by usezloan | Aug 12, 2021 | Financial study
융자지식194- MANUFACTURED HOMES
MANUFACTURED HOMES
Flagstar Bank will only purchase loans secured by double-wide manufactured homes under fixed-rate
programs. Conventional transactions must be Fannie Mae eligible. Refer to the 9000 Government
Guidelines section for FHA and VHA transaction guidelines. Transactions must be rate/term refinances of
Flagstar Bank serviced loans.
Any dwelling-unit built on a permanent chassis and attached to a permanent foundation system is a
manufactured home for purposes of underwriting. Other factory-built housing, not built on a permanent
chassis, such as a modular, prefabricated, panelized, or sectional housing is not considered manufactured
housing and continues to be eligible.
Flagstar Bank specifies certain eligibility criteria that apply to any mortgage that is secured by a
manufactured home. The manufactured home unit must be permanently affixed to a foundation and must
assume the characteristics of site-built housing. The wheels, axles, and trailer hitches must be removed
when the unit is placed on its permanent site. All foundations, both perimeter and piers, must have footings
that are located below the frost line. If piers are used, they should be placed where the unit manufacturer
recommends. If state law requires anchors, they must be provided. Flagstar Bank will not purchase loans
secured to single-wide manufactured homes or manufactured homes located within a condominium project.
TRANSACTION REQUIREMENTS
The following criteria must be met:
• Loan must be a rate and term refinance of the Flagstar Bank serviced loan.
• Principal residences and Second Homes only, no investment properties.
• Subordinate financing is not permitted.
• All closing documents must be ordered through Flagstar Bank’s Web-Based Closing Documents
(WBCD) with a fully executed Manufactured Home Rider.
• All manufactured homes must be appraised by a Flagstar approved Appraisal Management
Company.
• Manufactured homes that have been deconstructed and moved to another property are not
eligible.
• See current rate sheet and/or Flagstar pricing engine for any additional adjustments to pricing.
Temporary buy-downs are not eligible.
APPRAISAL AND DOCUMENTATION REQUIREMENTS
A manufactured home must be a one-family dwelling-unit that assumes the characteristics of site-built
housing and is legally classified as real property. The purchase, conveyance and financing, or
refinancing, of the land and the manufactured home, which must be evidenced by a valid and
enforceable first lien mortgage or deed of trust that is recorded in the land records, must represent a
single real estate transaction under applicable state law. A combination chattel and real estate
mortgage is not acceptable.
Visit the Fannie Mae website, Titling Manufactured Housing for state-specific guidelines.
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The appraiser must state the subject property is taxed as Real Property or if the property is new
construction, the title company must supply a statement that the subject property will be taxed as Real
Property. An ALTA 7 endorsement, manufactured housing endorsement, must accompany all title work
for a manufactured home. This endorsement should ensure that the land described in the policy as the
insured property includes the manufactured housing-unit located on the land at the date of the policy.
Flagstar Bank underwriting department requires complete title work prior to closing to be reviewed by
Underwriting on all manufactured home transactions, in addition to a copy of the homeowners’
insurance policy showing the dwelling coverage equal to at least the mortgage balance or replacement
cost new generated by the appraiser.
ADDITIONAL WARRANTIES
• The financing must be evidenced by a mortgage or deed of trust recorded in the land records. A
combination of a chattel and real estate mortgage is not acceptable.
• The manufactured home must be built in compliance with the Federal Manufactured Home
Construction and Safety Standards that were established June 15, 1976, as amended and in
force at the time the home is manufactured, and that appear in HUD regulations 24 C.F.R. Part
3280. Compliance with these standards will be evidenced by the presence of a HUD Data Plate.
The HUD Data Plate/Compliance Certificate is a paper document located on the interior of the
subject property that contains, among other things, the manufacturer’s name and trade/model
number. In addition to the data required by Fannie Mae, the data plate includes pertinent
information about the unit including a list of factory-installed equipment. The HUD Certification
Label is a metal plate, sometimes referred to as a HUD seal or tag, located on the exterior of
each section of the home. Flagstar Bank will not accept any manufactured home built before
1976.
• The manufactured home must be permanently affixed to a foundation system that is appropriate
for soil conditions for the site and is designed to meet local and state codes.
• The manufactured home certificate of title must be surrendered in all non-title holding states.
For title holding states, the certificate of title must be perfected with Flagstar Bank as the sole
lien holder.
• The mortgage amount cannot include the financing of furniture, mortgage life insurance or any
other form of insurance, other than hazard, flood, mortgage, and title insurance. However, the
financing of kitchen and laundry appliances and carpeting may be included in the mortgage.
• The borrower must sign a written statement acknowledging his or her intent that the unit is a
fixture and part of the real property securing the mortgage.
• The manufactured home must be permanently connected to a septic tank or sewage system
and to other utilities in accordance with local and state requirements.
• Property is zoned 1 to 4-unit, residential
• The manufactured home is a structure that is built on a permanent chassis.
• The manufactured home must have a pitched roof with overhang. The roof covering must be
standard composition shingle, asphalt or fiberglass, or better.
• If the property is not situated on a publicly dedicated and maintained street, then it must be
situated on a street that is community owned and maintained street, then it must be situated on
a street that is community owned and maintain or privately owned and maintained. There must
be adequate vehicular access and there must be an adequate and legally enforceable
agreement for vehicular access and maintenance.
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• The appraiser must also include in the appraisal report the manufacturer’s name, the model
name, year of manufacture, and the serial number for the subject property. This information can
be verified by reviewing the Data Plate/Compliance Certificate that is located inside the
manufactured home.
• The appraiser must address both the marketability and comparability of a manufactured home
by using comparable sales of similar manufactured homes. If at least three comparable sales of
manufactured homes are not available, the appraiser may use either site-built housing or a
different type of factory-built housing as one of the comparable sales. When that is the case, the
appraiser must use at least two comparable sales of similar manufactured homes, explaining
why site-built housing or a different type of factory-built housing is being used for the one
comparable sale and make, and support, appropriate adjustments in the appraisal report. If the
appraiser is unable to fund two comparable sales of similar manufactured homes, the mortgage
is not eligible for delivery to us since the market value of the property cannot be adequately
measured and supported.
• The appraiser must not create comparable sales by combining vacant land sales with the
contract purchase price of a factory-built home, although this type of information may be
included as additional supporting documentation.
• The mortgage must be covered under a standard real estate title insurance policy that covers
the manufactured home as part of the real property that secures the mortgage. This is
evidenced by an ALTA 7 endorsement, or any other endorsements required in the applicable
jurisdiction for manufactured homes that are treated as real estate. A copy of the preliminary
title commitment must be reviewed by underwriting prior to closing.
• The appraisal must be performed on form 1004C. Form 70B is not acceptable.
• Mortgages secured by manufactured homes located on leasehold estates or condominium
projects are ineligible.
• The appraisal must contain at least two manufactured home comparables or else the loan is
ineligible.
• All loans must close with a fully executed Manufactured Home Rider.
• Loans requiring private mortgage Insurance must have a minimum of 900 square feet.
• Manufactured homes that require flood insurance must have a separate flood policy.
• Homeowner/Mobile policies that include flood under one policy are not acceptable under any
circumstances when flood insurance is required. This will not meet investor requirements of
NFIP Cancellation/Nullification Provisions. A separate flood policy is required.
• Manufactured homes in New Jersey constructed prior to 1985 are ineligible.
by usezloan | Aug 12, 2021 | Financial study
융자지식193- LEASEHOLDS
LEASEHOLDS
An attorney’s opinion letter stating all warranties are met will be required on all loans. Letter must specify
the investor under which the warranties have been validated; Fannie Mae, Freddie Mac, or preferably both
Fannie Mae and Freddie Mac. Documents affecting the leasehold estate, including a certified copy of the
lease, must be provided.
FANNIE MAE LEASEHOLD REQUIREMENTS
• Lender retains first-lien enforceability as part of the terms of the lease.
• The mortgage must be secured by the property improvements and the borrower’s leasehold
interest in the land.
• The leasehold estate and the improvements must constitute real property, must be subject to
the mortgage lien, and must be insured by the lender’s title policy.
• Properties held in Land Trusts are not eligible.
• The leasehold estate and the mortgage must not be impaired by any merger of title between the
lessor and lessee or by any default of a sub-lessor.
• The term of the leasehold estate must run for at least 5 years beyond the maturity date of the
mortgage, unless fee simple title will vest at an earlier date in the borrower’s name, home
owners association or a co-op corporation.
• All lease rents, other payments, or assessments that have come due must be paid.
• The borrower must not be in default under any other provision of the lease nor may such a
default have been claimed by the lessor.
• The lease must provide that the leasehold can be assigned, transferred, mortgaged, and sublet
an unlimited number of times by the lessee either without restriction or on payment of a
reasonable fee and delivery of reasonable documentation to the lessor.
• The lessor may not require a credit review or impose other qualifying criteria on any assignee,
transferee, mortgagee, or sub-lessee.
• The lease must provide for the borrower to retain voting rights in any homeowners’ association.
• The lease must provide that the borrower will pay taxes, insurance, and homeowners’
association dues related to the land in addition to those he or she is paying on the
improvements.
• The lease must be valid, in good standing, and in full force and effect in all respects.
• The lease must not include any default provisions that could give rise to forfeiture or termination
of the lease except for nonpayment of the lease rents.
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• The lease must include provisions to protect the mortgagee’s interests in the event of a property
condemnation.
• The lease must be serviced by either the lender that delivers the mortgage to Fannie Mae or the
servicer it designates to service the mortgage.
• The lease must provide lenders with the right to receive a minimum of 30 days’ notice of any
default by the borrower and the option to either cure the default or take over the borrower’s
rights under the lease.
• The lease may, but is not required to, include an option for the borrower to purchase the fee
interest in the land. If the option is included, the purchase must be at the borrower’s sole option,
and there can be no time limit within which the option must be exercised. If the option to
purchase the fee title is exercised, the mortgage must become a lien on the fee title with the
same degree of priority that it had on the leasehold. Both the lease and the option to purchase
must be assignable. The table below provides the requirements for establishing the purchase
price of the land.
Status of Property Improvements Purchase Price of Land
Already constructed at the time the lease is
executed.
The initial purchase price should be established as the
appraised value of the land on the date the lease is
executed.
Already constructed at the time the lease is
executed, and the lease is tied to an external
index, such as the Consumer Price Index (CPI).
The initial land rent should be established as a
percentage of the appraised value of the land on the
date that the lease is executed.
The purchase price may be adjusted annually during the
term of the lease to reflect the percentage increase or
decrease in the index from the preceding year. Leases
may be offered with or without a limitation on increases
or decreases in the rent payments.
Will be constructed after the lease is executed.
The purchase price of the land should be the lower of
the following:
• the current appraised value of the land, or
• the amount that results when the percentage of
the total original appraised value that
represented the land alone is applied to the
current appraised value of
the land and improvements.
For example, assume that the total original appraised
value for a property was $160,000, and the land alone
was valued at $40,000 (thus representing 25% of the
total appraised value). If the current appraised value is
$225,000, $50,000 for land and $175,000 for
improvements, the purchase price would be $50,000
(the current appraised value of the land, because it is
less than 25% of $225,000).
Note: If the lease is tied to an external index, the initial
land value may not exceed 40% of the combined
appraised value of the land and improvements.
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FREDDIE MAC LEASEHOLD REQUIREMENTS
• The Mortgage must be secured by a leasehold interest in the land where there is a
demonstrated market acceptance of this type of property ownership and the property
improvements to be a leasehold Mortgage.
• The leasehold estate and improvements must constitute real property including 1 to 4-unit
properties, planned unit developments and condominiums. A manufactured home is not eligible
to secure a Leasehold Mortgage
• Properties held in Land Trust are not eligible
• The leasehold estate must be covered by an acceptable title insurance policy.
• The lease and any sublease (including all amendments) are recorded in the appropriate land
records.
• The lease is in full force and effect and is binding and enforceable against the lessor (and
sublessor).
• The leasehold estate and Mortgage must not be impaired by any merger of the fee interest and
leasehold interest in the event the same person or entity acquires both interests.
• The term of the leasehold estate must run at least 5 years beyond the maturity date of the
Mortgage unless the fee simple vests at an earlier date
• All basic rent (amount paid for use of the leasehold estate under the terms of the lease or
sublease) and amounts due to taxes, insurance, utilities and use fees or operating expenses
relating to the land and improvements must be current and the borrower must not be in default
under any provision of the lease nor may the lessor have claimed such as default.
• The lease must not preclude the borrower from retaining voting rights in the home owner
association, if applicable.
Required Lease Provisions
• Permit mortgaging of the leasehold (or sub-leasehold) estate.
• Permit assignments of the leasehold (or sub-leasehold) estate, including any improvements
on the leasehold estate, including any improvements on the leasehold estate.
• Provide that in order for a notice of lessee’s default (monetary or non-monetary) to be valid,
the lessor must have sent written notice of the lessee’s default to the leasehold mortgagee
not more than 30 days after such default.
• Provide for the right of the leasehold mortgagee, in its sole discretion, to cure a default for
the lessee’s, or sub-lessee if applicable, account within the time permitted to lessee or take
over the rights under the lease (sublease).
• The lease cannot contain default provisions allowing forfeiture or termination of the lease for
nonmonetary default, except for nonpayment of the ground rent.
• The lease must provide for protection of the mortgagee’s interests including an insurable
interest in the subject property unless otherwise required by law, and interest in the lease,
ground lease community and leasehold estate.
• The lease may, but is not required to, include an option for the Borrower to purchase the fee
interest; provide, however, there is no time limit on when the option must be exercised, and
the lease and option to purchase must be assignable.
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LIFE ESTATES
Properties with Life Estate rights are not eligible. Any properties titled with these provisions must have the
rights removed prior to closing to be considered.
by usezloan | Aug 12, 2021 | Financial study
융자지식192- INELIGIBLE PROPERTIES
INELIGIBLE PROPERTIES
• Properties with more than 1 accessory unit (Granny Unit, In-Law unit, etc.)
• Vacant land or land development properties
• Properties that are not readily accessible by roads that meet local standards
• Income producing farms or ranches (Property must be residential in nature to be eligible)
• Units in condo or co-op hotels
• Boarding houses
• Bed and breakfast properties
• Properties that are not suitable for year-round occupancy regardless of location.
• Properties located on Indian/Native American Tribal Land
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• Properties located in Lava Zones 1 and 2
CHINESE DRYWALL
If Flagstar Bank is made aware that Chinese drywall is currently present or previously existed in the
home, we will not approve, fund, or purchase the loan, regardless of any drywall removal and/or efforts
to cure the damage.
Properties with Chinese Drywall may exhibit any of the following characteristics:
• Corrosion on metal fixtures, wires, or plumbing
• Sulfur odor in home
• Wall board with Made in China or Knauf markings
by usezloan | Aug 12, 2021 | Financial study
융자지식191- ENVIRONMENT HAZARD
ENVIRONMENT HAZARD
Environmental risk exposures are items such as gas tanks, railroad tracks, high tension wires, UFFI,
industrial areas, radon, mold, or any other risk exposure. We will only accept properties with the above
characteristics that meet the following requirements:
1. If a property inspection by the appraiser discloses a high potential for environmental risk, Flagstar
Bank may require a Phase I Environmental Risk Report before determining a property’s eligibility. A
loan is likely to be conditioned for a Phase I Environmental Risk Report if the following indicators
are present:
• Properties that include or are close to an existing or former gas site
• Properties that have served as or are close to a refuse or waste disposal site
• Properties where the past uses or the surrounding uses include the storage or usage of
hazardous or toxic substances
• Properties suspected of containing asbestos material that is or may be easily friable, easily
crumpled or crushed to powder and capable of being absorbed in the environment
• Properties where emanation of radon gas from the soil may result in detrimental health
effects to the building occupants
• Properties where there are known hazardous conditions on or in the property’s immediate
vicinity where Super Fund sites exist within a 1 mile radius; where the site is in close
proximity to oil and gas production; where there is asbestos within the building structure that
may have an effect on marketability; where the site is a corner lot property and is known to
have been previously used as a gas station locale; or where the historic use of the property
to its residential zoning is cause for concern.
• Properties that show evidence of mold must have the mold remediated by a certified firm.
After the mold has been remediated, a satisfactory inspection must be provided.
An approved environmental risk auditor must prepare the environmental risk report and Flagstar Bank must
show as the client on the risk report.
2. A property may not be approvable due to environmental factors including, but not limited to:
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• Presence of a sanitary landfill or other solid hazardous or municipal waste disposal site on
the property
• Presence of friable asbestos or substantial amount of non-friable asbestos on the property
• Evidence of spills or soil or ground water contamination on or around the property
• Radon levels above acceptable standards on the property that can only be corrected
through large capital improvements
• Conditions that represent violations of applicable local, state, or federal environmental or
public health statutes and laws on or near the property
• The property is currently the subject of environmental litigation or administrative action from
private parties or public officials or the property is on a federal, state, or local environmental
hazard list.
• There must not be any evidence of leakage on gas tank. If the property has a well, we will
require satisfactory well certification.
All comparables used should have same characteristics, i.e., gas tank, railroad tracks, etc. The appraiser
must state this is common to the area and has no adverse effect on marketability.
FREDDIE MAC HAZARDOUS SITE DISCLOSURE
Purchase transactions using LPA response requires a signed and dated Hazardous Site Disclosure,
Doc #3607 (or similar document), prior to close when the underwriter is made aware of hazardous
property information that may adversely affect the market value, condition, or marketability of the
subject based on the below requirements:
• Disclosure is required if the hazard has not already been disclosed through a purchase
agreement, property inspection or appraisal that would have already notified the borrower,
• The hazard includes, but is not limited to, the presence of any contaminate site, hazardous
substance or other environment condition affecting the subject property, and
• The hazardous site issue(s) has not yet been mitigated or remediated.
FLOOD INSURANCE
Refer to Flood Insurance, Doc. #4603 for additional information.
HAZARD INSURANCE
Refer to Hazard Insurance Requirements, Doc. #4602.
by usezloan | Aug 12, 2021 | Financial study
융자지식190- RESALE RESTRICTED PROPERTIES
RESALE RESTRICTED PROPERTIES
Deed restricted properties or resale restrictions are a right in perpetuity or for a certain number of years,
stated in the form of a restriction, easement, covenant, or condition in any deed, mortgage, ground lease
agreement, or other instrument executed by or on behalf of the owner of the land. Resale restrictions may
limit the use of all or part of the land to occupancy by persons or families of low-income or moderateincome or on the basis of age, senior communities must comply with applicable law, or may restrict the
resale price of the property to ensure its availability to future low-income and moderate-income borrowers.
The restricted resale price provides a subsidy to the homeowner, in an amount equal to the difference
between the sales price and the market value of the property without resale restrictions. The resale
restrictions are binding on current and subsequent property owners, and remain in effect until they are
formally removed or modified, or terminate in accordance with their terms, such as at a foreclosure sale or
upon acceptance of a deed-in-lieu of foreclosure.
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Flagstar Bank must review the terms and conditions of the resale restriction.
FANNIE MAE
Allowable Resale Restrictions
• Income limits
• Age-related requirements (senior communities must comply with applicable laws)
• Purchasers must be employed by the subsidy provider
• Principal residence requirements
• First-time home buyer requirements as designated by the subsidy provider
• Properties that are group homes or that are principally used to serve disabled residents
• Resale price limits
Eligible Subsidy Providers
Eligible subsidy providers, or sponsors, of resale restrictions must be:
• Nonprofit organizations
• Churches
• Employers
• Universities
• Municipalities (including state, county, or local housing agencies); or entities that are
otherwise administering government sponsored, federal, state, or local subsidy programs.
The subsidy provider must have established procedures for screening and processing applicants.
Eligible Borrowers for Affordability Related Deed Restrictions
Eligible borrowers must satisfy the specific eligibility criteria and resale restrictions established by
the subsidy provider. If the borrower income limits for the resale restrictions differ from the income
limits for Fannie Mae’s HomeReady mortgage loans and the borrower income limits for the
HomeReady mortgage loans are more restrictive, the HomeReady income limits apply.
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Loan Eligibility and Occupancy Types
Eligibility Based on Type of Deed Restriction
Affordable Age-Related
Transaction
Types Purchase and Refinance
Products Loans must be fixed-rate or adjustable-rate mortgages with an initial fixed period of five
years or more
Borrowers
Must meet applicable criteria of the deed restriction.
Age-related deed restrictions generally apply to the unit occupant and frequently require
only one occupant to be aged 55 and over. In such a case, the borrower could be younger
than 55 provided there is a unit occupant aged 55 and over. This occupant can be a nonborrower household member or a renter in the case of investment property.
(It is permissible for both affordable and age-related requirements to apply to a single loan.)
Occupancy Principal Residence Only All Occupancy Types
Properties
One- and two-unit properties, PUDs,
condos, and co-ops
Mortgages secured by manufactured homes
and three- and four-unit properties are not
eligible.
One- and two-unit properties, PUDs,
condos, and co-ops (second homes must be
one-unit properties)
Mortgages secured by manufactured homes
and three- and four-unit properties are not
eligible.
Default or Refinancing of Resale Restriction Loans
The subsidy provider may retain the right of first refusal or option to purchase a resale restricted
property when the borrower is in default or the property is in foreclosure.
The terms of the right of first refusal or option to purchase must be specified in the terms of the
resale restrictions.
The subsidy provider must exercise its right of first refusal or option to purchase within 90 days of
receiving notification of the borrower default or the property foreclosure.
The subsidy provider may permit borrowers to refinance their mortgage and take cash out of the
transaction. However, the resale restrictions may limit the cash-out amount in order to protect the
subsidy invested in the property. Lenders must document that the subsidy provider has approved
the refinance transaction and should ensure that the cash-out amount complies with the provisions
of the specific resale restrictions.
Duration of Resale Restrictions
Fannie Mae will purchase mortgages secured by properties subject to resale restrictions:
• When the restrictions terminate automatically upon foreclosure (or the expiration of any
applicable redemption period),
o Upon the recordation of a deed-in-lieu of foreclosure, or
o When the resale restrictions survive foreclosure.
There are no restrictions on the length of the period in which the resale restrictions may remain in
place on the property.
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If the resale restrictions survive foreclosure, the lender represents and warrants that the resale
restrictions do not impair the servicer’s ability to foreclose on the restricted property.
If the resale restrictions terminate at foreclosure, the subsidy provider is not entitled to obtain any
proceeds from future sale(s) or transfer(s) of the property after foreclosure or acceptance of a deedin-lieu of foreclosure.
If the resale restrictions survive foreclosure, the subsidy provider is not entitled to obtain any
proceeds from the initial sale or transfer of the property after foreclosure, from the foreclosing
mortgage holder who obtained the property at foreclosure or pursuant to a deed-in-lieu of
foreclosure.
Resale Restriction Appraisal Requirements
In cases where the resale restrictions terminate automatically upon foreclosure (or the expiration of
any applicable redemption period), or upon recordation of a deed-in-lieu of foreclosure, the
appraisal should reflect the market value of the property without resale restrictions.
The lender must ensure that the borrower and appraiser are aware of the resale restrictions and
should advise the appraiser that he or she must include the following statement in the appraisal
report:
• This appraisal is made on the basis of a hypothetical condition that the property rights being
appraised are without resale and other restrictions that are terminated automatically upon
the latter of foreclosure or the expiration of any applicable redemption period, or upon
recordation of a deed-in-lieu of foreclosure.
In cases where the resale restrictions survive foreclosure or deed-in-lieu of foreclosure, the
appraisal must reflect the impact the restrictions have on value and be supported by comparables
with similar restrictions.
The appraisal report must note the existence of the resale restrictions and comment on any impact
the resale restrictions have on the property’s value and marketability.
Title Requirements
The source and terms of the resale restrictions must be included in the public land records so that
they are readily identifiable in a routine title search.
Delivery of Mortgage Secured with a Resale Restrictions Survive at Foreclosure
A Special Feature Code (SFC) is used to identify a loan feature not defined by other attributes. If
the resale restriction will survive foreclosure, the following SFC must be associated to the loan.
SFC- 630 – Used to identify a mortgage secured by a property with resale restrictions that remain in
place or survive in the event of foreclosure or acceptance of a deed in lieu of foreclosure.
FREDDIE MAC
Length of Resale Restrictions; Effect of Foreclosure or Deed-in-lieu of Foreclosure
There are no restrictions on the length of the period in which the restrictions may remain in place on
the property. A mortgage secured by a property subject to a resale restriction is eligible for
purchase if the resale restriction:
• Survives foreclosure or completion of a deed-in-lieu of foreclosure, or
• Terminates upon foreclosure or completion of a deed-in-lieu of foreclosure.
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If the resale restrictions survive foreclosure or recordation of a deed-in-lieu of foreclosure, the
subsidy provider is not entitled to obtain any proceeds from the initial sale or transfer after
foreclosure or deed-in-lieu of foreclosure, from the foreclosing mortgage holder who obtained the
property.
Whether the resale restrictions survive or terminate upon foreclosure or recordation of a deed-inlieu of foreclosure, once Freddie Mac has acquired title to the property as an REO, the subsidy
provider is not entitled to obtain any “excess proceeds” from Freddie Mac’s sale or transfer of the
REO property except for mortgages secured by properties subject to income-based resale
restrictions, see below for tolerance.
Right of First Refusal
For properties subject to resale restrictions, there must be a right of first refusal which must run to:
• The enabling authority or jurisdiction that imposed the resale restrictions, or
• The subsidy provider or program administrator
With a time period not exceeding 120 days from the date of written notice to the parties that the
restricted property is being offered for sale.
Public Land Records
The terms of the resale restrictions must appear in the public land records for the property in a
manner discoverable by a routine title search.
Restrictive Agreements and Restrictive Covenants on Title
Exceptions restrictive agreements or restrictive covenants of record related to cost, use, setback,
resale restrictions, right of first refusal, minimum size and building materials, and architectural,
aesthetic or similar matters (other than single-family-use restrictions on 2 to 4-unit properties) are
acceptable provided that the following conditions are met:
• The restrictive agreements or restrictive covenants do not create or provide for any lien that
would be prior to the lien of the Home Mortgage nor provide for the elimination of the lien of
the Home Mortgage.
• The terms and provisions of the restrictive agreements or restrictive covenants are
commonly acceptable to private institutional mortgage investors in the area where the
Mortgaged Premises are located.
• An endorsement to the title insurance policy affirmatively insures that no violation of any
such restrictive agreement or restrictive covenant exists and that any future violation shall
not result in forfeiture or reversion of title.
Payment of Financial Obligations
Any requirement in the deed restrictions requiring the owner of the property to make payments
under certain circumstances or requiring repayment of financial subsidies must state that the
payment obligation is subordinate to the lien of the First Lien Mortgage.
Appraisal Requirements for Properties with Resale Restrictions
The appraisal report must note the existence of any resale restrictions and include an analysis that
addresses any impact the resale restrictions have on the property’s value or marketability.
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• When a resale restriction survives foreclosure or a deed-in-lieu of foreclosure, the appraisal
must reflect the impact the restrictions have on the subject value and when applicable, be
supported by comparables with similar restrictions. If recent sales are not available the
appraiser should then use older comparables sales from the neighborhood or consider
similar restricted sales in competing neighborhoods. Comparable sales without resale
restrictions must be justified by the appraiser to support their use in the appraisal report.
• When a resale restriction terminates upon foreclosure or a deed-in-lieu of foreclosure, the
appraisal must reflect the market value without resale restrictions by using comparables that
are not resale restricted. The appraiser must include the following statement “This appraisal
is made on the basis of a hypothetical condition that the property rights being appraised are
without resale and other restrictions that are terminated automatically upon the latter of
foreclosure or the expiration of any applicable redemption period, or upon recordation of a
deed-in-lieu of foreclosure.”
Additional Requirements Applicable Only to Mortgages Secured by Properties Subject to
Income-Based Resale Restrictions
Eligible property types, mortgage products and mortgage purpose requirements.
• The mortgage must be secured by a 1 or 2-unit Primary Residence (not a Manufactured
Home). The property must be an attached or detached dwelling unit located on an individual
lot or in a Condominium Project or Planned Unit Development (PUD).
• The mortgage must be a First Lien conventional mortgage that is not a Construction
Conversion Mortgage or Renovation Mortgage.
• The resale restriction controls must be administered and controlled by the subsidy provider
or a program administrator.
o Must be managed by or housed within a state or local government, a government
sponsored program or non-profit corporation that is legally chartered in the State in
which it is located and has a 501(c)3 tax exemption from the IRA. The subsidy
provider may employ a third-party non-profit or a for-profit (as allowable by the
applicable jurisdiction) corporation as a program administrator to management the
program and resale restrictions.
o The resale restrictions are imposed by State or local governments, municipalities or
nonprofit entities, to create and preserve affordable housing
o Must provide home counseling services or has established partnerships with at least
one organization that does
o Has established procedures for screening, processing applicants and approving
transactions (when applicable, i.e. cash-out transactions)
o Has procedures to approve capital improvements on the property and guidelines to
allow the borrower to receive credits for any costs of capital improvements paid by
the borrower that are eligible by the subsidy providers program
• Cash-out refinances are permitted only if the subsidy provider or administrator approves the
transaction and the transaction meets the product requirements. Approval must be provided
and state the amount of proceeds the borrower may receive.
• The minimum down payment requirement for purchases must be based on the resalerestricted price.
• Under a HomePossible mortgage, the HomePossible income limits must still be met to
determine product eligibility, even if the subsidy or program limits differ.
Conventional Underwriting Guidelines
VI. Underwriting Guidelines 134 of 149 0422/2021
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• If the income-based resale restrictions survive foreclosure or recordation of a deed-in-lieu of
foreclosure, the subsidy provider may be entitled to obtain “excess proceeds” (not to exceed
an amount equal to the subsidy provided to the previous property owner by the subsidy
provider and secured by a subordinate lien) from Freddie Mac’s sale or transfer of the REO
property if the resale restrictions allow a foreclosing mortgage holder, who acquires title to a
restricted property as real estate owned, to recover from the initial sale or transfer of the real
estate owned property an amount satisfying the total indebtedness previously secured by
the property, as well as any amount incurred during the real estate owned holding period
attributable to the real estate owned property.
Delivery of Mortgage Secured by Properties Subject to Income Based Resale Restrictions
A Special Feature Code (SFC) is used to identify a loan feature not defined by other attributes. For
income based re-sale provide one of the following SFCs, if applicable.
• SFC 630 – Mortgages secured by properties with income- based resale restrictions only that
terminate automatically upon foreclosure.
• SFC 631 – Mortgages secured by properties with income-based resale restrictions only that
survive foreclosure.
by usezloan | Aug 12, 2021 | Financial study
융자지식189- APPRAISAL PORTABILITY
PROPERTIES AFFECTED BY A DISASTER
When there are instances of disaster events such as tornados, flooding, etc. it is the responsibility of the
correspondent or broker to warrant that the subject property is in an acceptable condition. See Natural
Disaster Procedures, Doc #4915, for reinspection requirements.
APPRAISAL PORTABILITY
ACCEPTING AN APPRAISAL FROM ANOTHER LENDER
All requests to accept an appraisal that was ordered from another lender should be sent to
appraisal.review@flagstar.com.
• Underwriting will condition for a compliance certificate from the original lender showing that the
appraisal was ordered by the lender in a manner compliant with Fannie Mae and Freddie Mac
Appraiser Independence Requirements. We will only accept the certificate from the original
lender. Flagstar will not accept the Appraiser Independence Requirements compliance
certificate directly from the customer.
Conventional Underwriting Guidelines
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• Appraisal Review will need to receive the appraisal from an AMC or a competing lender to
determine if it is compliant. Flagstar will not accept the appraisal directly from the customer.
• Upon receipt of the appraisal, and the Appraisal Independence Requirements compliance
certificate from the lender, Appraisal review will upload the appraisal for Underwriting to review
and the customer will be notified by the underwriter.
• The appraiser must not appear on Flagstar’s ineligible appraiser list.
• Appraisals must be submitted in a UCDP-ready MISMO 2.6 XML file. Key ID number SSR will
not be acceptable in lieu of XML file.
Under no circumstances, will Flagstar accept an appraisal transferred or uploaded to Flagstar by the
loan originator or any employee of the originating lender. The appraiser must not appear on Flagstar’s
ineligible appraiser list.
MULTIPLE APPRAISALS FOR SUBJECT PROPERTY
If more than one appraisal for a loan due to applicable law, regulation, lender policy, or otherwise, the
lender must
• Adhere to a policy of selecting the most reliable appraisal rather than the appraisal that states
the highest value
• Document the reasons for relying on the appraisal
• Submit the appraisal selected by the lender through the UCDP prior to delivery.
APPRAISAL RELEASE FROM FLAGSTAR TO ANOTHER LENDER
To have a Conventional or FHA appraisal transferred to a lender other than Flagstar complete and
follow the directions on the Appraisal Release Form, Doc. #3105. Flagstar Bank will provide a letter
stating the appraisal was ordered in compliance with Appraiser Independence Requirements (AIR). VA
appraisals cannot be transferred as they are ordered through WebLGY.
.
USE OF AN APPRAISAL FOR A SUBSEQUENT TRANSACTION
The use of an origination appraisal for a subsequent transaction is acceptable if the following
requirements are met:
• The subsequent transaction may only be a Limited Cash-Out Refinance
• The appraisal report must not be more than 12 months old on the note date of the subsequent
transaction. If the appraisal report is greater than 4 months old on the date of the note and
mortgage, then an appraisal update is required. Age of Appraisal and Appraisal Update
Requirements, for requirements for completing an appraisal update, must be met.
• The property has not undergone any significant remodeling, renovation, or deterioration to the
extent that the improvement or deterioration of the property would materially affect the market
value of the subject property.
• The borrower and the lender/client must be the same on the original and subsequent
transaction
PROJECT APPROVAL FOR CONDOMINIUM AND COOPERATIVE PROPERTIES
Refer to Conventional Condominium Guidelines and Conventional Cooperative Guidelines for project
approval requirements for attached condominiums and all cooperative properties.
Conventional Underwriting Guidelines
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DETACHED CONDOMINIUMS
A detached condo is defined as any condo unit that is completely detached from other condo units in
the project. The unit may share no adjoining walls, ceilings, floors, or other attached architectural
elements (such as breezeways or garages) with any neighboring unit. A detached condo unit may be in
a project consisting solely of detached units or in a development containing a mixture of attached and
detached units. Site condos in which the unit owner owns the detached condo unit and the land upon
which the unit is built are a type of detached condo.
A project review is not required, but the project must meet the following requirements.
• Mortgage is secured by a single detached unit in a condominium project
• The subject is a detached unit and does not include manufactured housing units.
• Project cannot be a condo-hotel, houseboat, timeshare project, or a project with segmented
ownership.
• Appraisals for units in condominium project that consist solely of detached dwellings may be
documented on Form 1004 or 1073.
• The subject is covered by a Title Insurance Policy that includes an ALTA Form 4, condominium
endorsement, or its equivalent.
• The property is covered by hazard, flood, liability, and fidelity insurance
o Fannie Mae – Evidence of liability insurance is not required if the projects common
elements consist of greenbelts and contains no structural improvements or amenities
such as playgrounds or retention ponds and does not contain any commercial space
Freddie Mac – It is not required to determine the existence or adequacy of the
project liability insurance and/or the fidelity or employee dishonesty insurance for
a detached condominium unit reviewed under the detached condominium
projects review type.
• Unit holders have an automatic non-severable interest in the homeowners’ association and pay
mandatory assessments
• When using Loan Product Advisor or Desktop Underwriter, the property type must be submitted
as a Detached Condominium.
• A condo rider will be required at closing
• Special Feature Code must be applied to the loan
o Fannie Mae – SFC 588
o Freddie Mac – SFC H04
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