Wholesale ALERT – FEMA Disaster Declaration for Missouri – CORRECTION

NOTE: At this time, Arc Home is not accepting Wholesale loan registrations in the state of Missouri. In the event this changes in the future, the reinspection requirements detailed below will apply.

 

FEMA has issued a disaster declaration for the Missouri counties identified in the table. Arc Home will fund loans in the counties impacted by this declaration, provided the subject property inspection meets the requirements detailed below.

 

Impacted Counties

 

Missouri

Barry

Butler

Carter

Howell

New Madrid

Ripley

Scott

Shannon

Stoddard

Texas

 

 

 

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

·  USDA

Signed/Closed/Not Funded

·  Follow standard inspection requirements noted below, OR

·  Provide a Broker’s Drive-By Inspection dated on or after May 28, 2024 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

·  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 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 May 28, 2024 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, Access Non-QM, Edge Non-QM, Foreign National DSCR, and Elite QM

·         If an appraisal has been completed prior to May 28, 2024, 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, 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 May 28, 2024 is required. An inspection dated on or after May 28, 2024 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 May 28, 2024 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 May 28, 2024. The inspection report must be dated on or after May 28, 2024 and meet all FHA disaster inspection requirements. If the initial appraisal effective date is on or after May 28, 2024, an additional inspection report is not necessary.

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