source:
  type: guide
  id: fnma-sel-b2-3-05
  authority: Fannie Mae Selling Guide B2-3-05 — Properties Aﬀected by a Disaster
  description: Fannie Mae Selling Guide B2-3-05 — Properties Aﬀected by a Disaster.
  coverage_tier: operative
obligations:
- id: fnma-sel-b2-3-05-full
  canonical_id: fnma-sel-b2-3-05-full
  section: Fannie Mae Selling Guide B2-3-05 — Properties Aﬀected by a Disaster
  type: do
  tags:
  - regulator-direct
  - fnma
  - selling-guide
  - corpus-expansion
  - tier-operative
  primary_source:
    tier: 1
    authority: Fannie Mae Selling Guide B2-3-05 — Properties Aﬀected by a Disaster
    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: 'B2-3-05, Properties Aﬀected by a Disaster (09/03/2025) Introduction
      This topic contains information on properties aﬀected by a disaster, including:
      Overview Property Eligibility Requirements Value Acceptance Oﬀers Following
      a Disaster Age of Documentation Requirements Uniform Appraisal Dataset (UAD)
      3.6 Policy Overview The Mortgage Selling and Servicing Contract requires the
      lender to warrant for each loan it delivers to Fannie Mae that the property
      is not damaged by ﬁre, wind, or other cause of loss and that there are no proceedings
      pending for the partial or total condemnation of the property. The lender also
      warrants that the loan conforms to all applicable requirements in the Selling
      Guide, including the requirement that the loan is an acceptable investment.
      Finally, the lender represents and warrants that it knows of nothing involving
      the loan or the property that can reasonably be expected to cause the loan to
      become delinquent or adversely aﬀect the mortgage''s value or marketability.
      Property Eligibility Requirements The lender must be able to make the warranties
      that are described above. Therefore, before delivery of a loan to Fannie Mae
      where the property may have been damaged by a disaster, the lender is expected
      to take prudent and reasonable actions to determine whether the condition of
      the property may have materially Published May 6, 2026 265 changed. The lender
      is responsible for determining if an inspection of the property and/or new appraisal
      is necessary to support this warranty. If a property is located in a condo or
      co-op project, both the condition of the unit and the condition of the building
      in which the unit is located must be assessed. Lenders should use the following
      criteria when determining if the loan can be delivered to Fannie Mae: If the
      property has been damaged and the damage does not aﬀect the safety, soundness,
      or structural integrity of the property and the repair items are covered by
      insurance, the lender may deliver the loan to Fannie Mae. In these circumstances,
      the lender must obtain documentation of the professional estimates of the repair
      costs and must ensure that suﬃcient funds are available for the borrower''s
      beneﬁt to guarantee the completion of the repairs. If the property was damaged
      and the damage is uninsured or the damage aﬀects the safety, soundness, or structural
      integrity of the property, the property must be repaired before the loan is
      delivered to Fannie Mae. These requirements are necessary to support the lender’s
      property representations and warranties and apply through the end of the delivery
      process which is the whole loan purchase date or MBS settlement date. For DU
      loan caseﬁles with a value acceptance or value acceptance + property data oﬀer,
      the lender may exercise the oﬀer as long as they have complied with the above
      requirements with regard to property condition and repairs. This applies in
      addition to the value acceptance requirements in B4-1.4-10, Value Acceptance
      and B4-1.4-11, Value Acceptance + Property Data. Note: The above requirements
      do not apply to high LTV reﬁnance loans. See B5-7-02, High LTV Reﬁnance Underwriting,
      Documentation, and Collateral Requirements for the New Loan for additional information.
      For delivered loan requirements, see the Servicing Guide, Chapter D1-3. DU is
      updated periodically to incorporate ZIP codes included in FEMA-Declared Disaster
      Areas eligible for Individual Assistance. Fannie Mae may also add areas impacted
      by other disasters or emergencies at its discretion. New loan caseﬁles for properties
      in those ZIP codes are excluded from consideration for a new value acceptance
      or value acceptance + property data oﬀer. Value Acceptance Oﬀers Following a
      Disaster After Fannie Mae has received an acceptable appraisal that was performed
      following a disaster, that appraisal can serve as the basis for a future value
      acceptance or value acceptance + property data oﬀer. Lenders may exercise these
      oﬀers in accordance with the requirements in B4-1.4-10, Value Acceptance and
      B4-1.4-11, Value Acceptance + Property Data. Age of Documentation Requirements
      When a loan is secured by a property located in a FEMA-Declared Disaster Area
      eligible for individual assistance, Fannie Mae provides additional ﬂexibilities.
      The following requirements apply: The underwriting documentation, including
      credit reports and veriﬁcations of income and assets, must be dated no more
      than 180 days before the note date. Lenders may disregard the message in the
      DU Underwriting Findings Report that indicates if the Published May 6, 2026
      266 loan caseﬁles has not already closed, the credit report has expired. The
      appraisal must be dated no more than 180 days before the note date. Lenders
      must comply with the property eligibility requirements above. Lenders who wish
      to receive representation and warranty relief oﬀered by the DU validation service
      must continue to comply with all conditions in the DU Underwriting Findings
      Report, including the close by date. Loans originated in accordance with the
      age of documentation ﬂexibilities, must be delivered to Fannie Mae no later
      than two years from the date of the disaster declaration by FEMA. See B5-4.2-02,
      Disaster-Related Limited Cash-Out Reﬁnance Flexibilities for information related
      to certain ﬂexibilities oﬀered for a disaster related limited cash-out transaction.
      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-2025-07 September
      03, 2025 Announcement SEL-2025-04 June 04, 2025 Announcement SEL-2023-02 March
      01, 2023 Announcement SEL-2019-07 August 07, 2019 Announcement SEL-2019-04 May
      01, 2019 Subpart B3, Underwriting Borrowers Introduction This subpart contains
      borrower underwriting policies for conventional mortgage loans that are sold
      to Fannie Mae. Fannie Mae oﬀers lenders two options for conducting a comprehensive
      risk assessment–automated underwriting through DU or manual underwriting. Both
      methods include an evaluation of the borrower’s equity investment, credit history,
      liquid reserves, reliable and recurring income, and the cumulative eﬀect that
      these and other risk factors have on mortgage loan performance. Published May
      6, 2026 267 Chapter B3-1, Manual Underwriting Introduction This chapter provides
      lenders with information on the comprehensive risk assessment approach to manual
      underwriting.'
  judgment: false
