October 4, 2017
CUA 2017-06 - Properties in Areas Impacted by Hurricanes Harvey and Irma - Effective Immediately
Note: The items addressed in this bulletin will apply to any hurricanes during the 2017 season.
Recognizing the delays that Hurricanes Harvey and Irma will cause to the mortgage loan process, Arch MI is allowing the following flexibilities for certain new mortgage insurance submissions and outstanding Commitments for properties located in the impacted areas. These flexibilities apply when:
- The Loan Application (Form 1003/Form 65) is dated on or before August 25, 2017, for Hurricane Harvey and September 10, 2017, for Hurricane Irma; and
- Impacted area: The subject property is located in a county declared a disaster area by the Federal Emergency Management Agency (FEMA) that is eligible for individual or public assistance due to Hurricanes Harvey or Irma.
Extended Time Periods for Age of Documentation and Rate Quotes
- Age of documentation is being extended to 180 days (from 120 days). This is consistent with Fannie Mae’s and Freddie Mac’s allowances for age of documentation when the property is located in an impacted area.
- Rate Quote:
- Loans submitted under an Arch MI Master Policy: The RateStar℠ quote period is being extended to 120 days (from 90 days).
- Loans submitted under a United Guaranty Master Policy: United Guaranty’s Secure Quote® quote period is being extended to 120 days (from 90 days).
Note: A manual premium rate adjustment to the Commitment will be necessary to apply the extended Secure Quote period. Please contact Arch MI’s customer service team to request the premium rate adjustment. Please have your Arch MI Certificate number and Secure Quote Number handy to assist with the request.
Phone: 877-642-4642, Option 1, Option 1
Request to Extend Commitments:
For active or recently expired Commitments, the term of a Commitment will be extended up to 60 days if age of documentation is ≤180 days. Please contact Arch MI’s Loan Servicing team at firstname.lastname@example.org or 877-642-4642 (Option 2) for assistance.
- Property Inspections: Under the terms of the Master Policy, the credit union (the Insured) is contractually responsible to ensure that the property value and condition have not been negatively impacted by the disaster (this is true for all loans, including those located in FEMA-declared disaster areas). Arch MI does not require the credit union to provide a recertification of value or property inspection with a non-delegated MI submission. However, it is recommended that credit unions take prudent action to determine the property has not been damaged or the value has not been negatively impacted.
- Property Inspection Waivers (PIW): Arch MI aligns with Fannie Mae’s requirements for the use of a PIW. For any property located in a county declared a FEMA disaster area that is eligible for individual assistance for which a PIW was offered and the loan was still in process (had not closed) as of August 25, 2017, for Hurricane Harvey and September 10, 2017, for Hurricane Irma, the PIW offer is now invalid and an appraisal is required.
- Existing Commitments:
- For loans that were submitted non-delegated, the credit union must send the appraisal to Arch MI for review.
- For loans submitted delegated, there is no need for the credit union to send the appraisal to Arch MI for review. However, the appraisal must be retained in the credit union’s loan file and be available for quality control review, independent validation review or claim requests.
- New Non-Delegated Submissions: For any loan with a property in one of these counties, regardless of the date of the DU® Findings Report, an appraisal is required.
For more information, please contact your Arch MI Account Executive.
© 2017 Arch Mortgage Insurance Company. All Rights Reserved. Arch MI is a marketing term for Arch Mortgage Insurance Company. United Guaranty is a marketing term for United Guaranty Residential Insurance Company and United Guaranty Mortgage Indemnity Company. Coverage is available through admitted company only. RateStar is a service mark and United Guaranty’s Secure Quote is a registered mark of Arch Capital Group (U.S.) Inc. or its affiliates. DU is a registered mark of Fannie Mae.