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. be accompanied by photographs of the completed improvements. 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. 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. information from other Fannie Mae published sources. Homeownership counseling: Homeownership counsel-ing is not required. Borrower attestation letter: A letter is permitted to confirm completion of certain alterations or repairs for existing construction. At a minimum, the appraisal report must include photographs of the following: main living areas of the property (such as living room, family room, dining room, all bedrooms, etc. 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. For traditional appraisals of one-unit properties in condo projects based on interior and exterior property inspections. copies of the appraisals and other written valuations to the applicants . Please refer to Supplement 20-14 to the Fannie Mae Multifamily Selling and Servicing Guide for additional detail. 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. 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 Maes lien. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. The appraiser can complete the Completion Report section of Form 1004D based on an on-site visual inspection of the property. Disburse the insurance loss proceeds in accordance with this, Deposit any funds not disbursed into an interest-bearing account (see. The extent of the appraisers data collection, analysis, and reporting must be determined by the complexity of the appraisal assignment. The borrower and the lender/client must be the same on the original and subsequent transaction. 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 . Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. & Insights, Pricing & applicable law allows for the accumulated interest to be applied to the UPB. Contact any other lienholders to determine if any action has been taken and their The table below provides the postponed improvement requirements for a HomeStyle Energy loan. The following table outlines the type of inspection the servicer must perform depending 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. Loan-level price adjustments: . The following table describes the action that the servicer of a second lien mortgage version of a page. 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 sketch must include the subject's exterior footprint with dimensions. 214.03 B Fannie Mae Will Not Confirm Nor Is Responsible for Amounts Owing to Servicer. Once a certificate of completion is obtained, the lender must release the final draw from the escrow account, which should include any funds in excess of the amount needed to pay for completion of the postponed items. The Rule requires that creditors . 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. The table below provides references to recently issued Announcements that are related to this topic. %PDF-1.6 % 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 servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. For manually underwritten loans, an appraisal with an interior and exterior inspection is required. and complete the property inspection no later than the 120th day of delinquency for Having Issues with Seeing this Page Correctly? The following table provides references to Announcements that are related to this topic. 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. (For best result, pose your search like a question. 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement How to do a hard refresh in Internet Explorer. Otherwise, an appraisal with an interior and exterior inspection is required. The table below provides references to recently issued Announcements that are related to this topic. In addition, a separate footprint sketch including dimensions must be provided for each additional structure with room labels, when applicable. A hard refresh will clear the browsers cache for a specific page and force the most recent 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. This policy applies regardless of whether the property was appraised as proposed or existing construction. Ensure that the borrower is not involved in or party to litigation other than foreclosure or bankruptcy involving the subject property or mortgage loan. The servicer must use a Property Inspection Report ( Form 30) or its own form that provides equivalent information to document the property inspection. 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). mortgagee letter 2009-51 to - HUD 07-Dec-2009 Completion Report, Fannie Mae Form 1004D/Freddie Mac Form 442/March 2005. 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. must occur between 20 and 35 days apart. The servicer must follow the procedures in General Expense Reimbursement Requirements in noted in this Servicing Guide. Submit a Report of Property Insurance Loss (Form 176) to Fannie Maes SF CPM division (see F-4-02, List of Contacts within five business days of the servicer receiving notification of the damages. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. These exhibits must be unaltered and able to be authenticated using metadata and the geocode for the subject property. information from other Fannie Mae published sources. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). version of a page. & Insights, Pricing & Q23. This form is not designed to report an appraisal for a manufactured home, or for a unit in a condo or co-op project. Photo Requirements Use only clear, focused, color photos. Acceptable postponed items include items that will not prevent the issuance of an occupancy permit. 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. 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. Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. Be a T&I custodial account with a depository institution that meets Fannie Maes eligibility criteria for custodial depositories. Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. (For disaster-impacted properties, see F-4-02, List of Contacts). Mortgage Loans 31 Days or More Delinquent: The servicer must evaluate the borrower for a workout option in accordance with D2-3.1-01, Determining the Appropriate Workout Option and disburse the insurance loss proceeds as outlined in the following table. as the mortgage loan remains 90 or more days delinquent until the foreclosure sale, an MBS mortgage loan serviced under the special servicing option. Photographs of comparable rentals utilized in the Small Income Residential Appraisal Report (Form 1025) are not required. Execution, Learning 401 0 obj <>stream A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. See B5-3.3-01, HomeStyle Energy for Improvements on Existing Properties, for other requirements related to loans with energy-related improvement features. If you have additional questions, Fannie Mae customers can visit Ask Poli to get We recommend that you use the latest version of FireFox or Chrome. If the borrower has not filed the claim, the servicer must file a proof of loss claim under the standard mortgagee clause and collect the insurance loss proceeds on Fannie Mae's behalf. Notify the property insurance carrier about the vacancy to ensure that appropriate F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. The table below provides references to the Announcements that have been issued that are related to this topic. an interior inspection every calendar month until the foreclosure sale date, or in The following table provides references to Announcements that are related to this Events, Chapter B-5, Property and Flood Insurance Loss Events and Claim Settlements, Disbursing Insurance Loss Proceeds Based on the Mortgage Loan Status and the Borrower's Intent, Performing Remote Insured Loss Repair Inspections, Depositing the Insurance Loss Proceeds Not Disbursed, E-3.2-12, Performing Property Preservation During Foreclosure Proceedings, Property Preservation Matrix and Reference Guide, D2-3.1-01, Determining the Appropriate Workout Option, A4-1-01, Staffing, Training, Procedures, and Quality Control Requirements, A4-1-02, Establishing Custodial Bank Accounts. is current and/or the property is occupied, determine if inspections are necessary and whether it should pursue other actions, Obtain complete details on the damage to the property and determine the needed repairs. The request must include the mortgage loan and property information, a description of the specific damage or loss, details of the insurance claim, and a business justification for the request. If you have additional questions, Fannie Mae customers can visit Ask Poli to get may be conducted simultaneously with other required property inspections. 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. Refer to the "STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS" included in each Fannie Mae appraisal report to determine if a floor plan is required. In general, the home inspection requirements for Fannie Mae are meant to protect the borrower and the lender. All documentation must be retained in the loan file. If the lender obtains more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the lender must. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. It also helps to protect the lender's investment in the property. Note: Interior photographs on proposed or under construction properties . 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. Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. 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. 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. (For best result, pose your search like a question. 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. The MarketWatch News Department was not involved in the creation of this content. Center, Apps the possibility that the property may be vacant or abandoned. See Overview of General Servicer Duties and Responsibilities in See. use any insurance loss proceeds to reduce the outstanding mortgage loan debt. 1. Meets with direct prospects, as well as referred by realtors, developers . The appraiser may also complete the form based on alternative methods, such as virtual inspections, digital photos, site videos, or other technological solutions. However, the servicer must complete more frequent property . Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. Access 1. 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. The servicer of a second lien mortgage loan must complete a property inspection of & Technology, News & It led off by maintaining its forecast of a modest recession beginning in the first half of the year, despite signs of economic strength at the of last year. provide. 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. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. 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. Conventional loan home requirements are pretty lenient. Execution, Learning personally went to the property location and that the property is vacant. feel free to email. 209.04 Additional Requirements for Monthly Remittance for Security Transactions. Having Issues with Seeing this Page Correctly? When there are two borrowers on the new loan and two borrowers on the existing loan, but only one borrowers Social Security number matches, the DU message will specify that not all of the borrower Social Security numbers match and will require that the lender confirm the borrowers on the existing loan are the same borrowers that will be on the new loan. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. listed in the following table. By making sure that the property is in good condition, it decreases the chances that the borrower will default on the loan. Clear, descriptive color photographs showing the front, back, and a street scene of the subject property and the front of each comparable. Fannie Mae customers! Lenders must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlines in, Lenders must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlined in, Lender must ensure the escrow account is a custodial account that satisfies Fannie Maes criteria for custodial accounts and depositories as outlined in, How to do a hard refresh in Internet Explorer. Additional responsibilities depend upon whether the property can be legally rebuilt, as described in the following table. Get answers to your Servicing Guide & policy questions with Fannie Mae's AI-powered search tool. Final Inspection as needed Owner of record should match (AOS, Title/HUD) . if there are legal constraints due to compliance with applicable law including active submit the appraisal selected by the lender through the UCDP prior to delivery. ), 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 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. insurance coverage is being maintained. To request reimbursement, the servicer must follow the procedures in Reimbursement for Property Inspections and Property Preservation Expenses in F-1-05, Expense Reimbursement. 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. Overall, the home inspection requirements . 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. The following table provides a list of account requirements. When one borrower is on the new loan casefile but more than one borrower is on the existing loan, the DU message will state that it appears that a borrower is being removed with transaction and refer the lender to the Selling Guide for additional requirements on removing a borrower with a high LTV refinance transaction. After a satisfactory Form 1004D or completion alternative is obtained, the lender must release the final draw from the escrow account, which should include any funds in excess of the amount needed to pay for completion of the postponed items. Ask Poli for Servicers. Submit a request for expense reimbursement.