Photo Requirements Use only clear, focused, color photos. The lender must determine if repairs are required as a result of the inspection, verification per above requirements. All completion documentation must include one or more visually verifiable exhibits. at closing, remit the remaining balance of any insurance loss proceeds via CRS using remittance code 332. remit the remaining balance of any insurance loss proceeds the servicer is maintaining on a mortgage loan within 30 days of confirming the REOgram via CRS using remittance code 332, and. Center, Apps version of a page. frequent property inspections when necessary (for example, when required by local We recommend that you use the latest version of FireFox or Chrome. 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. an MBS mortgage loan serviced under the special servicing option. 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. whether or not a final decision has been reached with respect to the review. 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 . A hard refresh will clear the browsers cache for a specific page and force the most recent If you have additional questions, Fannie Mae customers can visit Ask Poli to get Any lender that sells loans to Fannie Mae can accept a PERS approval. Note: Interior photographs on proposed or under construction properties may be taken at the time of the completion inspection and included with Form 1004D. The servicer must remit insurance loss proceeds to Fannie Mae depending upon the circumstance of the mortgage loan, as outlined in the following table. Criteria for Use of Form 1004D and Completion Alternatives. Theinspection and results of the appraisal update must be reported on the Appraisal Update and/or Completion Report (Form 1004D). Yield interest equivalent to the interest the borrower could expect to obtain from a savings or money market account. At a minimum, the appraiser must complete the following steps: Visually inspect the subject property both inside and out. feel free to email. 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. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. foreclosure sale, or in applicable foreclosure actions where there is no foreclosure Requirements for HomeStyle Energy Improvements on Existing Construction. including loan amount limits and credit score requirements. If you have additional questions, Fannie Mae customers can visit Ask Poli to get bankruptcy, or. There is no minimum credit score requirement except for loans underwritten under the Alternative Qualification Path. A hard refresh will clear the browsers cache for a specific page and force the most recent Visit Selling and Servicing Guide Communications and Forms. The PCA provides: an assessment of the Property's current physical condition; If the servicer conducts and securing delinquent mortgage loans set forth in, How to do a hard refresh in Internet Explorer. the property securing the mortgage loan by the earlier of. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. But there are a few basic property standards. Execution, Learning Note: The appraisal must comply with all other requirements in the Underwriting Property section of the Selling Guide. 12/21/15 1.3 Revised the FHA Streamline Re-Inspections requirement Otherwise, an appraisal with an interior and exterior inspection is required. When a property inspection is required every calendar month, the property inspections F-1-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement. See Visit Selling and Servicing Guide Communications and Forms. DU is unable to determine if a loan casefile is a higher-priced mortgage loan or a higher-priced covered transaction under Regulation Z. Fannie Mae released its first economic commentary of 2023 earlier this month. See 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). an interior inspection every calendar month until the foreclosure sale date, or in This may include but is not limited to foundation settlement, water seepage, active roof leaks, worn roof shingles, inadequate electrical service or plumbing fixtures, etc. was last inspected to avoid a potential duplication of effort. Ask Poli features exclusive Q&As and moreplus official Selling & Servicing Guide content. ), 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, Research Photos must remain clear at a dimension of 3 " x 5". (These requirements are not applicable when energy improvements are included in HomeStyle Renovation loan). Homeownership counseling: Homeownership counsel-ing is not required. 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. 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. Once the property has been fixed, a final inspection will take place to verify that the work has been completed. an effort undertaken jointly by Freddie Mac and Fannie Mae at the direction of the Federal Housing Finance Agency. 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. submit the appraisal selected by the lender through the UCDP prior to delivery. for any exception in the mortgage loan file. it must contact the first lien mortgage loan servicer to determine when the property 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. Appraisals reported on Form 1004 Desktop must be completed in accordance with the UAD Specification. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. Obtain complete details on the damage to the property and determine the needed repairs. Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. For traditional appraisals of two- to four-unit properties (including two- to four-unit properties in PUD, condo, or co-op projects) based on interior and exterior property inspections. Clearly identify the repairs that are being documented and confirm the repairs, How to do a hard refresh in Internet Explorer. Fannie Mae also permits other completion alternative methods - attestation letters - to verify completion of construction, alteration, or repairs in lieu of Form 1004D. . 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. provide. Ask Poli for Servicers. Single-Family Comparable Rent Schedule (Form 1007), Required if the property is a one-unit investment property and the borrower is using rental income to qualify. sale and title is transferred by court order, the estimated court order docket date When a property securing a mortgage loan experiences an insured loss, the servicer must ensure the proof of loss claim is filed within the time period specified in the insurance policy and monitor the disbursement of insurance loss proceeds (see Disbursing Insurance Loss Proceeds Based on the Mortgage Loan Status and the Borrowers Intent for additional information). When the effective date of the original appraisal report is more than four months but less than 12 months from the date of the note and mortgage,the appraiser must perform an appraisal update that includes inspecting the exterior of the property and reviewing current market data to determine whether the property has declined in value since the date of the original appraisal report. Read court documents, court records online and search Trellis.law comprehensive legal database for any state court documents. were completed in accordance with the insurance adjusters itemized estimate and the repair plan, and. Borrower/builder attestation letter: For new or proposed construction, a letter is permitted to confirm the property was completed and constructed in conformity with the plans and specifications, amendments, and change orders. 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. . Get answers to your Selling Guide & policy questions with Fannie Mae's AI-powered search tool. Freddie Mac. Events, Employment, Income, and Asset Verification, B5-7-03, High LTV Refinance Alternative Qualification Path, B3-3.1-06, Requirements and Uses of IRS IVES Request for Transcript of Tax Return Form 4506-C, To be eligible for the high LTV refinance option, the payment history for the existing loan for the most recent 12 months must reflect. or. (For best result, pose your search like a question. When expanded it provides a list of search options that will switch the search inputs to match the current selection. Receipts are not necessary if the loss proceeds are less than or equal to $40,000. F-4-02, List of Contacts). A map showing the location of the subject property and the comparables that the appraiser used. 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. loan must take depending on the borrowers action. 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. 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. Visit Selling and Servicing Guide Communications and Forms. Minor conditions and deferred maintenance items include, but are not limited to, worn floor finishes or carpet, minor plumbing leaks, holes in window screens, missing handrails, or cracked window glass and are typically due to normal wear and tear. Access forms, announcements, lender letters, legal documents, and more to stay current on our selling policies. A form of homeownership that combines individual ownership of a unit with shared ownership of common facilities. When the lender is required by law to obtain an appraisal, the lender must comply with such requirements, but may still exercise the offer. For a comprehensive list of resources such as access forms, announcements, lender letters, notices and more. 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. and complete the property inspection no later than the 120th day of delinquency for 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. they must conform to Fannie Mae's ARM requirements (see Resources). 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. A hard refresh will clear the browsers cache for a specific page and force the most recent 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.