincipal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. . Final Inspection as needed Owner of record should match (AOS, Title/HUD) . Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. 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 The servicer must follow the procedures in General Expense Reimbursement Requirements in However, the servicer must complete more