FEMA has updated the major disaster declaration for California (DR-4353) – California Wildfires, Flooding, Mudflows, And Debris Flows - designating 4 counties as eligible for individual assistance – Los Angeles, San Diego, Santa Barbara and Ventura. Public assistance remains available for Santa Barbara and Ventura counties.
Sellers are responsible for identifying geographic areas impacted by disasters and taking appropriate steps to ensure the subject property has not been adversely affected. Our broker partners should follow this policy and guidelines to best inform their borrowers of potential delays or costs. The following guidelines apply to properties located in the below counties. In addition, when there is knowledge of an adverse event occurring near and around the subject property location, such as earthquakes, floods, tornadoes, or wildfires, additional due diligence should be used to determine if the disaster guidelines should be followed.
JMAC will suspend funding’s for all FHA Transactions with the exception of FHA Streamlines until an end date or waiver have been granted. JMAC will consider exceptions on Purchase transactions where the loan has “Docs Ordered” as of 1/16/2018, below are the counties impacted:
- Los Angeles
- San Diego
- Santa Barbara
A seven day lock extension will be granted for all loans currently in an impacted county.
Government Loans will follow FHA & VA guidelines until further notice.
- An interior & exterior inspection with photographs dated after the end date or HUD issued waiver is required for loans that have not closed as of 1/15/18. Inspections must be completed prior to closing, but dated in accordance with FHA requirements.
- Loans that are funded prior to 1/15/18 will require exterior only inspections with photographs prior to endorsement
- FHA Streamlines require an Exterior only inspection with photos, and may be completed prior to the end date being declared. Inspection is required prior to closing.
- An interior & exterior inspection with photographs is required prior to closing
- Must meet VA borrower/lender certification requirements, and have income/employment reverified
- VA IRRRL transactions require an Exterior only inspection with photos prior to closing, but are not subject to income re-verification requirements
Guidelines for disaster areas should be followed for 90-days from the disaster period end date or the date of the event, whichever is later.
Below is JMAC Lending’s current documentation requirements for conventional loans when a property is located within a Federal Disaster area:
Conventional and Non-Conforming
- An exterior Catastrophic Disaster Area Inspection Report (CDAIR) or 1004D of the subject property performed by an appraiser is required.
- Loans previously approved without an appraisal will require an exterior or Catastrophic Disaster Area Inspection Report (CDAIR) or 1004D.
Note: A 1004D Disaster Inspection Report can be ordered in lieu of a Catastrophic Disaster Area Inspection Report (CDAIR) if applicable.
Appraisals Completed Prior to Disaster
- Appraiser must comment if the subject property is free from damage, is in the same condition from previous inspection and there has been no change in the valuation.
- Inspection report must include photographs of the subject property and street view.
- Any damage must be repaired and re-inspected prior to closing.
Appraisals Completed After Disaster Event
- Appraiser must comment of the adverse event and certify that there has been no change in the valuation.
- Any existing damage noted from the original report must be repaired and re-inspected prior to closing.
For more information, please contact your Account Executive.