September 17, 2021
*Reissue Lender Bulletin 2021-8: Hurricane Ida Disaster Appraisal Requirements
Effected Programs: All Programs
Effective Date: Immediately
Due to the current health concerns related to COVID-19, the vast majority of NJHMFA staff will be operating on a hybrid work schedule until further notice. Please contact Agency staff via their work email address. NJHMFA encourages all of our business partners and constituents to submit any and all documentation in an electronic format whenever possible as staff will continue to check email and review information submitted electronically.
Attention Lenders: This bulletin details temporary adjustments to the NJHMFA Single Family Lending Appraisal Requirements Due to the Federally Declared Hurricane Ida Disaster

The Federal Emergency Management Agency (FEMA) has issued a Major Disaster Declaration for parts of New Jersey, due to Hurricane Ida. In accordance with investor guidelines and industry standards, NJHMFA has determined the need to temporarily adjust the appraisal and inspection requirements to account for loans in FEMA-Designated Disaster Areas. The following requirement pertains to all loans prior to loan purchase by NJHMFA, even if the loan has already closed and been delivered to NJHMFA for pre-purchase review.

1)    If a property is located in a FEMA Declared Disaster Area and the property appraisal was performed after the FEMA Declaration for Hurricane Ida, no additional inspection or appraisal is required.
2)    If a property is located in a FEMA Declared Disaster Area and the property appraisal was performed prior to Hurricane Ida, NJHMFA will require an additional external property inspection, or “drive by” appraisal be performed before the loan is eligible for purchase.
  • a.     If the external appraisal shows significant damage, a review of the interior of the property is required and damage must be repaired prior to closing and/or purchase by NJHMFA.
  • b.     If the external appraisal shows no damage or minor/cosmetic damage, a review of the interior of the property is not required.

3)    If the property is not located in a FEMA Declared Disaster Area, no additional property inspection is required, but lenders should note that FEMA may continue to add additional counties to the Disaster Area.
Fees for additional inspection or appraisal product should not be charged to the borrower without valid change of circumstance (COC). Lenders should cover the costs or be able to have their Legal/Compliance Division evidence the appropriate COC.

PLEASE NOTE: Insurer/Investor/Guarantor guidelines must be reviewed and adhered to by the lender. Wherever the above requirement differs from the insurer/investor/guarantor guidelines, the stricter requirement will prevail.
Questions? Need Help? 
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New Jersey Housing and Mortgage Finance Agency | 609-278-7400 |