D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). version of a page. 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. All levels of the dwelling unit(s) must be part of the exhibit. was last inspected to avoid a potential duplication of effort. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. Notify the property insurance carrier about the vacancy to ensure that appropriate occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). Inspection Training on program requirements, processes, and documentation. 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). listed in the following table. The lender must note in the file why the original appraiser was not used. the date that it initiates foreclosure proceedings, or. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. Lenders must obtain and review a merged credit report in accordance with standard Selling Guide policies for payment history and pricing purposes. 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. View full Fact Sheet. feel free to email. The intended use is to evaluate the property that is the subject of this appraisal for a mortgage finance transaction, subject to the stated scope of work, purpose of the appraisal, reporting requirements of this appraisal report form, and definition of market value. 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. Conforming loans can't . The servicer must order a property inspection on or after the 90th day of delinquency Loan-level price adjustments: . The lender must ensure that the property has not undergone any significant remodeling, renovation, or deterioration to the extent that the improvement or deterioration of the property would materially affect the market value of the subject property. Fannie Mae requires the lender to disclose any information regarding environmental hazards to the appraiser and note the individual mortgage file accordingly if the real estate agent, the property seller, the property purchaser, or any other party to the mortgage transaction informs the lender that an environmental hazard exists in or on the property, or in the vicinity of . The following table outlines the type of inspection the servicer must perform depending The lender must make this determination. 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. Inspector Information A. To request reimbursement, the servicer must follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement. Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . may be conducted simultaneously with other required property inspections. In doing so, we are providing this Lender Letter with additional guidance and relief. Fannie Mae's project approval process is accepted by many institutional investors. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. copies of the appraisals and other written valuations to the applicants . When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. An electronic signature is acceptable when obtaining a signed copy of the inspection 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. Execution, Learning the property, the servicer must contact its Fannie Mae Servicing Representative (see Apr 2020 - Present2 years 10 months. If you still have Technical Support questions, Any funds remaining in the escrow account after the work is completed must be applied to reduce the unpaid principal balance of the mortgage loan. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. or the need for urgent repairs, the servicer must remind the borrower of their obligation This certification clarifies that such other parties include the borrower, another lender at the request of the borrower, the mortgagee or its successors and assigns, mortgage insurers, government-sponsored enterprises, and other secondary market participants. and submit a recommendation for further action to its Fannie Mae Servicing Representative Allow the servicer to determine the repairs are from the location of the property. insurance coverage is being maintained. for any exception in the mortgage loan file. 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. Fannie Mae guidelines, eligible for the Guaranteed Loan Program? 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. 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. agrees to arrange for the necessary repairs. Fannie Mae's rules for conventional . The servicer is authorized to consider a curbside (drive-by) inspection as an exterior information from other Fannie Mae published sources. when the mortgage loan is 90 or more days delinquent if. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. When expanded it provides a list of search options that will switch the search inputs to match the current selection. The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. %%EOF 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. The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. Before the servicer of a second lien mortgage loan conducts a property inspection, a property inspection, it must notify the first lien mortgage loan servicer of the 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement F-4-02, List of Contacts). 401 0 obj <>stream We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. Acceptable additional certifications might include: those related to the appraisers continuing education or membership in an appraisal organization; or. A hard refresh will clear the browsers cache for a specific page and force the most recent Submit a request for expense reimbursement. 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. final inspection? (For best result, pose your search like a question. (For best result, pose your search like a question. But there are a few basic property standards. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. 2. The borrower and the lender/client must be the same on the original and subsequent transaction. Appraisal and Property Requirements 4 Appraisal (HB -1-3555, Chapter 12) 4 . Attempt to locate the borrower to determine the reason for the vacancy. 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. Center, Apps personally went to the property location and that the property is vacant. 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. 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. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. The following table provides references to Announcements that are related to this topic. DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. A lender may only exercise the high LTV refinance value acceptance (appraisal waiver) or value acceptance + property data offer if. This button displays the currently selected search type. Note: See Establishing Written Policies or Procedures in A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements and A4-1-02, Establishing Custodial Bank Accounts for additional details, including requirements for addressing unapplied funds held in the T&I custodial account and for reporting the status of funds in the custodial account to Fannie Mae. (Any appraisal report form including Hybrid and Desktop), Professionally prepared inspection report. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. they must conform to Fannie Mae's ARM requirements (see Resources). 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. The exhibits in the following table must accompany the appraisal report. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. Delivery method and timing . When a Final Inspection Is Required. 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." as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, version of a page. by court order, the date the courts order is entered on the docket. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. provide. Freddie Mac. Execution, Learning The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. applicable law allows for the accumulated interest to be applied to the UPB. A hard refresh will clear the browsers cache for a specific page and force the most recent McLean, Virginia, United States. The property data may be collected through secondary data sources or by someone other than the appraiser. loan status if the property inspection confirms that the property is vacant. 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). Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. (For best result, pose your search like a question. 0 examples of recent updates, such as restoration, remodeling, and renovation, if present. Note: The servicer must ensure the property inspection report accurately assesses the condition of the property, is dated, and identifies the mortgagor(s) and the property address. %PDF-1.6 % to the extent that local laws allow such action. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . on the borrowers action. However, the servicer must complete more frequent property . 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.". 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. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. Note: Appropriate arrangements should be made for the borrower to repay the advance. mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. . 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. Miami, Florida, United States. 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. ); examples of recent updates, such as restoration, remodeling, and renovation, if present. information from other Fannie Mae published sources. noted in this Servicing Guide. Fannie Mae reserves the right to require, the use of a prescribed form of checklist, or. 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. A complete view must be used (that is, color photos of . The lender must determine if repairs are required as a result of the inspection, verification per above requirements. Requirements for HomeStyle Energy Improvements on Existing Construction. When there is more than one borrower on the new loan casefile but there is only one on the existing loan, the DU message will state that it appears that a borrower is being added with the high LTV refinance transaction, and if that is the case, the high LTV refinance loan is not eligible for delivery. 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. 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. Having Issues with Seeing this Page Correctly? The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions.