ARKANSAS FEMA Disaster Declaration – DR-4788 – (ALL LOANS) Tornadoes

Importance: High

Please review your pipeline of ARKANSAS loans.  If we have a loan within the incident areas listed below you must follow the guidance provided below per the loan type.  A condition will be added by the UW to these loans in the incident areas listed below.

PLEASE NOTE: Incident end date is May 27, 2024.

TYPE of re-inspection allowed PER LOAN TYPE listed below:

CONVENTIONAL LOANS ONLY:

Interior and Exterior disaster re-inspections are not required on CONVENTIOANL LOANS if the guidance below is followed:

NOTE: Files with PIWs must have Final Approval AUS reflecting that the PIW is still eligible.  If we lose the PIW eligibility on the Final Approval AUS we will be required to order a Full Appraisal.  If the PIW file is closing on or after May 28, 2024, the Property Condition Certification forms will not be required.

NOTE: If we have an appraisal dated on or after May 28, 2024, the Property Condition Certification forms will not be required.

If we have a CONVENTIONAL LOAN closing/funding in the counties indicated on the FEMA disaster area list, we will allow the file to close/fund with the following Property Condition Certification form signed.  With the properly executed form a disaster re-inspection will not be required.

**PROPERTY CONDITION CERTIFICATION FORMS (Purchase and Refi) are located in the Encompass print menu – custom forms.

CONVENTIONAL PURCHASE transactions:

The property certification form specifically for purchase transactions can be located in the Encompass print menu – custom forms.  Buyer, Seller, and or Real Estate agents that are part of the transaction can sign/certify the form.  The borrower must also sign the form indicating that they will allow Mutual of Omaha to perform an interior inspection in the future if we deem one necessary.  NO PHOTOS required.  If the form is not signed, we will not be able to close/fund the transaction unless an Interior and Exterior disaster re-inspection is completed.  If the borrower indicates that damage has occurred to the subject property this must be brought to Upper Management immediately to review for next steps before we allow the file to close/fund.

CONVENTIONAL REFINANCE transactions:

The property certification form specifically for refinance transactions can be located in the Encompass print menu – custom forms.   The borrower must sign/certify the form.  The form also indicates that they will allow Mutual of Omaha to perform an interior inspection in the future if we deem one necessary.  PHOTOS ARE REQUIRED ON ALL CASH OUT TRANSACTIONS.  If the form is not signed we will not be able to close/fund the transaction unless an Interior and Exterior disaster re-inspection is completed.  If the borrower indicates that damage has occurred to the subject property this must to brought to Upper Management immediately to review for next steps before we allow the file to close/fund.

THESE FORMS MUST BE EXECUTED PRIOR TO CLOSING.

FHA LOANS ONLY:

FHA LOANS Full Doc:

FEMA Declared incident period beginning date is May 24, 2024

Incident End Date is May 27, 2024

If the appraisal is dated:

• On or before the incident period end date, or
• Within 14 calendar days from the incident begin date, whichever is earlier

FHA requires a disaster inspection (Interior and Exterior).  The report must be dated after:

• The incident period end date, or
• 14 calendar days from the incident begin date, whichever is earlier – The disaster inspection would need to be date on or after May 28, 2024

FHA LOANS Streamline:

Incident End Date is May 27, 2024

FHA Streamline loans are required to obtain an Interior and Exterior disaster inspections.  A Disaster inspection will be required for all FHA Streamline loans until May 27, 2024.  If the file’s close date is on or after May 28, 2024 a Disaster inspection is not required.

VA LOANS ONLY:

VA Full Doc Loans are required to obtain an Interior and Exterior disaster inspections.  If we have an appraisal dated on or after May 28, 2024 the Disaster Inspection will not be required.

VA LOANS IRRRL (Streamlines):

Incident End Date is May 27, 2024

VA  IRRRL Loans are required to obtain an Interior and Exterior disaster inspections.  A Disaster inspection will be required for all VA Streamline loans until May 27, 2024.  If the file’s close date is on or after May 28, 2024 a Disaster inspection is not required.

NOTE:

**If the file is an investor underwritten loan the investor must determine the disaster inspection requirements.  There must be clear communication from the investor as it pertains to the disaster re-inspection requirements.

***This is subject to change if more information is obtained from FEMA or our investors.

County List:

Benton
Boone
Marion