Hurricane Sandy Re-Inspection Procedures

[box type=”info”]Important: Our underwriters will be conditioning for property re-inspections as conditions are cleared and approvals are updated. However, it would be a very good idea for brokers to identify which loans are in the affected areas (as indicated below) and be proactive and order the recertification through MMC on our website as soon as possible. Please note the counties have been updated below.[/box]

Payment of the re-inspections will be as follows:

  • Loans that were CTC prior to Hurricane Sandy (prior to 10/29) – Borrower will be charged for the re-inspection, but they will be fully reimbursed at closing via a lender credit.
  • Loans that were not CTC prior to Sandy – The borrower will be charged the cost of the re-inspection.

The following will summarize REMN’s Disaster Re-Inspection Policy.

DESIGNATED COUNTIES

  • The following is the list of FEMA designated counties that require inspections.    This list is subject to change. Please note the “incident date” to the right of each group.  This is per the FEMA list.
Connecticut Fairfield County, Mashantucket Pequot Indian Reservation, Middlesex County, New Haven County and New London County. Saturday – October 27th
New Jersey ENTIRE STATE Friday – October 26th
New York Bronx County, Kings County, Nassau County, New York County, Orange County, Putnam County, Queens County, Richmond County, Rockland County, Suffolk County, Sullivan County, Ulster County and Westchester County Saturday – October 27th

EFFECTIVE DATE AND WHAT REQUIRES AN INSPECTION

  • Any loan with an appraisal report dated on or before the incident date noted above requires a re-inspection.
  • Any loan with an appraisal report dated after the incident date noted above, must have a specific comment from the appraiser regarding the impact on value and marketability caused by the storm .
  • Loans where no appraisal report is required will still require a re-inspection before it can close.

GROUPS OF INSPECTIONS REQUIRED:

  • Loans that have closed (disbursement date of 11/2/12 and earlier)
    • REMN will order those re-inspections directly through MMC.    There is no need for anyone to do anything on those loans.
  • Loans that have not yet closed and/or have a disbursement date of 11/3/12 and later
    • If the file is not yet CTC:   the broker will be responsible to order a re-inspection report from MMC.
    • If the file is CTC:  we will allow a certification from the homeowner and borrower that there is no damage to the property, in order to facilitate the closing.    The re-inspection must still be ordered, but we will allow the loan to close with the certification signed and dated by the homeowner and borrower – and acknowledged by the closing agent.   If they are unwilling to sign the statement – then a re-inspection will be required before the loan can close.
      • I/We certify that the subject property has not been damaged or adversely affected by Hurricane Sandy.
    • BEFORE ORDERING INSPECTIONS:    If significant damage is confirmed – there is no reason to order the inspection until the damage has been repaired.

INSPECTION REQUIREMENTS – BASIC REPORT IF PROPERTY SUSTAINED NO DAMAGE

  • We will require the Disaster Inspection Report form to be completed.   The appraiser will need to note that there is no damage to the property and there is no negative impact to value or marketability.
    • Note:    “Damage” does NOT include things such as no power to the property and/or debris in close proximity to the property and/or on the lawn.

INSPECTION REQUIREMENTS –PROPERTIES WITH DAMAGE

  • If the appraiser cannot warrant that the property suffered no damage and/or that there is no negative impact to value and/or marketability, we will have to look at these on a case-by-case.    The appraiser will be required to make full comments regarding the extend of the damage – including interior and exterior photos.   Those will be sent to the underwriter to review and make a determination on a case-by-case basis.

 

 

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