18-08: Disaster Policy Implementation- Southern California Thomas Fire and Mudslides
FEMA has recently declared 4 counties in Southern California as eligible for disaster related Individual Assistance. PennyMac will require post-disaster inspections for specific areas impacted by the Thomas Fire, Creek Fire, La Tuna Fire, Lilac Fire, and the resulting mudslides. This includes loans without an appraisal such as DU Refi Plus, LP Open Access and FHA streamline which will require an eligible inspection product for a period of 90 days from the incident period based on note date.
The disaster incident start date is December 4, 2017 and remains ongoing. Lenders are reminded that in addition to PennyMac purchase requirements, all agency guidelines must also be met, including FHA and VA insuring requirements relative to disaster reinspections. FHA has issued a waiver for the Southern California areas impacted by the wildfires and will accept post-disaster inspections dated on or after January 18, 2018. VA requires the lender to determine the property is still acceptable.
Lenders must take prudent actions to determine whether the condition of any property has materially changed after the effective date of the appraisal if the property may have potentially been damaged by a disaster.
For complete details, please refer to the PennyMac Disaster Policy located in the PennyMac Seller’s Guide on www.gopennymac.com.
Please contact your Sales Representative with any questions.