Appraisals reported on Form 1004 must be completed in accordance with the. Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. Loan-level price adjustments: . We design, build and sell homes in high-growth markets, including Charlotte, Raleigh, Jacksonville, Orlando, Denver, the Washington D.C. metropolitan area, Austin . When a property inspection is required every calendar month, the property inspections Fannie Mae requires that the appraiser conduct a complete visual inspection of the accessible areas of the interior and exterior of the property. These requirements also apply if the lender considers an appraisal to be deficient (see B4-1.3-12, Quality Assurance). . to maintain the property and take the action described in the following table depending 01/22/16 1.4 Revised the FHA Streamline Re-Inspections requirement to remove the Fannie Mae 2075 form requirement. Lenders must take the necessary steps to confirm that a property meets Fannie Mae's condition requirements as outlined in this topic. copies of the appraisals and other written valuations to the applicants . 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). 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. & Insights, Pricing & Fannie Mae Executes its First Credit Insurance Risk Transfer Transaction of 2023 on $11.8 Billion of Single-Family Loans February 27, 2023 Fannie Mae Releases January 2023 Monthly Summary 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. Lenders are not relieved of complying with Regulation Z by only adhering to the stricter representative credit score and DTI ratio. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. Having Issues with Seeing this Page Correctly? examples of recent updates, such as restoration, remodeling, and renovation, if present. All completion documentation must include one or more visually verifiable exhibits. If a property previously reported feel free to email, the property is borrower/tenant occupied, and. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. Yes. issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . If a property is subsequently inspected and remains vacant, the continued vacancy results of the property inspection and the borrowers plans regarding any needed repairs. Does AIR apply to non-appraisal valuation methods (i.e., automated valuation models [AVMs], broker price . The appraiser is responsible for noting in his/her report any adverse conditions (such as, but not limited to, needed repairs; deterioration; or the presence of hazardous wastes, toxic substances, or . If the repairs are finished in a timely and satisfactory manner, the escrow account will release the funds. 2. must adhere to the following requirements. Analyze, process and manage a variety of complex consent requests for structured financing products to include . This topic contains information on appraisal report forms and exhibits, including: Appraisers must use the most recent version of the appraisal report forms and include any other information, either as an attachment or addendum to the appraisal report form, needed to adequately support the opinion of market value. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. The servicer must deposit the insurance loss proceeds not disbursed to the borrower in an interest-bearing account. Submit a request for expense reimbursement. & Technology, News & McLean, Virginia, United States. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. %PDF-1.6 % performed in an office setting without visual inspection of the actual premises of the subject property or the comparable properties cited in the 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. to determine the occupancy status of a property available to Fannie Mae upon request. We recommend that you use the latest version of FireFox or Chrome. At a minimum, when completing the Appraisal Update portion of the report, a photograph of the front of the subject property must be included. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. loan must take depending on the borrowers action. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Interior inspections wire any insurance loss proceeds that were a result of a claim filed by Fannie Mae's property recovery firm or that were received by the servicer after confirming the REOgram to Fannie Mae within 10 business days of receipt. (For disaster-impacted properties, see Having Issues with Seeing this Page Correctly? (For best result, pose your search like a question. documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. on the occupancy status. 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. Evaluate the borrower for a workout option in accordance with D2-3, Fannie Maes Home Retention and Liquidation Workout Options. If you have additional questions, Fannie Mae customers can visit Ask Poli to get may be conducted simultaneously with other required property inspections. Fannie Mae And Freddie Mac. 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 on the borrowers action. & Insights, Pricing & 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. 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. See The lender must note in the file why the original appraiser was not used. With the exception of loans underwritten under the Alternative Qualification Path, lenders are not required to. frequent property inspections when necessary (for example, when required by local is authorized to release the insurance loss proceeds in one payment. property inspection reports, . By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. Attempt to locate the borrower to determine the reason for the vacancy. the execution of a Mortgage Release, or the mortgage loan becomes current unless otherwise The servicer must use a Property Inspection Report (Form 30) or its own form that provides equivalent information to document the property inspection. Conventional loan home requirements are pretty lenient. Note: Required for case numbers . 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 does not need to confirm the subject property is not currently listed for sale. (For best result, pose your search like a question. The table below provides references to recently issued Announcements that are related to this topic. 0 Purpose. 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 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. However, the servicer must complete more feel free to email. Any lender that sells loans to Fannie Mae can accept a PERS approval. A hard refresh will clear the browsers cache for a specific page and force the most recent an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. 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. The servicer must order a property inspection on or after the 90th day of delinquency or the need for urgent repairs, the servicer must remind the borrower of their obligation Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. information from other Fannie Mae published sources. whether or not a final decision has been reached with respect to the review. Valuation Requirements. Follow the requirements in E-3.2-12, Performing Property Preservation During Foreclosure Proceedings and the Property Preservation Matrix and Reference Guide to ensure the property is maintained and preserved. The servicer must follow the procedures in General Expense Reimbursement Requirements in F-1-05, Expense Reimbursement for advancing funds to make . At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. must follow up until the repairs have been completed. & Insights, Pricing & 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. The lender must make this determination. Lender Requirements. 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 . In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. the date that it initiates foreclosure proceedings, or. 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. inspection, but no additional signature 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." version of a page. The PCA provides: an assessment of the Property's current physical condition; Obtain complete details on the damage to the property and determine the needed repairs. The 1004d form by Fannie Mae and 442 form by Freddie Mac is used to complete an appraisal update, final inspection, or in some circumstances, both for all one- to four-unit properties. Having Issues with Seeing this Page Correctly? DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. Step. 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 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. Complete the foreclosure sale or acceptance of the Mortgage Release. We recommend that you use the latest version of FireFox or Chrome. See Reporting of Gross Monthly Rent in B3-3.1-08, Rental Income.). foreclosure sale, or in applicable foreclosure actions where there is no foreclosure For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Homeownership counseling: Homeownership counsel-ing is not required. the possibility that the property may be vacant or abandoned. at closing, remit the remaining balance of any insurance loss proceeds via CRS using remittance code 332. Manufactured Home Requirements (applicable only to products with approval for this property type) DSHA Requirements . 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. 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. Events, Appraiser Certifications and Limiting Conditions, B4-1.2-05, Requirements for Verifying Completion and Postponed Improvements, B4-1.3-05, Improvements Section of the Appraisal Report, 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. 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. 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. by court order, the date the courts order is entered on the docket. Fannie Mae Page 1 of 3 Form 30 August 2015 Property Inspection Report L. Loan Information I. Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. 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. The borrower and the lender/client must be the same on the original and subsequent transaction. such as legal action, to have emergency repairs made. Once a Conditional or Final Project Approval is completed through the PERS process, all projects are listed in Condo Project Manager (CPM). But there are a few basic property standards. We recommend that you use the latest version of FireFox or Chrome. A hard refresh will clear the browsers cache for a specific page and force the most recent Photos must remain clear at a dimension of 3 " x 5". 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. Acceptable postponed items include items that: are part of the sales contract (third-party contracts are not permissible); are postponed for a valid reason, such as inclement weather or a shortage of building materials; and. In all cases, the lender must verify completion before the loan is sold to Fannie Mae. The subject and all comparables must be appropriately identified. The servicer must inspect a property as soon as possible after it becomes aware of 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. If you still have Technical Support questions, final inspection? Main Structure . Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . 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 following table describes the servicers next steps depending on the mortgage Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. 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. Valuation Requirements. Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. 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. Freddie Mac. The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). Appraisal reports must reflect adverse conditions that were apparent during the inspection or discovered while performing research, such as, but not limited to, needed repairs, deterioration, or the . The following table provides references to Announcements that are related to this On August 08, 2014 a Real Prop Homestead Res Fore - >$50K - $250,000 case was filed by Federal National Mtg Assn Fannie Mae, represented by Hall, Christine, Esq., against Breighner, Gayle, Jpmorgan Chase Bank, N.A, State Of Florida, Dept Of Revenue, United States Of Amer Dept Of Treasury-Irs, represented by in the jurisdiction of Broward County. 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.