FNMA Options in Natural Disaster Areas
Investor Update: On October 30, Fannie Mae released an announcement entitled Fannie Mae Reminds Servicers, Borrowers of Options in Natural Disaster Areas.
Fannie Mae Reminds Servicers, Borrowers of Options in Natural Disaster Areas
Fannie Mae (FNMA/OTC) is reminding servicers of options that are available to homeowners affected by natural disasters in the wake of Hurricane Sandy. Under Fannie Mae’s existing guidelines, servicers have the ability to grant forbearance to any borrower they believe has been affected by a natural disaster. Within ninety days, servicers are expected to establish contact with homeowners who have been affected and determine if additional assistance is necessary.
"We understand the disruption that a storm such as Sandy can have on people’s lives, and we’ve made it easy for our servicers to offer relief to those who need it," said Leslie Peeler, senior vice president, National Servicing Organization, Fannie Mae. "Servicers are on the front lines with homeowners and we are grateful for their efforts to help borrowers. Our thoughts and prayers are with all of those who have been affected by the storm."
Under Fannie Mae’s disaster relief guidelines, a servicer may temporarily suspend or reduce a homeowner’s mortgage payments for up to ninety days if the servicer believes a natural disaster such as Hurricane Sandy has adversely affected the value or habitability of the property or if the natural disaster has temporarily impacted the homeowner's ability to make payments on their mortgage. Since a storm may make it difficult to reach homeowners, Fannie Mae allows servicers to grant this temporary relief even if they cannot contact the impacted homeowner immediately.
Borrowers can reach out to their servicer to pursue assistance. In addition, homeowners can reach out to Fannie Mae through one of twelve Mortgage Help Centers located across the country. Contact information can be found at www.knowyouroptions.com or by calling 1-800-7FANNIE (1-800-732-6643).
Fannie Mae exists to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to enhance the liquidity of the mortgage market by providing funds to mortgage bankers and other lenders so that they may lend to home buyers. Our job is to help those who house America.
To view the online announcement, please click here.
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