The table below provides references to recently issued Announcements that are related to this topic. A map showing the location of the subject property and the comparables that the appraiser used. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. including loan amount limits and credit score requirements. Fannie Mae allows the sale of a loan before construction or energy improvements are complete if certain requirements are met. 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. 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. Business Support Representative / Loan Officer. Having Issues with Seeing this Page Correctly? were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. Execution, Learning Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D. If you still have Technical Support questions, The property data may be collected through secondary data sources or by someone other than the appraiser. The appraisal update portion of the 1004d and 442 is used to confirm the value of the subject property has not declined . Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. Contact any other lienholders to determine if any action has been taken and their Inspector Information A. 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). Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. 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. inspection, but no additional signature is required. version of a page. & Insights, Pricing & Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. such as legal action, to have emergency repairs made. (For best result, pose your search like a question. For traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. 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 . the property, the servicer must contact its Fannie Mae Servicing Representative (see QRPC has been established within the last 30 days. Homeownership counseling: Homeownership counsel-ing is not required. No additional intended users are identified by the appraiser.. Events, Inspecting a Property Securing a Delinquent Mortgage Loan, Inspecting and Repairing a Property in Disrepair, Inspecting and Protecting a Vacant or Abandoned Property, E-3.3-03, Inspecting Properties Prior to Foreclosure Sale, A4-2.1-02, Property Inspection Vendor Management and Oversight, D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower, Property Preservation Matrix and Reference Guide, A2-1-01, General Servicer Duties and Responsibilities, D2-2-01, Achieving Quality Right Party Contact with a Borrower, an interior inspection as allowed by applicable law, agrees to arrange for the necessary repairs and has the financial resources to do The value of sweat equity and Do It Yourself improvements are not reimbursable. With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. Servicer Action. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. If there are minor conditions or deferred maintenance items to be remedied or completed after closing, the lender may escrow for these items at its own discretion and still sellthe loan to Fannie Mae prior to the release of the escrow as long as the lender can ensure that these items do not affect the safety, soundness, or structural integrity of the property. 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. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. See B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements for information about completion alternative methods for the Form 1004D. Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. information from other Fannie Mae published sources. to be vacant becomes occupied, a new signed inspection report is required if the property 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. The servicer of a second lien mortgage loan must complete a property inspection of See loan status if the property inspection confirms that the property is vacant. 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. Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. 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. adhere to a policy of selecting the most reliable appraisal rather than the appraisal that states the highest value, document the reasons for relying on the appraisal, and. Any lender that sells loans to Fannie Mae can accept a PERS approval. Having Issues with Seeing this Page Correctly? See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. Requirements for HomeStyle Energy Improvements on Existing Construction. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. review the inspection report to verify the property condition. must determine what action the first lien mortgage loan servicer intends to take. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). To request reimbursement, the servicer must follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement. & Insights, Pricing & the vacancy, in which the person who completed the inspection certifies that they as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, Fannie Mae released its first economic commentary of 2023 earlier this month. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. is authorized to make the disbursement in one payment. 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. or. & Technology, News & 365 0 obj <> endobj in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. Execution, Learning ); examples of recent updates, such as restoration, remodeling, and renovation, if present. See preceding section, Age of Appraisal and Appraisal Update Requirements, for requirements for completing an appraisal update. 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. Attempt to locate the borrower to determine the reason for the vacancy. Launch Interior inspections A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. must adhere to the following requirements. We recommend that you use the latest version of FireFox or Chrome. 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. Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 0 & Insights, Pricing & 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. In addition, appraisals for units in condo projects that consist solely of detached dwellings may be documented on Form 1004, if the appraiser includes an adequate description of the project and information about the homeowners association fees and the quality of the project maintenance. 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. F-4-02, List of Contacts). a full payment has been received within the last 30 days, a workout option has been approved and the borrower is performing under the plan, If a property previously reported & Technology, News & A lender may only exercise the high LTV refinance value acceptance (appraisal waiver) or value acceptance + property data offer if. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). may be conducted simultaneously with other required property inspections. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. For appraisal updates and/or completion reports for all one- to four-unit properties. Visit Selling and Servicing Guide Communications and Forms. Execution, Learning The subject and all comparables must be appropriately identified. & Technology, News & 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.