Wholesale ALERT – Expanded Disaster Declaration for California

Wholesale ALERT – Expanded Disaster Declaration for California

 

FEMA has expanded the disaster declaration for California, the additional counties impacted by the update are noted in the list below. Effective immediately, Arc Home will fund loans in the counties impacted by these declarations, provided the subject property inspection meets the requirements detailed below.

 

Impacted Counties

 

·         Merced

·         Sacramento

·         San Luis Obispo (NEWLY ADDED)

·         Santa Barbara (NEWLY ADDED)

·         Santa Cruz

 

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

·  USDA

Signed/Closed

·  Follow standard inspection requirements noted below, OR

·  Provide a Broker’s Drive-By Inspection dated on or after January 11, 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 Broker

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

·  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

·  Satisfactory FHA inspection must be completed prior to insuring the loan; 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

·  Follow standard inspection requirements noted below, OR

·  Provide a Broker’s Drive-By Inspection dated on or after January 11, 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 Broker

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, USDA, 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 January 11, 2023, a reinspection is required for ALL Fannie Mae, Freddie Mac, USDA Purchase, USDA Non-Streamline, 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 January 11, 2023 is required. An inspection dated on or after January 11, 2023 is also required for ALL FHA and USDA Streamline Refinance transactions, and VA Interest Rate Reduction Loans (IRRRLs).

·         The reinspection must be dated on or after January 11, 2023 and performed by an appraiser or licensed contractor (on letterhead), include interior and exterior photographs of the subject, and verify that the property was not impacted by the disaster event.

 

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 January 11, 2023. The inspection report must be dated on or after January 11, 2023 and meet all FHA disaster inspection requirements. If the initial appraisal effective date is on or after January 11, 2023, an additional inspection report is not necessary.

 

Jumbo Express, Jumbo Prime and Super Jumbo

·         If an appraisal has been completed and is dated prior to January 11, 2023, an interior and exterior reinspection is required. The reinspection must be dated on or after January 11, 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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