FNMA Lender Letter LL-2012-09 Flexibility for Sandy Impacted Loans

Investor Update: On November 13, Fannie Mae released Lender Letter LL-2012-09, subtitled Additional Flexibilities for Mortgage Loans Impacted by Hurricane Sandy.

Lender Letter LL-2012-09

To: All Fannie Mae Single-Family Sellers and Servicers

Additional Flexibilities for Mortgage Loans Impacted by Hurricane Sandy

As the northeast part of the country continues to recover from the effects of Hurricane Sandy, Fannie Mae is continuing to support lenders and servicers as they attempt to handle the underwriting and servicing of mortgage loans affected by the storm. Fannie Mae recently issued a Selling Guide Announcement that established new disaster policies pertaining to property inspections and new appraisals, and a Servicing Notice that provided disaster assistance guidance for borrowers who were affected by Hurricane Sandy.

Fannie Mae is now offering additional flexibilities for mortgage loans affected by Hurricane Sandy, as defined by the Federal Emergency Management Agency (FEMA). FEMA has designated disaster areas that are eligible for individual assistance as a result of Hurricane Sandy. Lenders and servicers must continue to monitor the FEMA website as new eligible disaster areas continue to be identified as damage assessments and processing of requests for federal assistance are completed.

This Lender Letter describes updates to the following policies for mortgage loans impacted by Hurricane Sandy:


  • Pricing
  • Age of Credit and Appraisal Documentation
  • Clarification of Announcement SEL-2012-12, Disaster Policy and Updates to DU Refi Plus and Refi Plus Property Policies


  • Forbearance
  • Discontinuance of Legal Action
  • Special Relief Measures
  • Delays in Closing
  • Borrower Income Documentation
  • Insurance Claims
  • Deposit of Insurance Proceeds
  • Waiving of Late Fees
  • Reporting to Credit Bureaus
  • Bidding Instructions

To view LL-2012-09 in its entirety, please click here.

About Safeguard
Safeguard Properties is the largest privately held field services company in the country. Located in Cleveland, Ohio and founded in 1990 by Robert Klein, Safeguard has grown from a regional preservation company with a few employees  and a handful of contractors performing services in the Midwest, to a national company with more than 1,600 employees. Safeguard is supported by a nationwide network of subcontractors able to perform any requested superintendence, preservation, and maintenance functions, as well as numerous ancillary services in the U.S., the Virgin Islands, and Puerto Rico.


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