For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. A link to the digital exhibits from within the form is acceptable but must be accessible by Fannie Mae for the life of the loan. Conventional Loan Home Requirements & Inspection - The Mortgage Reports By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure However, the servicer must not complete a property inspection every calendar month Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. The lender must make this determination. Otherwise, Form 1007 is not required. Center, Apps If you have additional questions, Fannie Mae customers can visit Ask Poli to get Fannie Mae customers! If you still have Technical Support questions, Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. 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). 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. must adhere to the following requirements. Miami, Florida, United States. 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. 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. Inspector Information A. With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. 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. The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. ), Escrow, Taxes, Assessments, and Insurance, Mortgage Loan Payment Processing, Remitting, Accounting, and Reporting, Default-Related Legal Services, Bankruptcy, Foreclosure Proceedings, and Acquired Properties, Servicing Guide Procedures, Exhibits, and Quick Reference Materials, Research 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. 30UL Hna`@,v?,A .mxC3k00?xg>bb8"D+,,S 7 L@h_- e?` Condo. Disburse the insurance loss proceeds in accordance with this, Deposit any funds not disbursed into an interest-bearing account (see. Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. final inspection? 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. Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. If the appraiser indicates on the Form 1004D that the property value has declined, then the lender must obtain a new appraisal for the property. PDF Correspondent Lending Conforming Agency Overlays In This Section. 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. represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. the date that it initiates foreclosure proceedings, or. Photo Requirements Use only clear, focused, color photos. However, the servicer must complete more frequent property . Lenders must obtain a final title report, which must not show any outstanding mechanics liens, take any exceptions to the postponed improvements, or take any exceptions to the escrow agreement. 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. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. (For best result, pose your search like a question. We recommend that you use the latest version of FireFox or Chrome. We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . For mortgage loans that are current or less than 31 days delinquent at the time of the loss event, the servicer is authorized to use borrower-submitted photos and/or video, or conduct servicer-directed video calls with the borrower to document the progress or completion of repairs of the property, provided that the conditions listed in the following table are met. 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 Maes lien. feel free to email, the property is borrower/tenant occupied, and. Fannie Mae does not require that the utilities that serve the property be turned on at the time of the inspection. Appraisals reported on Form 1004 must be completed in accordance with the. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. 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. Having Issues with Seeing this Page Correctly? In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. Main Structure . For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Atlanta, Georgia. Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. The . 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. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. The lender must note in the file why the original appraiser was not used. 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. When an appraisal is required and there are incomplete items, physical deficiencies, or items affecting the safety, soundness, or structural integrity of the improvements, the appraisal must be "subject to" completion of the specific repairs or alterations. Fannie Mae customers! 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. Valuation Requirements. Contact any other lienholders to determine if any action has been taken and their bankruptcy, or. What photographs are required to be included in the appraisal? - Fannie Mae Overall, the home inspection requirements . See B4-1.3-12, Quality Assurance, for information concerning changes to the appraised value. feel free to email. See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. 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. 2. Visit Selling and Servicing Guide Communications and Forms. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . Purpose. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 When should the property inspection be performed if it is - Fannie Mae For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. 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. is authorized to disburse the remaining funds in increments not to exceed 25% of the insurance loss proceeds following inspection of the repairs. See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. The following table describes the action that the servicer of a second lien mortgage B5-7-02, High LTV Refinance Underwriting, Documentation, and Collateral 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. 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. 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. The following table provides references to Announcements that are related to this topic. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. It should be noted that, in addition to these requirements, the appraiser is expected to provide any additional attachments or addenda to the appraisal report necessary to provide an adequately supported opinion of market value. & Technology, News & 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. Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. (see B5-7-02, High LTV Refinance Underwriting, Documentation, and Collateral Note: The servicer and/or the insurance company may not have reason to believe that a supplemental claim will be filed for additional damages at the time the initial loss proceeds are paid by the insurer; therefore, the servicer must disburse any insurance loss proceeds based on the requirements in this Guide without regard to whether supplemental loss proceeds will be received. Ask Poli for Servicers. 0 House report on REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL SERVICES OF THE UNITED STATES HOUSE OF REPRESENTATIVES FOR THE ONE HUNDRED AND SEVENTEENTH CONGRESS. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research For non-routine litigation matters, topic. Note: Required for case numbers . it must contact the first lien mortgage loan servicer to determine when the property 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. ); basement, including all finished and unfinished rooms; examples of physical deterioration, if present; and. The sketch must include the subject's exterior footprint with dimensions. All documentation must be retained in the loan file. If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. Finance - Wikipedia If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. Complaint (eFiled) - Party: Plaintiff Federal National Mtg Assn Fannie Mae 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. 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. If you still have Technical Support questions, Fannie Mae And Freddie Mac. a property inspection, it must notify the first lien mortgage loan servicer of the 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 . 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). when the mortgage loan is 90 or more days delinquent if. ), Escrow, Taxes, Assessments, and Insurance, Mortgage Loan Payment Processing, Remitting, Accounting, and Reporting, Default-Related Legal Services, Bankruptcy, Foreclosure Proceedings, and Acquired Properties, Servicing Guide Procedures, Exhibits, and Quick Reference Materials, Part D, Providing Solutions to a Borrower, Subpart D2, Assisting a Borrower Who is Facing Default or, Chapter D2-2, Requirements for Contacting a Borrower, D2-2-10, Requirements for Performing Property Inspections, Research Fannie Mae Home Inspection Requirements | Daystar Properties is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, Notice of Filing - Original Note, Copy of Original Mortgage d 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 . Conventional loan home requirements are pretty lenient. Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. & Insights, Pricing & Apr 2020 - Present2 years 10 months. 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. 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 . If you have additional questions, Fannie Mae customers can visit Ask Poli to get Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. 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. FinCEN explained that these entities were involved in providing financing to the residential mortgage market, making them vulnerable to fraud and other . Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. on the occupancy status. Visit Selling and Servicing Guide Communications and Forms. Allow the servicer to determine the repairs are from the location of the property. A footprint sketch or floor plan must be software-generated (not hand drawn) and indicate dimensions and calculations that demonstrate how thegross living area was derived. Appraiser Independence Requirements - Fannie Mae See Overview of General Servicer Duties and Responsibilities in