Correspondent ALERT – FEMA Disaster Declarations for Hawaii and Mississippi

FEMA has issued disaster declarations for the Hawaii and Mississippi counties identified in the list. Effective immediately, Arc Home will purchase loans in the counties impacted by these declarations, provided the subject property inspection meets the requirements detailed below.

Impacted Counties

Hawaii (Delegated Correspondent)

·         Maui

Mississippi

·         Jackson

·         Jasper

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.

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 August 9, 2023 for Hawaii and June 20, 2023 for Mississippi, 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 August 9, 2023 for Hawaii and June 20, 2023 for Mississippi is required. An inspection dated on or after August 9, 2023 for Hawaii and June 20, 2023 for Mississippi 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 August 9, 2023 for Hawaii and June 20, 2023 for Mississippi 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 August 23, 2023 for Hawaii and June 20, 2023 for Mississippi. The inspection report must be dated on or after August 23, 2023 for Hawaii and June 20, 2023 for Mississippi and meet all FHA disaster inspection requirements. If the initial appraisal effective date is on or after August 23, 2023 for Hawaii and June 20, 2023 for Mississippi, 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 August 9, 2023 for Hawaii and June 20, 2023 for Mississippi, an interior and exterior reinspection is required. The reinspection must be dated on or after August 9, 2023 for Hawaii and June 20, 2023 for Mississippi 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.