Wholesale ALERT – FEMA Disaster Declarations for Alabama and California

Wholesale ALERT – FEMA Disaster Declarations for Alabama and California

FEMA has issued disaster declarations for the Alabama and California counties identified 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

Alabama – Disaster End Date January 13, 2023

· Autauga

· Dallas

California – Disaster End Date January 11, 2023

· Merced

· Sacramento

· 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 the Disaster End Date 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 the Disaster End Date 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 the Disaster End Date, 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 the Disaster End Date is required. An inspection dated on or after the Disaster End Date 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 the Disaster End Date 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 the Disaster End Date. The inspection report must be dated on or after the Disaster End Date and meet all FHA disaster inspection requirements. If the initial appraisal effective date is on or after the Disaster End Date, 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 the Disaster End Date, an interior and exterior reinspection is required. The reinspection must be dated on or after the Disaster End Date 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.