Correspondent ALERT – FEMA Disaster Declaration for Florida

Correspondent ALERT – FEMA Disaster Declaration for Florida

 

FEMA has issued a disaster declaration for the Florida county identified below. Effective immediately, Arc Home will purchase loans in the counties impacted by this declaration, provided the subject property inspection meets the requirements detailed below.

 

Impacted County

 

·         Broward

 

Inspection Requirements Table

 

Refer to the following table, which outlines the inspection requirements by program and loan closing status as of the date of this announcement.

 

Loan Program

Loan Status

Inspection Requirements

·  Fannie Mae

·  Freddie Mac

·  VA

Signed/Closed/Not Funded

·  Follow standard inspection requirements noted below, OR

·  Provide a Lender’s Certification dated on or after April 15, 2023 in lieu of a property inspection – must be completed on letterhead, verify the property was not impacted by the disaster event, and include photographs taken by the Lender

Not Signed/Closed

·  Delay closing and require inspection; follow standard inspection requirements noted below

·  Arc Access Non-QM

·  Arc Elite QM

·  Conventional Investment Property

·  FNMA/FHLMC Second Home & Investment

·  Jumbo

Signed/Closed/Not Funded

·  Fund loan, delay delivery and require inspection; follow standard inspection requirements noted below

Not Signed/Closed

·  Delay closing and require inspection; follow standard inspection requirements noted below

FHA Purchase, Rate/Term, Simple Refinance, Cash-Out Refinance

Signed/Closed/Not Funded

·  Satisfactory FHA inspection required prior to purchase by Arc Home; follow standard inspection requirements noted below

Not Signed/Closed

·  Delay closing and require inspection; follow standard inspection requirements noted below

FHA Streamline Refinance

Signed/Closed/Not Funded

·  Follow standard inspection requirements noted below, OR

·  Provide a Lender’s Certification dated on or after April 15, 2023 in lieu of a property inspection – must be completed on letterhead, verify the property was not impacted by the disaster event, and include photographs taken by the Lender

Not Signed/Closed

·  Delay closing and require inspection; follow standard inspection requirements noted below

 

 

Inspection Requirements (Standard)

For all transactions in any of the affected counties, property inspections must satisfy the following criteria, as applicable per loan type.

                                                                                                 

Fannie Mae, Freddie Mac, FHA Streamline, VA, Conventional Investment Property, FNMA/FHLMC Second Home & Investment Property, Arc Access Non-QM and Arc Elite QM

·         If an appraisal has been completed prior to April 15, 2023, an exterior reinspection is required for ALL Fannie Mae, Freddie Mac, VA Purchase, VA Cash-Out Refinance, Conventional Investment Property, FNMA/FHLMC Second Home & Investment Property, Arc Access Non-QM, and Arc Elite QM loans. For any Conventional loan with a Property Inspection Waiver, an inspection dated on or after April 15, 2023 is required. An inspection dated on or after April 15, 2023 is also required for ALL FHA Streamline Refinance transactions and VA Interest Rate Reduction Refinance Loans (IRRRLs).

·         The reinspection must be dated on or after April 15, 2023 and performed by an appraiser, include exterior photographs of the subject, and verify that the property was not impacted by the disaster event. Note: If the exterior inspection indicates the property sustained any damage, an additional interior inspection of the property must be completed by the appraiser.

 

FHA Purchase, Rate/Term Refinance, Simple Refinance and Cash-Out Refinance

·         A reinspection of the subject property is required for any transaction with an appraisal dated prior to April 15, 2023. The inspection report must be dated on or after April 15, 2023 and meet all FHA disaster inspection requirements. If the initial appraisal effective date is on or after April 15, 2023, an additional inspection report is not necessary.

 

Jumbo Express and Jumbo Prime (Non-Delegated Correspondent)

·         If an appraisal has been completed and is dated prior to April 15, 2023, an interior and exterior reinspection is required. The reinspection must be dated on or after April 15, 2023 and completed by a licensed appraiser on Fannie Mae Form 1004D. The inspection must include photographs and verify that the property was not impacted by the disaster event.

 

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