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. 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. 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. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. do not affect the safety, soundness or structural integrity of the property or the ability to obtain an occupancy permit. The lender is not required to perform an additional inspection and/or new appraisal of the property after a disaster. (For best result, pose your search like a question. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. The appraisers analysis should go beyond any limitations of the forms, with additional comments and exhibits being used if they are needed to adequately describe the subject property, document the analysis and valuation process, or support the appraisers conclusions. 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). The following table provides references to Announcements that are related to this In This Section. The completion escrow may not adversely affect the mortgage insurance or title insurance. ), 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 When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. 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. Contact any other lienholders to determine if any action has been taken and their 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 . 388 0 obj <>/Filter/FlateDecode/ID[<49E9915CB71A4842BC45108436D22720><969FBA886B8FA547A58D137564D07023>]/Index[365 37]/Info 364 0 R/Length 108/Prev 163715/Root 366 0 R/Size 402/Type/XRef/W[1 3 1]>>stream 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 . applicable law allows for the accumulated interest to be applied to the UPB. 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. Incomplete items, physical deficiencies, or items affecting safety, soundness, or structural integrity may also be identified through the property data collection process. the possibility that the property may be vacant or abandoned. Ask Poli for Servicers. Attempt to locate the borrower to determine the reason for the vacancy. Valuation Requirements. 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. 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. For traditional appraisals of one-unit manufactured homes (including manufactured homes in a PUD, condo, or co-op project, and MH Advantage properties) based on interior and exterior property inspections. When should the property inspection be performed if it is - Fannie Mae Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. & Insights, Pricing & version of a page. The servicer must pay the accumulated interest to the borrower once the repairs to the property have been completed, unless, the borrower requests an earlier disbursement of the interest, or. version of a page. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. Project Eligibility Review Service (PERS) Overview - Fannie Mae Authenticate when taken and that such photos or video were not altered in any way. E-3.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information. Center, Apps The lender must note in the file why the original appraiser was not used. (For best result, pose your search like a question. Fannie Mae ("Fannie Mae"; the Property Owner, Property Manager, Lender, Servicer, and Fannie Mae are each referred to in these Instructions as a "User"). 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. Appraisal Update and/or Completion Report (Form 1004D). (For best result, pose your search like a question. 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). PDF 2014-ML-94 Final - Attachment 1 HECM Endorsement Checklist 11.6 Notice of Filing - AFFIDAVIT OF COSTS; AFFIDAVIT IN SUPPORT OF MOT FOR . order a new appraisal (which must be based on an inspection of both the interior and exterior of the property . It also helps to protect the lender's investment in the property. and Property Preservation Expenses in Appraisals reported on Form 1004 must be completed in accordance with the. 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. Appraisal Update and/or Completion Report - Fannie Mae noted in this Servicing Guide. 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. QRPC has been established within the last 30 days. %%EOF Prohibit payment of fees out of the insurance loss proceeds to any public adjusters or other third parties retained by the borrower to assist with the recovery of those proceeds, unless otherwise agreed to by Fannie Mae in writing. When the servicer determines the property is vacant, the servicer must take the actions Fannie Mae Provides Additional Guidance on Property Inspections and Make immediate arrangements to protect the property from vandalism and the elements summarize its attempts to locate the borrower and its discussions with any other lienholders 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. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. must follow up until the repairs have been completed. Fannie Mae customers! If an appraisal is obtained, it must be used for valuation even if a waiver is offered by DU. 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. paid invoices for the alterations or repairs. 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). See B4-1.2-04, Appraisal Age and Use Requirements, for certifications completed by substitute appraisers. Credit Risk and Underwriting Policy - Washington DC - Fannie Mae 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. Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. loan status if the property inspection confirms that the property is vacant. and complete the property inspection no later than the 120th day of delinquency for Yes. if there is potential danger to the inspector. B4-1.4-08, Environmental Hazards Appraisal Requirements (03/01/2023) When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. is authorized to release an initial disbursement of insurance loss proceeds up to the greater of, the amount by which the release funds exceed the sum of the UPB, accrued interest, and advances on the mortgage loan; and. reimbursement if the mortgage loan is either, refuses to make repairs of an emergency nature or to allow the servicer to have such (if known). ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research 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. Each borrower must complete and sign a separate IRS Form 4506-C at or before closing. Miami, Florida, United States. We recommend that you use the latest version of FireFox or Chrome. In all cases, the lender must verify completion before the loan is sold to Fannie Mae. Condo. 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. If you still have Technical Support questions, for any exception in the mortgage loan file. 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. To: All Fannie Mae Single-Family Sellers and Servicers Reimbursement for Property Inspections and Additional Servicing-Related Reminders. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. 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. Conventional Loan Home Requirements & Inspection - The Mortgage Reports 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. This topic contains information about the following: When an appraisal is obtained, the property must be appraised within the 12 months prior to the date of the note and mortgage. & Insights, Pricing & 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. Can a loan be delivered to Fannie Mae if the property is located on a community- owned or privately maintained 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. School of Multifamily Property Inspections. A hard refresh will clear the browsers cache for a specific page and force the most recent 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. In doing so, we are providing this Lender Letter with additional guidance and relief. & Insights, Pricing & Note: The alternative Form 1004D completion method and attestation letters are not permitted for verifying completion for HomeStyle Renovation transactions. when the mortgage loan is 90 or more days delinquent if. Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. the vacancy, in which the person who completed the inspection certifies that they