COVID-19 may cause issues with completion of appraisals and inspections. What if…
- the borrower will not let an appraiser into his or her home?
- an inspector does not feel safe completing a property inspection?
- a servicer cannot meet inspection and preservation timelines due to inaccessibility and vendor network constraints?
Effective immediately and until further notice, Fannie Mae is temporarily providing flexibility with respect to the completion of property inspections, including inspections for properties securing a delinquent mortgage loan as described in Servicing Guide D2-2-10, Requirements for Performing Property Inspections and inspections related to hazard loss repairs as described in Servicing Guide B-5-01, Insured Loss Events, as well as property preservation activities as described in Servicing Guide E-3.2-12, Performing Property Preservation During Foreclosure Proceedings, as a result of the impact of COVID-19.
If a servicer is unable to complete a property inspection or property preservation activity in accordance with the Servicing Guide, it must document its efforts and the reason for any exception in the mortgage loan file.
As a reminder, Servicing Guide D2-2-10, Requirements for Performing Property Inspections authorizes a curbside (drive-by) inspection if there is potential danger to the inspector. Additionally, the Property Preservation Matrix and Reference Guide authorizes servicers to utilize alternative data or other means available to determine occupancy status when inspection results are unknown due to lack of access. Please also note that the servicer’s inability to complete property inspections due to COVID-19 related impacts must not impact the servicer’s disbursement of insurance loss proceeds.
Servicers who have questions about property inspections for delinquent mortgage loans should contact Property_Preservation@fanniemae.com; for questions regarding hazard loss inspections, contact Hazard_Loss@fanniemae.com.
See below for more information on COVID-19: