During a Reinspection You Must Reinspect the Entire Occupancy Again

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D2-2-10: Requirements for Performing Property Inspections (11/17/2021)

Introduction

This topic contains the following:

• Inspecting a Property Securing a Delinquent Mortgage Loan
• Inspecting and Repairing a Property in Disrepair
• Inspecting and Protecting a Vacant or Abased Property

Inspecting a Property Securing a Delinquent Mortgage Loan

The servicer must society a property inspection on or subsequently the 90th day of delinquency and complete the property inspection no later than the 120th day of delinquency for all delinquent mortgage loans and keep inspecting every calendar month as long equally the mortgage loan remains 90 or more days runaway until the foreclosure sale, the execution of a Mortgage Release, or the mortgage loan becomes current unless otherwise noted in this Servicing Guide.

All the same, the servicer must not complete a belongings inspection every calendar month when the mortgage loan is 90 or more days runaway if

• the property is borrower/tenant occupied, and
• one of the following has occurred:
  • QRPC has been established within the concluding 30 days,
  • a total payment has been received within the final xxx days,
  • a workout option has been canonical and the borrower is performing under the program, or
  • the borrower is performing under the applicable bankruptcy plan.

The servicer must employ a Property Inspection Report (Class 30) or its own form that provides equivalent data to certificate the property inspection. When a property inspection is required every calendar calendar month, the property inspections must occur between xx and 35 days apart. However, the servicer must consummate more frequent property inspections when necessary (for instance, when required by local ordinance or based on property status). If extenuating circumstances cause inspection delays, the servicer must document efforts to conduct timely inspection and the reason for whatsoever exception in the mortgage loan file.

The servicer must complete a last holding inspection inside 35 days prior to the foreclosure auction, or in applicable foreclosure deportment where in that location is no foreclosure sale and title is transferred by court order, the estimated court gild docket date (if known). Meet E-three.3-03, Inspecting Properties Prior to Foreclosure Sale for additional information.

The following table outlines the type of inspection the servicer must perform depending on the occupancy condition.

If...	Then the servicer must consummate...
the property is vacant or abased	an interior inspection equally allowed by applicable law
the occupancy condition of the property is unknown, or occupied (whether by borrower(s), tenant(due south), or unknown occupant(s))	an exterior inspection

The servicer is authorized to consider a curbside (bulldoze-by) inspection every bit an outside inspection only in the following circumstances:

• if there are legal constraints due to compliance with applicable law including active bankruptcy, or
• if there is potential danger to the inspector.

The servicer must maintain and make any checklists or other documentation relied upon to make up one's mind the occupancy status of a belongings available to Fannie Mae upon request. Fannie Mae reserves the correct to crave

• revisions to the checklists,

• the use of a prescribed class of checklist, or

• affidavits of vacancy where necessary or appropriate to evidence the vacancy status.

See  A4-two.1-02, Property Inspection Vendor Management and Oversight for information on property inspection vendor management.

The servicer must follow the procedures in Reimbursement for Property Inspections and Holding Preservation Expenses in  F-ane-05, Expense Reimbursement for requesting reimbursement of property inspection fees.

The servicer of a second lien mortgage loan must complete a holding inspection of the belongings securing the mortgage loan by the before of

• the date that information technology initiates foreclosure proceedings, or
• the 120th twenty-four hour period of delinquency.

Inspecting and Repairing a Property in Busted

When the servicer learns of any condition detrimental to the value of the property or the need for urgent repairs, the servicer must remind the borrower of their obligation to maintain the belongings and accept the action described in the following table depending on the borrower'southward action. (For disaster-impacted properties, run across D1-3-01, Evaluating the Impact of a Disaster Event and Assisting a Borrower).

If the borrower...	Then the servicer...
agrees to arrange for the necessary repairs and has the financial resources to do and so	must follow up until the repairs have been completed.
is willing to make the repairs, but is unable to practise then	is authorized to ask Fannie Mae to accelerate the necessary funds by requesting expense reimbursement if the mortgage loan is either a whole mortgage loan, a participation pool mortgage loan, or an MBS mortgage loan serviced under the special servicing option. Annotation: Advisable arrangements should be made for the borrower to repay the advance.
refuses to make repairs of an emergency nature or to permit the servicer to accept such repairs made	must adhere to the following requirements.
	If the mortgage loan...	Then the servicer must...
	is current and/or the property is occupied	determine if inspections are necessary and whether it should pursue other actions, such as legal action, to take emergency repairs made. For non-routine litigation matters, the servicer must notify Fannie Mae's Legal Department by submitting a Non-Routine Litigation Form (Course 20).
	is or becomes delinquent and the servicer determines the property is vacant	follow the requirements for inspecting, securing, and repairing vacant backdrop and securing delinquent mortgage loans fix forth in Inspecting and Protecting a Vacant or Abased Property and the Belongings Preservation Matrix and Reference Guide.

Before the servicer of a second lien mortgage loan conducts a property inspection, it must contact the first lien mortgage loan servicer to determine when the belongings was terminal inspected to avoid a potential duplication of endeavour. If the servicer conducts a property inspection, it must notify the first lien mortgage loan servicer of the results of the property inspection and the borrower's plans regarding any needed repairs. The following tabular array describes the action that the servicer of a second lien mortgage loan must accept depending on the borrower's activity.

If the borrower...	So the servicer...
agrees to arrange for the necessary repairs	must follow up until the repairs have been completed.
refuses to make the necessary repairs	must determine what action the first lien mortgage loan servicer intends to take. If the first lien mortgage loan servicer does non intend to take whatever action to repair the belongings, the servicer must contact its Fannie Mae Servicing Representative (see F-4-02, List of Contacts).

The servicer must follow the procedures in General Expense Reimbursement Requirements in  F-ane-05, Expense Reimbursement for advancing funds to make repairs and requesting reimbursement.

Inspecting and Protecting a Vacant or Abandoned Holding

The servicer must audit a holding every bit shortly equally possible afterward it becomes enlightened of the possibility that the property may be vacant or abandoned.

When the servicer determines the property is vacant, the servicer must take the deportment listed in the following table.

✓	The servicer must...
	Make immediate arrangements to protect the property from vandalism and the elements to the extent that local laws allow such action. Run across Overview of General Servicer Duties and Responsibilities in A2-one-01, General Servicer Duties and Responsibilities and the Property Preservation Matrix and Reference Guide for additional information.
	Endeavor to locate the borrower to determine the reason for the vacancy.
	Contact whatsoever other lienholders to make up one's mind if whatsoever action has been taken and their intentions.
	Notify the property insurance carrier most the vacancy to ensure that appropriate insurance coverage is being maintained.

The following table describes the servicer's next steps depending on the mortgage loan condition if the property inspection confirms that the holding is vacant.

If the property inspection confirms that the property is vacant and the mortgage loan is...	Then the servicer must...
delinquent	complete a belongings inspection every agenda month as long as the mortgage loan remains xc or more days delinquent without regard to whether QRPC, every bit described in D2-2-01, Achieving Quality Right Political party Contact with a Borrower, has been established.
not delinquent	summarize its attempts to locate the borrower and its discussions with any other lienholders and submit a recommendation for farther activeness to its Fannie Mae Servicing Representative (see  F-4-02, Listing of Contacts).

The servicer must obtain a signed copy of the inspection study that first reported the vacancy, in which the person who completed the inspection certifies that they personally went to the property location and that the holding is vacant.

An electronic signature is acceptable when obtaining a signed copy of the inspection report. Encounter Selling Guide A2-4.1-03, Electronic Records, Signatures, and Transactions for additional data.

If a belongings is subsequently inspected and remains vacant, the continued vacancy condition must exist documented on the checklist or other document evidencing notes of the inspection, just no boosted signature is required. If a property previously reported to be vacant becomes occupied, a new signed inspection study is required if the belongings becomes vacant.

In one case the servicer has confirmed the belongings is abased, the servicer must consummate an interior inspection every calendar month until the foreclosure auction date, or in applicative foreclosure actions where there is no foreclosure sale and championship is transferred past courtroom order, the date the court's gild is entered on the docket. Interior inspections may be conducted simultaneously with other required belongings inspections.

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Source: https://servicing-guide.fanniemae.com/THE-SERVICING-GUIDE/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/1042371021/D2-2-10-Requirements-for-Performing-Property-Inspections-04-10-2019.htm

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