Bank Won't Close Due to FEMA Disaster Designation

Hello to all,

Need some lending advice.

Was supposed to close on a property on Thursday, with a Fannie Mae conventional loan. Had already signed etc. Bank was supposed to fund Thursday and official closing Friday. On Thursday the lender said they won't fund due to the property being in LA County and therefore a FEMA designated disaster area. The property is nowhere near any of the fires, but the bank won't budge until all fires are completely extinguished and a after disaster property inspection is done! There are no fires within a 10 mile radius of the property!

Is this normal? Or should we be looking for a different lender?

Seller is understandably getting really upset, because what the bank is asking for could take weeks and we were already supposed to have closed.

Any advice