Wholesale ALERT – Expanded FEMA Disaster Declaration for California

Wholesale ALERT – Expanded FEMA Disaster Declaration for California

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

Impacted Counties

· Butte (NEWLY ADDED)

· Kern

· Madera

· Mariposa

· Mendocino

· Mono

· Monterey

· San Benito

· San Bernadino

· Santa Cruz

· Tulare

· Tuolumne

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/Not Funded	· Follow standard inspection requirements noted below, OR · Provide a Broker’s Drive-By Inspection dated on or after February 22, 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/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 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/Not Funded	· Follow standard inspection requirements noted below, OR · Provide a Broker’s Drive-By Inspection dated on or after February 22, 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 February 22, 2023, an exterior 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 February 22, 2023 is required. An inspection dated on or after February 22, 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 February 22, 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 March 9, 2023. The inspection report must be dated on or after March 9, 2023 and meet all FHA disaster inspection requirements. If the initial appraisal effective date is on or after March 9, 2023, an additional inspection report is not necessary.

Jumbo Express and Jumbo Prime

· If an appraisal has been completed and is dated prior to February 22, 2023, an interior and exterior reinspection is required. The reinspection must be dated on or after February 22, 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.