Natural Disaster Policy at Gateway Mortgage Group, LLC

September 12, 2018

The following announcement is made to provide guidance regarding natural disasters that may affect loans scheduled to close or fund in those affected areas.  Affected counties will be listed on the FEMA website:  http://www.fema.gov/news/disasters.fema

COUNTIES NOT YET DECLARED IN DISASTER AREA ON FEMA WEBSITE

FEMA website may take up to a week or longer to reflect a county is within a Declared Disaster Area. Subject properties located in proximity of recent natural disasters and are not yet reflected as a declared disaster on FEMA’s list will require the following prior to Gateway purchasing your loan:

  • A comprehensive property inspection with exterior photos in areas that have not been declared a disaster, to certify the property has not been damaged.
  • Other allowable inspection sources include:
    •  Appraiser
    • Homeowners Insurance Company
    • Licensed Home Inspection Company
  • 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’.

*Please note that if any area is eventually declared a disaster, the polices outlined below must be followed as written, and reinspection of properties in affected areas is required:

COUNTIES IN DECLARED DISASTER AREA AND APPRAISALS COMPLETED PRIOR TO THE 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’.

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.

COUNTIES IN DECLARED DISASTER AREA AND STREAMLINE PRODUCTS THAT DON’T TYPICALLY REQUIRE AN APPRAISAL

  • An exterior only inspection by one of the following is required:
    • Appraiser
    • Homeowners Insurance Company
    • Licensed Home Inspection Company
  • Repairs must be completed prior to closing and/or Gateway purchasing your loan, evidenced by a final inspection with photos.
  • On VA loans, lender and borrower to sign ‘VA Lender Certification for Disasters’.

Please direct any questions to your Regional Sales Manager

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