Correspondent “FEMA Disaster Notification” from Arc Home LLC

Correspondent ALERT – FEMA Disaster Expansion for Kentucky

FEMA has expanded the disaster declaration, DR #4860, to also include the Kentucky counties highlighted in the table. Arc Home will purchase loans in the counties impacted, provided the subject property inspection meets the requirements detailed below.

Impacted Counties

Kentucky

Breathitt	Clay	Estill	Floyd
Harlan	Johnson	Knott	Lee
Letcher	Martin	Owsley	Perry
Pike	Simpson

Inspection Requirements Table

Refer to the following table, which outlines the inspection requirements by program and loan closing status.

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 February 25, 2025 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
Access Non-QM Edge Non-QM Elite QM Foreign National DSCR Conventional Investment Property FNMA/FHLMC Second Home & Investment	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 February 25, 2025 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.

If an appraisal has been completed prior to February 25, 2025, 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, Access Non-QM, Edge Non-QM, Foreign National DSCR, and Elite QM loans. For any Conventional loan with a Property Inspection Waiver, an inspection dated on or after February 25, 2025 is required. An inspection dated on or after February 25, 2025 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 February 25, 2025 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 February 28, 2025. The inspection report must be dated on or after February 28, 2025 and meet all FHA disaster inspection requirements. If the initial appraisal effective date is on or after February 28, 2025, an additional inspection report is not necessary.