Question: In furtherance of the numerous recent natural disasters, have there been any recent policy announcements for Properties Located in Presidentially-Declared Major Disaster Areas (PDMDAs)?
Answer:
Yes. on June 27, 2025, HUD published Mortgagee Letter 2025-19 Rescission of Mandatory Pre-endorsement Inspection Requirements for Properties Located in Presidentially-Declared Major Disaster Areas (PDMDAs) eliminating pre-endorsement PDMDA inspection requirements. HUD advised such requirements were unnecessary and burdensome.
Previously, FHA required damage inspection reports prior to endorsement for all properties located in PDMDAs (even if no damage occurred). FHA required the inspections to be completed by FHA Roster Appraisers, which sometimes resulted in a lengthy waiting periods and delayed closings.
FHA now defers to a lender’s discretion to determine the property condition and scope of inspections and repairs following a disaster event based on the lender’s own risk management practices and tolerances.
The provisions of the Mortgagee Letter were effective immediately. .
