FEMA Declared Disaster – Kentucky (DR-4630-KY)
Newrez LLC "Newrez" Approved Correspondent Clients: please note, on December 12, 2021, FEMA issued a Major Disaster Declaration, under the Robert T. Stafford Disaster Relief and Emergency Assistance Act (the Stafford Act), for the Kentucky Severe Storms, Straight-line Winds, Flooding, and Tornadoes natural disaster events with an incident start date of December 10, 2021. FEMA has not issued an incident end date for this declaration at this time, however, Newrez is designating December 14, 2021, for the purposes of determining inspection requirement described below.
Under the FEMA Major Disaster Declaration, the following eight (8) counties have been designated for Individual Assistance due to the impact of the disaster:
- Caldwell
- Fulton
- Graves
- Hopkins
- Marshall
- Muhlenberg
- Taylor
- Warren
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 December 14, 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 December 14, 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 December 14, 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 December 14, 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.
- FHA requires disaster inspections to be completed by an FHA Roster Appraiser and the report must be dated after the Incident Period End date as declared by FEMA or 14 days from the Incident Period Start date, whichever is earlier. Since FEMA has not issued an Incident End date for DR# 4630 as of December 16, the date of this announcement, all FHA inspections must be delayed until FEMA issues Incident End date or 14 days after the Start date of December 10, 2021. The following inspection requirements apply to all properties located within the FEMA designated counties listed above.
- 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 December 10, 2021:
- If FHA appraisal is dated on or prior to December 10, 2021, an interior/exterior inspection report with photos by FHA roster appraiser must be dated after the Incident Period end date or 14-day period indicated above.
- The following applies to all FHA loans that have closed prior to December 10, 2021:
- If the loan has closed prior to December 10, 2021, but is not yet FHA insured, an exterior inspection is required prior to FHA endorsement.
- If the inspections indicate damage from the disaster, follow repair requirements outlined in the 4000.1 Handbook based on the amount of repairs and whether property is habitable.
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 December 10, 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.