Correspondent ALERT – FEMA Disaster Declaration for Louisiana

 

FEMA has issued a Major Disaster Declaration for the Louisiana counties identified in the table. Effective immediately, Arc Home will purchase loans in the counties impacted by this declaration, provided the subject property inspection meets the requirements detailed below.

 

Impacted Counties

 

Louisiana

Avoyelles

Claiborne

LaSalle

Richland

Bienville

Concordia

Madison

Sabine

Bossier

DeSoto

Natchitoches

Webster

Caddo

East Baton Rouge

Ouachita

West Carroll

Calcasieu

Franklin

Rapides

Winn

Catahoula

Grant

Red River

 

 

Inspection Requirements

For all transactions in any of the above counties, property inspections must satisfy the following criteria, as applicable per loan type. Note: The inspection requirements detailed below apply only if the loan has not yet been purchased by Arc Home. If the loan has been purchased, Arc Home will obtain any necessary inspections.

                                                                                                 

Conventional, FHA Streamline and VA

  • If an appraisal has been completed and is dated on or prior to February 19, 2021, an inspection is required for ALL Conventional, VA Purchase, and VA Cash-Out Refinance loans. For Fannie Mae and Freddie Mac loans with a Property Inspection Waiver, an inspection is required. An inspection is also required for ALL FHA Streamline Refinance transactions and VA Interest Rate Reduction Loans (IRRRLs).
  • The inspection must be dated after February 19, 2021 and performed by an appraiser or licensed contractor, include interior and exterior photographs of the subject, and indicate no apparent damage to the property.
  • A Lender’s Certification may be submitted in lieu of a property inspection provided the certification is completed on company letterhead, states that the property was not impacted by the most recent FEMA Disaster, and includes photographs taken by the Lender.

 

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 February 19, 2021. The inspection report must be dated after February 19, 2021 and meet all FHA disaster inspection requirements. If the initial appraisal effective date is on or after February 19, 2021, an additional inspection report is not necessary.

 

Arc Access Non-QM and Jumbo

  • If an appraisal has been completed and is dated on or prior to February 19, 2021, a reinspection by the appraiser is required. The inspection must be dated after February 19, 2021. An interior and exterior inspection is required, and the inspection must verify that the property has not been impacted by the disaster.