If the loan seasoning is less than two years old, the servicer must obtain the list of improvements made by the borrower post-origination along with the actual cost of these improvements. The servicer must include this information when ordering the BPO or appraisal via SMDU. The current property value will be determined by the BPO or appraisal, therefore, the servicer should not consider improvement impacts on property value when submitting the improvement costs.
*Only applies to 1-unit principal residence or second homes. 1-4 unit investment or 2-4 unit principal residences must be seasoned at least 2 years.