Properties affected by Natural Disasters

Before Homium will close and fund a loan where the property may have been damaged by a disaster, the underwriter is expected to take prudent and reasonable actions to determine whether the condition of the property may have materially changed. The underwriter is responsible for determining if an inspection of the property and/or new appraisal is necessary to support this determination. If a property is located in a condo or co-op project, both the condition of the unit and the condition of the building in which the unit is located must be assessed.

Underwriters should use the following criteria when determining if the loan can be closed and funded by Homium:

• If the property has been damaged and the damage does not affect the safety, soundness, or structural integrity of the property and the repair items are covered by insurance, Homium may close and fund a loan. In these circumstances, the underwriter must obtain documentation of the professional estimates of the repair costs and must ensure that sufficient funds are available for the borrower's benefit to guarantee the completion of the repairs.

• If the property was damaged and the damage is uninsured or the damage affects the safety, soundness, or structural integrity of the property, the property must be repaired before the loan is closed and funded with Homium.