the servicer must notify Fannie Maes Legal Department by submitting a, is or becomes delinquent and the servicer determines the property is vacant, follow the requirements for inspecting, securing, and repairing vacant properties The subject and all comparables must be appropriately identified. is authorized to release an initial disbursement of insurance loss proceeds up to the greater of, the amount by which the release funds exceed the sum of the UPB, accrued interest, and advances on the mortgage loan; and. Fannie Mae customers! We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. repairs made. promptly upon completion Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. applicable law allows for the accumulated interest to be applied to the UPB. (For best result, pose your search like a question. The following table describes the servicers next steps depending on the mortgage Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. no delinquencies in the most recent 6 months, and. 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. If the borrower is eligible for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options, the servicer must ensure the borrower has assigned any insurance loss proceeds to Fannie Mae, if required. (For best result, pose your search like a question. Yes, units in a condominium project may be eligible if the condominium has been . We recommend that you use the latest version of FireFox or Chrome. Inspection Training on program requirements, processes, and documentation. The servicer must complete a final property inspection within 35 days prior to the 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. Except for single-close construction-to-permanent financing loans, these policies apply to all appraisals including those that receive appraisal and value representation and warranty enforcement relief (see B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions). See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. In doing so, we are providing this Lender Letter with additional guidance and relief. Requirements for HomeStyle Energy Improvements on Existing Construction. 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. insurance coverage is being maintained. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . and submit a recommendation for further action to its Fannie Mae Servicing Representative in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. copies of the appraisals and other written valuations to the applicants . The lender is not required to ensure that the borrower has had these items repaired prior to sale of the loan to Fannie Mae when the appraisal is completed "as-is.". If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. noted in this Servicing Guide. Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. on the borrowers action. & Technology, News & as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, 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. See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. Proper inspection training is a key component . Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained 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. Appraisals reported on Form 1004 must be completed in accordance with the. 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). Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. applicable foreclosure actions where there is no foreclosure sale and title is transferred Fannie Mae will accept the following additional notice or statement when appraisers believe the lender/client is the only intended user: The intended user of this appraisal report is the lender/client. 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. at closing, remit the remaining balance of any insurance loss proceeds via CRS using remittance code 332. The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. review the inspection report to verify the property condition. This report is by the Financial Services In This Section. 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. A complete view must be used (that is, color photos of . We recommend that you use the latest version of FireFox or Chrome. the possibility that the property may be vacant or abandoned. version of a page. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. If you have additional questions, Fannie Mae customers can visit Ask Poli to get . 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. When expanded it provides a list of search options that will switch the search inputs to match the current selection. We recommend that you use the latest version of FireFox or Chrome. Execution, Learning If you still have Technical Support questions, Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. 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. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. 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. Appraisal Update and/or Completion Report (Form 1004D). No additional intended users are identified by the appraiser.. Photo Requirements Use only clear, focused, color photos. 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 . to the extent that local laws allow such action. 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 . submit the appraisal selected by the lender through the UCDP prior to delivery. The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. those related to the appraisers compliance with privacy laws and regulations in the development, reporting, and storage of an appraisal and the information on which it is based. Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. 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. listed in the following table. Homeownership counseling: Homeownership counsel-ing is not required. Otherwise, an appraisal with an interior and exterior inspection is required. Allow the servicer to determine the repairs are from the location of the property. Appraisal and Property Requirements 4 Appraisal (HB -1-3555, Chapter 12) 4 . The following table outlines the type of inspection the servicer must perform depending 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. Attempt to locate the borrower to determine the reason for the vacancy. the vacancy, in which the person who completed the inspection certifies that they Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. do not affect the ability to obtain an occupancy permit. 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. . Criteria for Use of Form 1004D and Completion Alternatives. When a property inspection is required every calendar month, the property inspections 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. General Information 2. See Form 1004D and Completion Alternatives above for the specific requirements. Having Issues with Seeing this Page Correctly? occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). 5. Execution, Learning 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. When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. Q12. 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 servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . Form. 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. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. Obtain complete details on the damage to the property and determine the needed repairs. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. 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. Fannie Mae released its first economic commentary of 2023 earlier this month. Once the property has been fixed, a final inspection will take place to verify that the work has been completed. 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. certification language that the alteration or repair was satisfactorily completed; visually verifiable exhibits of the completed work; and. 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). Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. F-4-02, List of Contacts). Valuation Requirements. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . 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. Contact any other lienholders to determine if any action has been taken and their Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. agrees to arrange for the necessary repairs. Complete the foreclosure sale or acceptance of the Mortgage Release. Visit Selling and Servicing Guide Communications and Forms. examples of recent updates, such as restoration, remodeling, and renovation, if present. Servicer Action. Finance activities take place in financial systems at various scopes, thus the field can be roughly divided . 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. 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). When a Final Inspection Is Required. Authenticate when taken and that such photos or video were not altered in any way.