Disaster Policy Implementation: Tropical Storm Imelda

October 8, 2019

On October 4, 2019 FEMA issued a Disaster Declaration for Texas Tropical Storm Imelda (DR-4466).
Major Disaster Declaration FEMA-4466-DR has authorized individual assistance in the following counties:

Chambers, Harris, Jefferson, Liberty, Montgomery & Orange

COUNTIES IN DECLARED DISASTER AREA AND APPRAISALS COMPLETED PRIOR TO DISASTER

Re-inspection/certification of value is required on any property in a listed declared County prior to closing and/or Gateway purchasing your loan:

  • Re-inspection may be performed by the following:  Appraiser, Homeowners Insurance Company, Licensed Home Inspection Company
  • The re-inspection must state the property is habitable and contains no evidence of damage based on the exterior inspection
  • Any property with damage must be re-inspected by the original Appraiser
  • The re-inspection should list necessary repairs
  • Repairs must be completed prior to closing, evidenced by a final inspection with photos
  • If a conventional or government loan, lender and borrower to sign ‘Lender Certification for Disasters’
  • If a VA loan, lender and borrower to sign ‘VA Lender Certification for Disasters’
  • Special note on FHA – FHA requires Presidentially – Declared Major Disaster Area notice to indicate a final close or completion before re-inspection can be ordered. FHA requires a roster FHA appraiser to complete the re-inspection. Gateway cannot purchase FHA loans until the Declared Major Disaster Area has final close date.

COUNTIES IN DECLARED DISASTER AREA AND APPRAISALS COMPLETED AFTER THE DISASTER

  • Appraiser must comment on any damage as well as the effect on marketability and value for 90 days following the date of the declared disaster
  • Properties with damage should be appraised ‘subject to repairs’
  • Repairs must be completed prior to closing and/or Gateway purchasing your loan, evidenced by a final inspection with photos

It is the correspondent’s responsibility to follow Gateway’s Disaster Policy outlined in Chapter 2 of our Client Guide (pages 4 & 5) prior to any loan being sold to Gateway.  Correspondents should order a post-disaster inspection report if there is reason to believe the property has sustained any damages in a disaster.  The subject property should be in marketable condition and confirmation there were no repairs or other detrimental conditions to the subject property at the time the loan is sold to Gateway.  Loan fundings in affected areas are subject to review and must adhere to Gateway’s Disaster Policy outlined in the Client Guide.

*Special note on FHA –All Properties with pending Mortgages or endorsements in areas under a Presidentially-Declared Major Disaster Areas (PDMDA) designated for individual assistance 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) or 14 Days from the Incident Period start date, whichever is earlier. If the effective date of the appraisal is on or after the date required above for an inspection, a separate damage inspection report is not necessary.

Please direct any questions to your Regional Sales Manager

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