Closing and funding of loans in Butte, Los Angeles and Ventura counties in CA.
As of November 12, 2018, FEMA has issued a disaster declaration with an incident date of November 8, 2018 for Butte, Los Angeles and Ventura counties in California.
As of the close of business today New Penn Financial is suspending the closing and funding of loans in Butte, Los Angeles and Ventura counties in California.
We are taking the following steps outlined below and will continue monitoring the fires. We will provide additional updates when FEMA designates an end date, and the suspension can be lifted. Our primary concern is the safety of all of those who may be impacted by these fires and we pray for their safety.
What you should know:
- As of the close of business today New Penn Financial is suspending the closing and funding of loans in Butte, Los Angeles and Ventura counties in California.
- New Penn Financial will extend rate locks on all loans in the impacted counties, until Friday, November 23, 2018 at no cost to the borrower. We will monitor the need for additional extensions at no cost in the coming days
- Inspections should not be ordered until an end date has been issued by FEMA
Once the suspension has been lifted:
- DRIVE will issue a condition for disaster inspections for loans that fall within impacted areas designated by FEMA as eligible for individual assistance.
- New Penn will continue to fund loans so long closings are able to occur and borrowers have acceptable insurance policies in place.
- Loans that are currently in receipt of Fannie Mae’s Appraisal Waiver will require a full interior/exterior appraisal if the property falls within an impacted disaster area and has not funded prior to the start date of the disaster.
- Loans that are currently in receipt of Freddie Mac’s Appraisal Waiver will allow appraisal waivers, with an exterior inspection with photos evidencing the property is free from damage and the disaster had no effect on the value or marketability.
- Refinances currently in the rescission period at the start of the disaster period and fall within an impacted area will be funded as scheduled. New Penn Financial Corporate will order any required disaster inspections.
- Loans that have not yet gone to closing and fall into impacted areas will require the appropriate inspection as outlined in New Penn Financial’s Disaster Policy.