As of today, October 10, 2018, Hurricane Michael has begun hitting parts of the Florida panhandle, with heavy rainfall expected along the northeastern Gulf Coast.
We are taking the following steps outlined below and will continue monitoring the storm. We will provide additional updates as more certainty of the path and any impacted areas become available. Our primary concern is the safety of all of those who are in the current storm path and we pray for their safety.
What you should know:
- As of the close of business today New Penn Financial is suspending the funding of loans in the following Florida counties until further notice.
- New Penn Financial will extend rate locks on all loans in the impacted counties, until Wednesday, October 17, 2018 at no cost to the borrower. We will monitor the need for additional extensions at no cost in the coming days, including other states that may be affected.
- Additional communication will be sent out with impacted areas and loans that fall into those impacted areas when known
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. However, consideration to rescheduling should be given to ensure our borrowers are safe and not in harm’s way.
- Many insurance companies will begin or have already suspended writing new policies. New Penn Financial will not make exceptions to permit a loan to close without a subject property being covered by an active insurance policy that meets applicable requirements.
- Loans that are currently in receipt of Fannie Mae’s Appraisal Waiver or Freddie Mac’s ACE 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.
- 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 New Penn Financial Disaster Policy - Section 3.14.
As with all disasters, the affected areas are not definitively confirmed until FEMA formally designates such areas which occurs following the completion of the storm. We will continue to monitor FEMA announcements to update the loans requiring a disaster inspection as specific counties are announced and provide updates as additional information is received over the coming days.