Correspondent ALERT – FEMA Disaster Declaration Update for California

Based on the progress made in containing the wildfires for disaster, DR# 4856, in Los Angeles County, the requirements for proximity to the evacuation zones have been removed and the effective dates for property inspections have been updated to the following:

FHA Loans:

For all FHA Purchases, Rate/Term Refinances, Simple Refinances and Cash-Out Refinances with an appraisal dated prior to February 3, 2025, a reinspection of the subject property will be required. The inspection report must meet all FHA disaster inspection requirements and be dated on or after February 3, 2025. If the initial appraisal effective date is on or after February 3, 2025, an additional inspection report is not necessary.

Fannie, Freddie, Arc Access, Arc Elite, Foreign National, USDA, FNMA/FHLMC Second Home-Investment, Conventional Investment Property, VA Loans, all Government Streamline Loans:

For all Fannie/Freddie, Arc Access, Arc Elite, Arc Edge, FNMA/FHLMC Second Home-Investment Property, Conventional Investment Property, VA loans, USDA and FHA Streamlines, if the appraisal was completed prior to February 3, 2025, we will require an exterior inspection. The reinspection must be completed by a licensed appraiser with photographs, verifying the subject property was not impacted by the event. If the exterior inspection indicates any damage has occurred to the property, an additional interior inspection will be required by the appraiser. For any Conventional loan with a Property Inspection Waiver, VA IRRRL, FHA Streamline or USDA Streamline, the inspection must be dated on or after February 3, 2025.

The following grid provides direction for different loan types based on whether the loan is closed but not yet funded as well as whether the loan is closed:

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