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c. Properties Located in Presidentially-Declared Major Disaster Areas Before
Endorsement (06/27/2025)
The Mortgagee must exercise reasonable due diligence to determine if additional inspections or repairs are necessary before endorsement for all Properties with pending Mortgages or endorsements in areas under a Presidentially-Declared Major Disaster Area (PDMDA) designation for individual assistance. The Mortgagee must determine if a PDMDA will have an adverse effect on the Property’s ability to serve as collateral for the Mortgage.
If repairs are required, they must be completed prior to endorsement, unless the Property is habitable and a repair escrow has been established in accordance with Repair Completion Escrow Requirements.
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II. ORIGINATION THROUGH POST-CLOSING/ENDORSEMENT A. Title II Insured Housing Programs Forward Mortgages
7. Post-closing and Endorsement
The Mortgagee must document any information relied upon to make their determination if additional inspections or repairs are necessary. If applicable, copies of any inspections and evidence of repairs or the repair escrow must be included in the Case Binder.
Streamline Refinances are allowed to proceed to closing and/or endorsement without any additional requirements.