Natural Disaster Guidelines and Requirements

September 12, 2017

With the recent hurricane activity, we would like to inform and remind you about Gateway’s Natural Disaster Requirements, please see below.

Natural Disaster Requirements

A full appraisal on the appropriate form is required and Client must represent and warrant the existence and condition of the subject property at time of purchase. Regardless of AUS findings, the following are not allowed:

  • Property Inspection Waiver (PIW)
  • Desktop Underwriter Property Inspection Report (2075)
  • Exterior-Only Inspection Residential Appraisal Report (2055)
  • Clients may call FEMA (202) 646-4600 to obtain a current list of disaster areas or visit the FEMA website at http://www.fema.gov/news/disasters.fema
  • Depending on the nature and timing of the disaster, a Property Condition Certification may be required.

It is the Client’s responsibility to review and act upon any loan that may be impacted by any disaster prior to selling any loan to Gateway, and Client warrants that the subject property is in marketable condition without any required repairs or unapproved conditions to the property at the time of sale.  For all affected areas we recommend checking FEMA’s website often as additional counties may be added.  If it is determined at any time after the purchase of your loan that a specific property was not in saleable condition when the loan was sold to Gateway, the loan will be subject to repurchase.

  • Conventional and Rural Development Loans:  Re-inspection with colored photo from appraiser, homeowners Insurance Company or Client that reps and warrants the existence and condition of the property (must be completed by an employee that does not receive direct compensation from the subject transaction).
  • VA:   Re-inspection with colored photo and attached VA form “VA GUIDANCE ON NATURAL DISASTERS” completed and signed by lender and veteran.
  • FHA:  Re-inspection and colored photo must be completed by FHA appraiser or FHA Fee Inspector, and cannot be completed until FEMA declares an end for the disaster. Currently no disaster end date exists.  Hence FHA loans cannot be purchased in the affected counties.

Gateway may pause fundings in counties that the President has declared an Emergency or Major Disaster until the required re-inspections can be provided.  Please refer to our Client Guide, Product Descriptions and Overlay Matrix on Gateway’s website www.gatewaycorrespondent.com for further information.

Please direct any questions to your Regional Sales Manager

Comments are closed.