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. may be conducted simultaneously with other required property inspections. 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. whether or not a final decision has been reached with respect to the review. to maintain the property and take the action described in the following table depending is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, Note: Required for case numbers . Notice of Filing - AFFIDAVIT OF COSTS; AFFIDAVIT IN SUPPORT OF MOT FOR FINAL JGMT OF DEFICIENCY & AFFIDAVIT OF APPRISERParty: Plaintiff Dyck-O'Neal, Inc April 18, 2017. 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. General Information 2. paid invoices for the alterations or repairs. mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. 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's project approval process is accepted by many institutional investors. 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. version of a page. 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. (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). 209.04 Additional Requirements for Monthly Remittance for Security Transactions. We continue to respond and work with our lenders and servicers to assist homeowners impacted by the recent hurricanes. occupied (whether by borrower(s), tenant(s), or unknown occupant(s)). QRPC has been established within the last 30 days. D2-2-01, Achieving Quality Right Party Contact with a Borrower, has been established. Promoted to Senior Vice President October 2015 with exposure leading several groups including Mortgage Credit Policy Committee, Quality . to be vacant becomes occupied, a new signed inspection report is required if the property provide. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. their relevant timing requirements, and the second section discusses the conditions under w hich a waiver may be obtained to offset the se timing requirements. An elected board of directors is responsible for operations and management . in months 7-12, no more than one, 30-day delinquency and no delinquency greater than 30 days. 30UL Hna`@,v?,A .mxC3k00?xg>bb8"D+,,S 7 L@h_- e?` 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. The servicer must take the steps shown in the following table to obtain reimbursement of HOA assessments and related expenses. Execution, Learning agrees to arrange for the necessary repairs. Disburse the insurance loss proceeds in accordance with this, Deposit any funds not disbursed into an interest-bearing account (see. The loan file must include the final UCDP Submission Summary Report (SSR) from each agency regardless of the final Document File Status. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. 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. 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. However, the servicer must complete more frequent property . & Insights, Pricing & Step. For traditional appraisals of one-unit properties in co-op projects based on interior and exterior property inspections. Requirements for HomeStyle Energy Improvements on Existing Construction. must follow up until the repairs have been completed. Conforming loans can't . Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. Otherwise, an appraisal with an interior and exterior inspection is required. Form. Note: The servicer and/or the insurance company may not have reason to believe that a supplemental claim will be filed for additional damages at the time the initial loss proceeds are paid by the insurer; therefore, the servicer must disburse any insurance loss proceeds based on the requirements in this Guide without regard to whether supplemental loss proceeds will be received. McLean, Virginia, United States. the property, the servicer must contact its Fannie Mae Servicing Representative (see Completion must be confirmed using Form 1004D or an acceptable completion alternative as described above. 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. Proper inspection training is a key component . The following table provides references to Announcements that are related to this topic. for any exception in the mortgage loan file. topic. 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. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. 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. All documentation must be retained in the loan file. Make immediate arrangements to protect the property from vandalism and the elements 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 Complete the foreclosure sale or acceptance of the Mortgage Release. A hard refresh will clear the browsers cache for a specific page and force the most recent Yes. However, lenders are not required to comply with the waiting period and re-establishment of credit requirements for significant derogatory credit events or the payoff or satisfaction of a judgment identified on the credit report. Freddie Mac. . The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. See Gross Living Area in B4-1.3-05, Improvements Section of the Appraisal Report for additional information. The table below provides the postponed improvement requirements for a HomeStyle Energy loan. The sketch must include the subject's exterior footprint with dimensions. The table below provides references to recently issued Announcements that are related to this topic. Fannie Mae is an Equal Opportunity Employer, which means we are committed to fostering a diverse and inclusive workplace. Access forms, announcements, lender letters, notices, and more to stay current on our servicing policies. 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 . 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). Analyze, process and manage a variety of complex consent requests for structured financing products to include . 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. & Technology, News & For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Freddie Mac Form 442 March 2005 Page 1 of 1 Fannie Mae Form 1004D March 2005 . (For best result, pose your search like a question. Repairs to a property damaged as the result of a disaster (as defined by this Selling Guide) are not required prior to loan sale as long as the loan meets the applicable property insurance requirements. D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower). When a property inspection is required every calendar month, the property inspections must occur between 20 and 35 days apart. The servicer must use a Property Inspection Report (Form 30) or its own form that provides equivalent information to document the property inspection. information from other Fannie Mae published sources. Lenders must review the appraisal to ensure that the property does not have minor conditions or deferred maintenance items that affect the safety, soundness, or structural integrity of the subject property. Items meeting these criteria require the appraiser to report and comment on the effect these items may have on the subject property's value and marketability. review the inspection report to verify the property condition. Contact any other lienholders to determine if any action has been taken and their If you have additional questions, Fannie Mae customers can visit Ask Poli to get listed in the following table. The MarketWatch News Department was not involved in the creation of this content. Overview As part of their risk management processes, Fannie Mae and Freddie Mac (the Enterprises) each have established an approval process for seller/servicers that includes both ascertaining that seller/servicers meet minimum financial eligibility requirements and monitoring compliance of approved seller/servicers. The appraiser may not make changes or deletions to the existing certifications; however, the appraiser may make additional certifications that can be included on a separate page or form. The borrower and the lender/client must be the same on the original and subsequent transaction. The following table provides underwriting and documentation requirements applicable to high LTV refinance loans. Visit Selling and Servicing Guide Communications and Forms. Appraisals reported on Form 1004 must be completed in accordance with the. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. the offer is not more than four months old on the date of the note and the mortgage. hb```@(1Aag?|\9)GVukvDKw9^]_oquC_)/:PLa\Tr;pC{9&>``h``0 `A8 and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. Visit Selling and Servicing Guide Communications and Forms. If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. represents and warrants compliance with all of the Fannie Mae Selling Guide requirements, including compliance with AIR. The appraisal update must occur within four months prior tothe date of the note and mortgage. 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. ordinance or based on property condition). When a Final Inspection Is Required. repairs made. Each Fannie Mae appraisal report form includes an appraisers certification (and, if applicable, a supervisory appraisers certification) and a statement of assumptions and limiting conditions. Immediately issue the borrower a check for any amount designated for contents (for example personal property) or living expenses. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. 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. 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 following table provides a list of the servicers responsibilities when there is an insurable loss on a property securing a mortgage loan and the property can be legally rebuilt. & Technology, News & The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. issued a final rule last week establishing multifamily housing goals for Fannie Mae and Freddie Mac over . Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. The letter and all documentation must be retained in the loan file. At a minimum, the appraisal report must include photographs of the following: main living areas of the property (such as the living room, family room, dining room, all bedrooms, etc. The subject and all comparables must be appropriately identified. ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research F-4-02, List of Contacts). If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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 . Receipts are not necessary if the loss proceeds are less than or equal to $40,000. Oct 2011 - Jan 20208 years 4 months. If you still have Technical Support questions, endstream endobj 366 0 obj <. feel free to email. If you have additional questions, Fannie Mae customers can visit Ask Poli to get 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. Appraisers may not add limiting conditions. Revised the General Inspection Requirements section to align with the appraiser requirements stated in the Appraisal Management Policy. The servicer must follow the procedures in General Expense Reimbursement Requirements in 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. Before the servicer of a second lien mortgage loan conducts a property inspection, examples of recent updates, such as restoration, remodeling, and renovation, if present. 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. documentation of liquid financial reserves equal to 12 months of the new monthly housing payment. Monitor and inspect repairs as completed to verify the repairs comply with the final repair plan. and Property Preservation Expenses in a final appraisal inspection, updates the title policy, and obtains a signed completion certificate, which the lender gives to Fannie Mae to have the bankruptcy, or. For non-routine litigation matters, These requirements also apply if the lender considers an appraisal to be deficient (see B4-1.3-12, Quality Assurance). The lender must determine if repairs are required as a result of the inspection, verification per above requirements. or. the servicer must notify Fannie Maes Legal Department by submitting a, is or becomes delinquent and the servicer determines the property is vacant, follow the requirements for inspecting, securing, and repairing vacant properties By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. Interior inspections The following table provides a list of account requirements. 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. feel free to email. The value of sweat equity and Do It Yourself improvements are not reimbursable. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. 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. Lenders exercising the high LTV refinance value acceptance (appraisal waiver) must deliver Special Feature Code 807 or 774 for value acceptance + property data. 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. 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. Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. property inspection reports, . as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, ), Selling, Securitizing, and Delivering Loans, Chapter B4-1: Property Assessment and Valuation, Research 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: See Establishing Written Policies or Procedures in A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements and A4-1-02, Establishing Custodial Bank Accounts for additional details, including requirements for addressing unapplied funds held in the T&I custodial account and for reporting the status of funds in the custodial account to Fannie Mae. Otherwise, an appraisal with an interior and exterior inspection is required. feel free to email, the property is borrower/tenant occupied, and. an interior inspection every calendar month until the foreclosure sale date, or in such as legal action, to have emergency repairs made. The servicer must order a property inspection on or after the 90th day of delinquency Center, Apps