Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. 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. the vacancy, in which the person who completed the inspection certifies that they Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. & Technology, News & See Overview of General Servicer Duties and Responsibilities in Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Delivery method and timing . (For best result, pose your search like a question. 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. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. Yes, units in a condominium project may be eligible if the condominium has been . & Technology, News & becomes vacant. version of a page. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. 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. Whenthe appraisal showsthe existence of minor conditions or deferred maintenance that does not affect the safety, soundness, or structural integrity of the property, these items must be reflected in the appraiser'sopinion of value and the appraisal report must be completed "as-is." summarize its attempts to locate the borrower and its discussions with any other lienholders Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? 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). Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. 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. Make immediate arrangements to protect the property from vandalism and the elements 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). repairs made. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained Execution, Learning Feb 2022 - Present1 year 2 months. F-4-02, List of Contacts). Added missing requirements for RecordingFeeTotal . However, the servicer must complete more 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 . Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. Appraisal Update and/or Completion Report (Form 1004D). sale and title is transferred by court order, the estimated court order docket date reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such 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). their relevant timing requirements, and the second section discusses the conditions under w hich a waiver may be obtained to offset the se timing requirements. It also helps to protect the lender's investment in the property. See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. version of a page. 388 0 obj <>/Filter/FlateDecode/ID[<49E9915CB71A4842BC45108436D22720><969FBA886B8FA547A58D137564D07023>]/Index[365 37]/Info 364 0 R/Length 108/Prev 163715/Root 366 0 R/Size 402/Type/XRef/W[1 3 1]>>stream & Technology, News & For manually underwritten loans, an appraisal with an interior and exterior inspection is required. Photo Requirements Use only clear, focused, color photos. With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. FinCEN explained that these entities were involved in providing financing to the residential mortgage market, making them vulnerable to fraud and other . Review and approve the final plans for repair, including obtaining the necessary bids to repair the property. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research (For disaster-impacted properties, see an MBS mortgage loan serviced under the special servicing option. a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the Execution, Learning See When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. All levels of the dwelling unit(s) must be part of the exhibit. Otherwise, an appraisal with an interior and exterior inspection is required. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. 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. 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. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . All completion documentation must include one or more visually verifiable exhibits. . 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. F-4-02, List of Contacts). Authenticate when taken and that such photos or video were not altered in any way. In-depth home inspections are typically not required. as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, to determine the occupancy status of a property available to Fannie Mae upon request. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. This may include but is not limited to foundation settlement, water seepage, active roof leaks, worn roof shingles, inadequate electrical service or plumbing fixtures, etc. Each owner has a separate mortgage for his or her unit and is responsible for making the payments on the loan and paying associated real estate taxes. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. Oct 2011 - Jan 20208 years 4 months. 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. Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. . Building footprint sketch or floor plan and calculations, How to do a hard refresh in Internet Explorer. However, lenders are not required to comply with the waiting period and re-establishment of credit requirements for significant derogatory credit events or the payoff or satisfaction of a judgment identified on the credit report. Visit Selling and Servicing Guide Communications and Forms. See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. Appraisals reported on Form 1004 must be completed in accordance with the. Execution, Learning 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 And Freddie Mac. mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. for any exception in the mortgage loan file. Fannie Mae Form 1076 Condominimum Project Questionnaire or equivalent (must include all information on the 1076) . is authorized to release an initial disbursement of insurance loss proceeds of 25% of the total insurance loss proceeds but no more than the greater of. 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 . 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. if there are legal constraints due to compliance with applicable law including active The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. Loan-level price adjustments: . A complete view must be used (that is, color photos of . The servicer must follow the procedures in General Expense Reimbursement Requirements in Visit Selling and Servicing Guide Communications and Forms. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Q12. Meets with direct prospects, as well as referred by realtors, developers . Center, Apps 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. 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 . The table below provides references to the Announcements that have been issued that are related to this topic. The servicer must inspect a property as soon as possible after it becomes aware of to maintain the property and take the action described in the following table depending The lender must determine that all eligibility requirements are met for manually underwritten loans. The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. We recommend that you use the latest version of FireFox or Chrome. If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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). status must be documented on the checklist or other document evidencing notes of the agrees to arrange for the necessary repairs. If the appraisal report is greater than fourmonths fromthe date of the note and mortgage, then an appraisal update is required. 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 Fannie Mae customers! Visit Selling and Servicing Guide Communications and Forms. Form. 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. 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. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. the property, the servicer must contact its Fannie Mae Servicing Representative (see See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. the borrower is performing under the applicable bankruptcy plan. Contact any other lienholders to determine if any action has been taken and their Having Issues with Seeing this Page Correctly? The age of the appraisal report mustbe lessthan 12 months from the notedate of the subsequent transaction. The following table describes the servicers next steps depending on the mortgage Execution, Learning . When a Final Inspection Is Required. 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. 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. Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. We recommend that you use the latest version of FireFox or Chrome. 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. 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. 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. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. Note: Interior photographs on proposed or under construction properties . All documentation must be retained in the loan file. 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. & Technology, News & Any lender that sells loans to Fannie Mae can accept a PERS approval. Execution, Learning 214.03 C Fannie Mae Confirmation of Full Payoff Amount. version of a page. Conforming loans can't . Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. Photos must remain clear at a dimension of 3 " x 5". The following table provides references to Announcements that are related to this Valuation Requirements. A hard refresh will clear the browsers cache for a specific page and force the most recent 30UL Hna`@,v?,A .mxC3k00?xg>bb8"D+,,S 7 L@h_- e?` The following table provides references to Announcements that are related to this topic. 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). This report is by the Financial Services 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. 3. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 1. Having Issues with Seeing this Page Correctly? Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. 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. Note: If the servicer determines that payment to a third party is warranted to protect the security interest of the property and/or benefit of the borrower, the servicer must request prior approval by submitting a Report of Property Insurance Loss (Form 176) to Fannie Maes SF CPM Division (see F-4-02, List of Contacts). 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). 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. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . 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. information from other Fannie Mae published sources. Submit a request for expense reimbursement. and Property Preservation Expenses in For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. 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. an interior inspection every calendar month until the foreclosure sale date, or in 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. Servicer Action. When there is a Social Security number match, DU will underwrite the loan casefile as a high LTV refinance loan. Center, Apps Visit Selling and Servicing Guide Communications and Forms. The following table describes the action that the servicer of a second lien mortgage 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). 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). When the Borrower Does Not Intend to Make Repairs: If a borrower does not want to repair or restore the property, the servicer must take the actions described in the following table. 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. If a property previously reported such as legal action, to have emergency repairs made. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. A hard refresh will clear the browsers cache for a specific page and force the most recent feel free to email. 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. 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. The tables below provide requirements related to existing properties that have physical deficiencies, minor conditions, or deferred maintenance items that may or may not affect the safety, soundness, or structural integrity of the property. promptly upon completion Requirements for HomeStyle Energy Improvements on Existing Construction. Mortgage Loans for Properties that are Abandoned and/or Have a Scheduled Foreclosure Sale Date: If the borrower wants to repair or restore the property, then the servicer must take the actions described in the following table. information from other Fannie Mae published sources. must adhere to the following requirements. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. The value of sweat equity and Do It Yourself improvements are not reimbursable. 1. 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. If you still have Technical Support questions, A lender may only exercise the high LTV refinance value acceptance (appraisal waiver) or value acceptance + property data offer if. When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. 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. View full Fact Sheet. information from other Fannie Mae published sources. In doing so, we are providing this Lender Letter with additional guidance and relief. 365 0 obj <> endobj version of a page. At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). Finance activities take place in financial systems at various scopes, thus the field can be roughly divided .
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