FEMA Declared Disaster – Connecticut (DR-4629-CT)
Newrez LLC "Newrez" Approved Correspondent Clients: please note, on October 30, 2021, FEMA issued a Major Disaster Declaration, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act), for the Connecticut Remnants of Hurricane Ida natural disaster events with an incident start date of September 1, 2021, and the incident end date of September 2, 2021.
Under the FEMA Major Disaster Declaration, the following two (2) counties have been designated for Individual Assistance due to the impact of the disaster:
- Fairfield
- New London
Effective immediately, in accordance with agency and investor requirements, Newrez will implement the following inspection requirements for loans secured by properties located in the counties identified above.
If the effective date of the appraisal or appraisal alternative was on or prior to the September 2, 2021, Incident End date, the following inspection options by product type will be required.
Conventional
- For properties located within the counties listed above with an appraisal dated on or prior to September 2, 2021, and has not closed by the date of this announcement, either one of the following is required:
- A Borrower signed attestation that subject property was not damaged by disaster along with supporting photos that are date/time stamped. If the photos indicate more than minor cosmetic damage, a new interior appraisal is required, and all damage must be repaired prior to closing. This Borrower attestation option is not eligible for Cash-out refinances.
- A Correspondent client certification that represents and warrants that the property has not sustained damage and that the subject property is in marketable condition with no required repairs or adverse conditions. This Client certification option is not eligible for Cash-out refinances.
- A Disaster Inspection Report with photos evidencing the property is free from damage and the disaster had no effect on the value or marketability is required.
- If the Disaster Inspection Report or Attestation reveals more than minor cosmetic damage, a new interior appraisal is required, and all damage must be repaired prior to closing and purchase by Newrez.
Non-Conforming
- If the effective date of the appraisal or appraisal alternative was on or prior to the September 2, 2021 incident end date, an inspection is required prior to closing or funding of the loan in accordance the Newrez Client Guide Chapter 15, Disaster Policy.
VA
- VA IRRRLs do not require Disaster Inspection or Veteran’s certification.
- For properties located within the counties listed above with an appraisal dated on or prior to September 2, 2021, and have not closed by the date of this announcement, one of following options is required:
- Veteran to provide date/time stamped Photo’s to evidence that subject property was not damaged as result of the disaster along with a “Veteran’s Certification”, signed and dated with following language:
- “I have inspected the property located at ____________and find its condition now to be acceptable to me. I understand that I will not be charged for any disaster‐related expenses and now wish to close the loan.”
- A Correspondent client certification that represents and warrants that the property has not sustained damage and that the subject property is in marketable condition with no required repairs or adverse conditions with a “Veteran’s Certification”, signed and dated with following language:
- “I have inspected the property located at ____________and find its condition now to be acceptable to me. I understand that I will not be charged for any disaster‐related expenses and now wish to close the loan.”
- A Disaster Inspection with photos evidencing the property is free from damage and the disaster had no effect on the value or marketability and a “Veteran’s Certification”, signed and dated with following language:
- “I have inspected the property located at ____________and find its condition now to be acceptable to me. I understand that I will not be charged for any disaster‐related expenses and now wish to close the loan.”
FHA Loans
- FHA Streamline Refinances do not require Disaster Inspections.
- The following inspection requirements apply to all properties located within the FEMA designated counties listed above.
- The following applies to all FHA loans that have not closed prior to October 30, 2021:
- If FHA appraisal is dated on or prior to September 2, 2021, an interior/exterior inspection report with photos by FHA roster appraiser must be dated after the Incident Period end date of September 2, 2021.
If the Loan has closed prior to October 30, 2021, but is not yet FHA insured, an exterior inspection is required prior to FHA endorsement.
If the inspections reveal damage from the disaster, follow repair requirements outlined in the 4000.1 Handbook for PDMDA designations.
USDA Loans
- USDA Streamlined-assist and Streamline without Appraisal Refinance do not require Disaster Inspections.
- For properties located within the counties listed above with an appraisal dated prior to September 2, 2021, and has not closed by the date of this announcement, the following is required:
- A Disaster Inspection Report with photos evidencing the property is free from damage and the disaster had no effect on the value or marketability is required.
Please refer to the Newrez Client Guide Chapter 15, Disaster Policy and Product Profiles for additional details.