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. . 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. PDF 2014-ML-94 Final - Attachment 1 HECM Endorsement Checklist 11.6 We recommend that you use the latest version of FireFox or Chrome. Center, Apps 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. When expanded it provides a list of search options that will switch the search inputs to match the current selection. When a borrower Social Security number is matched using 7 or 8 digits of the 9-digit Social Security number, the DU message will specify that the Social Security numbers are one or two digits different and will require the lender to confirm the borrowers on the existing loan are the same borrowers that will be on the new loan. The appraisers certification #23 is an acknowledgment by the appraiser that certain parties to a mortgage finance transaction that are not the lender/client and/or intended user may rely on the appraisal report. a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the version of a page. 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 servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. 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). 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). 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. Q23. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). Also, lenders are not required to review or consider Form 1003 Declarations in the underwriting evaluation. 1. paid invoices for the alterations or repairs. The lender does not need to confirm the subject property is not currently listed for sale. feel free to email. version of a page. Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. Notify the property insurance carrier about the vacancy to ensure that appropriate & Insights, Pricing & 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). 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. Appraisal and Property Requirements 4 Appraisal (HB -1-3555, Chapter 12) 4 . The servicer must release the insurance loss proceeds received from the insurance carrier based on the status of the mortgage loan at the time of the loss event. If the borrower is not eligible for a workout option in accordance with D2-3, Fannie Maes 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 Maes servicing solutions system. submit the appraisal selected by the lender through the UCDP prior to delivery. Appraisal Update and/or Completion Report - Fannie Mae Interior inspections applicable law allows for the accumulated interest to be applied to the UPB. 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. Appraisal reports must be completed on one of the following Fannie Mae appraisal forms. Home Inspection | Fannie Mae If the interior layout of the dwelling unit(s) is atypical or functionally obsolete, thus limiting the market appeal for the property in comparison to competitive properties in the neighborhood, Fannie Mae also requires a floor plan. Appraisals reported on Form 1073 must be completed in accordance with the UAD Specification. 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. Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. 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. 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). How to do a hard refresh in Internet Explorer. To request reimbursement, the servicer must follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement. H. Rept. 117-701 - REPORT ON THE ACTIVITY OF THE COMMITTEE ON FINANCIAL See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. 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. The lender must determine that all eligibility requirements are met for manually underwritten loans. promptly upon completion Appraisals reported on Form 1004 Hybrid must be completed in accordance with the UAD Specification. F-4-02, List of Contacts). 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 ("Fannie Mae"; the Property Owner, Property Manager, Lender, Servicer, and Fannie Mae are each referred to in these Instructions as a "User"). 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. Having Issues with Seeing this Page Correctly? Clear, descriptive color photographs showing the front, back, and a street scene of the subject property and the front of each comparable. and Property Preservation Expenses in A2-1-01, General Servicer Duties and Responsibilities and the Property Preservation Matrix and Reference Guide for additional information. Will Fannie Mae lend on a property where the utilities were not turned on at the time of the appraisal inspection? However, the servicer must complete more frequent property . Sherry H. - Multifamily Asset Management Senior, Structured - LinkedIn We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. The table below provides references to the Announcements that have been issued that are related to this topic. 3. 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. 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. If, after completion of the review, Fannie Mae determines that the mortgage loan did not meet its eligibility or underwriting requirements and Fannie Mae has incurred a loss by selling the property, the seller/servicer will be required . Fannie Mae customers! Business Support Representative / Loan Officer. in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. Notice of Filing - Original Note, Copy of Original Mortgage d, Assignment of Mortgage, Demand Letter , Loan Payment Hitory & Verified Statement as to Plaintiff's CostsParty: Plaintiff Federal Nat Mtg Assn ("FANNIE MAE") For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. & Technology, News & feel free to email. 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 . an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. The . What Is An Escrow Holdback? | Rocket Mortgage Appraisal and Property -Related - Fannie Mae 5. 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 . Servicer Action. inspection, but no additional signature is required. In a 2014 final rule, FinCEN extended similar requirements to the housing-related Government Sponsored Enterprises ("GSEs")Fannie Mae, Freddie Mac, and the Federal Home Loan Banks. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. 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. an interior inspection every calendar month until the foreclosure sale date, or in The MarketWatch News Department was not involved in the creation of this content. 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. Uniform Residential Appraisal Report ( Form 1004 ) 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. 90 or more days delinquent without regard to whether QRPC, as described in 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. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. version of a page. 214.03 C Fannie Mae Confirmation of Full Payoff Amount. When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. frequent property inspections when necessary (for example, when required by local ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research The following table outlines the type of inspection the servicer must perform depending Fannie Mae Provides Additional Guidance on Property Inspections and Oct 2011 - Jan 20208 years 4 months. 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). The original appraiser should complete the appraisal update; however, lenders may use substitute appraisers. Authenticate when taken and that such photos or video were not altered in any way. 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. 0 Form. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. The borrower and the lender/client must be the same on the original and subsequent transaction. See Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional information. information from other Fannie Mae published sources. provide. A hard refresh will clear the browsers cache for a specific page and force the most recent applicable foreclosure actions where there is no foreclosure sale and title is transferred The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. Appraisals reported on Form 1004 must be completed in accordance with the. When a Final Inspection Is Required. Note: The servicer must not issue any insurance loss proceeds to pay fees to its property recovery firm or any other servicer expenses, and Fannie Mae will not reimburse fees to any servicer's property recovery firm or for any other related servicer expense. The Fannie Mae "temporary" requirements apply to all condominiums and cooperatives with five or more attached units and went into effect for "whole loans purchased on or after January 1, 2022. Inspection Manual - Fannie Mae 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. Appraisal Form 1004d - Updates & Completions - Pro Teck ordinance or based on property condition). 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. Otherwise, an appraisal with an interior and exterior inspection is required. personally went to the property location and that the property is vacant. (For disaster-impacted properties, see 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. endstream endobj startxref 1004D Appraisal Update vs. Completion Certification (Final Inspection If you have additional questions, Fannie Mae customers can visit Ask Poli to get Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. 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). Contact any other lienholders to determine if any action has been taken and their 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. Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. 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. Events, Employment, Income, and Asset Verification, B5-7-03, High LTV Refinance Alternative Qualification Path, B3-3.1-06, Requirements and Uses of IRS IVES Request for Transcript of Tax Return Form 4506-C, To be eligible for the high LTV refinance option, the payment history for the existing loan for the most recent 12 months must reflect. The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. 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.
fannie mae final inspection requirements