Additionally, in some circumstances, Fannie Mae allows a loan to be sold prior to improvements or repairs being completed if the lender complies with the requirements related to postponed improvements. 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. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. Authenticate when taken and that such photos or video were not altered in any way. documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure version of a page. School of Multifamily Property Inspections. (For best result, pose your search like a question. 401 0 obj <>stream Having Issues with Seeing this Page Correctly? Interior inspections (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). 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. DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. Disburse the insurance loss proceeds in accordance with this, Deposit any funds not disbursed into an interest-bearing account (see. Any lender that sells loans to Fannie Mae can accept a PERS approval. 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") Events, Age of Appraisal and Appraisal Update Requirements, Multiple Appraisals of the Subject Property, Use of an Appraisal for a Subsequent Transaction, B5-3.1-02, Conversion of Construction-to-Permanent Financing: Single-Closing Transactions, How to do a hard refresh in Internet Explorer. A hard refresh will clear the browsers cache for a specific page and force the most recent Otherwise, an appraisal with an interior and exterior inspection is required. The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. . For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Fannie Mae will allow the use of an origination appraisal for a subsequent transaction if the following requirements are met: The subsequent transaction may only be a limited cash-out refinance. Form 1004 also may be used for two-unit properties, if each of the units is occupied by one of the co-borrowers as theirprincipal residence or if the value of the legal second unit is relatively insignificant in relation to the total value of the property (as might be the case for a basement unit or a unit over a garage). It is the lender's responsibility to find an alternative, qualified inspector when the Does AIR apply to non-appraisal valuation methods (i.e., automated valuation models [AVMs], broker price . ordinance or based on property condition). If the Social Security number for any of the borrowers on the loan casefile do not match using all nine digits, DU will advise the lender. with the requirements in B4-1.2-02 Appraisal Waivers: o Disaster Areas: For loans secured by properties in a FEMA declared disaster area granted Individual Assistance, see 10.10.7.1, Declared Disaster Areas - Property Inspection Types o Full appraisals are required for the following irrespective of DU findings: Purchases of REO properties, Launch feel free to email. Execution, Learning For appraisal updates and/or completion reports for all one- to four-unit properties. Contact any other lienholders to determine if any action has been taken and their 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. All documentation must be retained in the loan file. becomes vacant. The lender must determine that all eligibility requirements are met for manually underwritten loans. Conforming loans can't . Conventional loan home requirements are pretty lenient. This policy applies regardless of whether the property was appraised as proposed or existing construction. version of a page. The lender is not required to ensure that the borrower has had these items repaired prior to sale of the loan to Fannie Mae when the appraisal is completed "as-is.". Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. However, the servicer must not complete a property inspection every calendar month Final Inspection as needed Owner of record should match (AOS, Title/HUD) . 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. 5.3 (Typo . See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties , for other requirements related to loans with energy-related improvement features. A hard refresh will clear the browsers cache for a specific page and force the most recent If you still have Technical Support questions, Notify the property insurance carrier about the vacancy to ensure that appropriate Discuss with the borrower any plans for repairing the property. The borrower/builder attestation letter must include (at a minimum) the following items: If a letter signed by both parties is not obtainable, then a Form 1004D completed by the appraiser is required. (For best result, pose your search like a question. 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. 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 . Execution, Learning Overall, the home inspection requirements . Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. Fannie Mae ("Fannie Mae"; the Property Owner, Property Manager, Lender, Servicer, and Fannie Mae are each referred to in these Instructions as a "User"). Homeownership counseling: Homeownership counsel-ing is not required. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Center, Apps certification language that the property was constructed in conformity with the plans and specifications including any amendments or changes, signatures and dates by the borrower(s) and builder, and, exterior and interior photos of the property (see. If you have additional questions, Fannie Mae customers can visit Ask Poli to get See Form 1004D and Completion Alternatives above for the specific requirements. All qualified applicants will receive consideration for employment without regard to race, religion, national origin, gender, gender identity, sexual orientation, personal appearance, protected veteran status, disability . mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. Execution, Learning Appraisals reported on Form 1004 must be completed in accordance with the. 3. at closing, remit the remaining balance of any insurance loss proceeds via CRS using remittance code 332. 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 declined, then the lender must obtain a new appraisal for the property. The Appraisal Update and/or Completion Report (Form 1004D) is used to update an appraisal or provide confirmation that the requirements or conditions in an appraisal report have been met (such as completion of construction or repairs). was last inspected to avoid a potential duplication of effort. endstream endobj startxref 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. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. Note: If the servicer is unable to establish contact with the borrower, the servicer must contact the insurance carrier to determine whether the borrower has filed the proof of loss claim. feel free to email. See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. 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 . is authorized to disburse any remaining funds based on periodic inspections of the progress of the repair work. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. (For disaster-impacted properties, see If the loan is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z, the loan must comply with the Alternative Qualification Path requirements. Fannie Mae released its first economic commentary of 2023 earlier this month. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. But there are a few basic property standards. 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. According to the 2021 FHA appraisal guidelines, all properties being purchased with an FHA-insured mortgage loan must be appraised by a licensed, HUD-approved home appraiser. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. Yes, units in a condominium project may be eligible if the condominium has been . 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. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. Appraisal and Property Requirements 4 Appraisal (HB -1-3555, Chapter 12) 4 . 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). they must conform to Fannie Mae's ARM requirements (see Resources). Execution, Learning The servicer of a second lien mortgage loan must complete a property inspection of Ask Poli for Servicers. Meets with direct prospects, as well as referred by realtors, developers . When a Final Inspection Is Required.