source:
  type: guide
  id: fnma-sel-b5-3.2-05
  authority: 'Fannie Mae Selling Guide B5-3.2-05 — HomeStyle Renovation Mortgages:
    Completion Certification'
  description: 'Fannie Mae Selling Guide B5-3.2-05 — HomeStyle Renovation Mortgages:
    Completion Certification.'
  coverage_tier: operative
obligations:
- id: fnma-sel-b5-3.2-05-full
  canonical_id: fnma-sel-b5-3.2-05-full
  section: 'Fannie Mae Selling Guide B5-3.2-05 — HomeStyle Renovation Mortgages: Completion
    Certification'
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: 'Fannie Mae Selling Guide B5-3.2-05 — HomeStyle Renovation Mortgages:
      Completion Certification'
    source_class: fnma-guide
    source_url: https://singlefamily.fanniemae.com/media/document/pdf/selling-guide
    snapshot_id: 5f7b8b79da595d76
    fetched_at: '2026-05-25T14:09:57Z'
    content_hash: sha256:98cf85a02861bbe84914a0e339b327c8fc131869a8a573882007bbeea60c5701
    paragraph_quote: 'B5-3.2-05, HomeStyle Renovation Mortgages: Completion Certiﬁcation
      (06/04/2025) Introduction This topic contains information on the HomeStyle Renovation
      mortgage including: Completion Certiﬁcation Title and Insurance Updates Uniform
      Appraisal Dataset (UAD) 3.6 Policy Completion Certiﬁcation Following completion
      of the renovation work, the lender must obtain a certiﬁcation of completion
      stating the renovation was completed in accordance with the submitted plans
      and speciﬁcations. The certiﬁcation must be documented on the Appraisal Update
      and/or Completion Report (Form 1004D). The 1004D must conﬁrm all “subject to”
      items listed on the appraisal were completed. If deviations have been made to
      the initial plans, the appraiser must note any impact to the value. If the value
      has been impacted, the lender must follow the policy in UnplannedChanges in
      Scope or Incomplete Work in B5-3.2-03, HomeStyle Renovation Mortgages: Collateral
      Considerations. The lender must also obtain a certiﬁcate of occupancy upon completion
      of renovation if it is required by local authorities for the type of renovation
      work that was completed. Title and Insurance Updates Concurrent with the last
      disbursement of funds, the lender must obtain a title update through the date
      the renovation was completed, to ensure the continuance of Fannie Mae’s ﬁrst
      lien priority and the absence of any mechanic''s or materialmen’s liens. When
      the property is located in a state in which contractors’, Published May 6, 2026
      740 subcontractors’, or materialmen’s liens have priority over mortgage liens,
      the lender must obtain all necessary lien releases or take any other action
      that may be required to ensure title to the property is clear of all liens and
      encumbrances. The lender also must retain in the loan ﬁle a certiﬁcation regarding
      the adequacy of the property insurance following completion of the renovation.
      The certiﬁcation must conﬁrm the coverage has been increased, if necessary,
      to comply with Fannie Mae’s standard property and ﬂood insurance requirements.
      Uniform Appraisal Dataset (UAD) 3.6 Policy Lenders using UAD 3.6 must follow
      the requirements in the UAD 3.6 Policy Supplement. Recent Related Announcements
      The table below provides references to recently issued Announcements that are
      related to this topic. Announcements Issue Date Announcement SEL-2025-04 June
      04, 2025'
  judgment: false
