The following will apply to all conventional loans where the subject property is found to not have been affected by the disaster in question.

Appraisals and Re-Inspection clarification

Hurricane Harvey

Harvey impacted counties in Texas and Louisiana per FEMA disaster notice

  1. Estimated re-inspection fee of $300 will be re-disclosed on the LE.
  2. Re-inspections will be ordered on loans currently in process.  The completion of the re-inspection is subject to appraiser availability and accessibility of the home.  Turn time ETA’s are not established as of yet but will be provided once the order is placed.
  3. For new loans, new appraisals can be ordered but may be subject to a re-inspection after the incident end date (if required by investor).

Hurricane Irma (Florida, Georgia and South Carolina)

Florida, Georgia and South Carolina are currently under a state of emergency while they wait for Irma to make landfall.

ALL Florida, Georgia and South Carolina loans are on hold until further updates from FEMA.      

Loans can’t doc or fund nor will re-inspections or new appraisals be ordered until further updates from FEMA on affected counties are announced.

We are currently awaiting further direction from all investors on their funding requirements and will notify everyone with further announcements.

Note:  Due to insurability purposes, all re-inspections for “Government”, (FHA, VA and USDA), loans can only take place after the disaster incident period has passed.  As such, the procedures below will apply to these loans once FEMA issues the end date for the disaster incident, to complete the period.

Please be advised that FHA will not allow the post-disaster inspection to be done until after the Incident Period as defined by FEMA.  See excerpt from the FHA 4000.1 Handbook below.

Inspection and Repair Escrow Requirements for Mortgages Pending Closing or Endorsement in Presidentially-Declared Major Disaster Areas

All Properties with pending Mortgages or endorsements in Presidentially-Declared Major Disaster Areas (PDMDA) must have a damage inspection report that identifies and quantifies any dwelling damage. The damage inspection report must be completed by an FHA Roster Appraiser even if the inspection shows no damage to the Property, and the report must be dated after the Incident Period (as defined by FEMA). FHA does not require a specific form for a damage inspection report.

Streamline Refinances are allowed to proceed to closing and/or endorsement without any additional requirements.

FHA does not require the Appraiser to ensure utilities are on at the time of this inspection if they have not yet been restored for the area.

Damage inspections should be completed by the original Appraiser. However, if the original Appraiser is not available, another FHA Roster Appraiser in good standing with geographic competence in the affected market may be used. If the Mortgagee uses a different Appraiser to inspect the Property, the Appraiser performing the damage inspection must be provided with a complete copy of the original appraisal.

All damages must be repaired by licensed contractors or per local jurisdictional requirements. All damages, regardless of amount, must be repaired and the Property restored to pre-loss condition with appropriate and applicable documentation.