Fannie Mae Disaster Assistance Reminder
On June 5, Fannie Mae released an update reminding servicers of policies that have been put in place to assist impacted borrowers following a disaster.
Providing Assistance to Borrowers Following a Disaster
Servicers are reminded that Fannie Mae has selling and servicing policies to assist impacted borrowers (or potential borrowers) following a disaster, such as the recent flooding in Texas and Oklahoma. Refer to Assistance in Disasters for information on where to find Fannie Mae’s policies for providing assistance to borrowers impacted by a disaster:
Following a disaster, we rely on our customers to implement our disaster relief policies and assist impacted homeowners. We require servicers to assess property damage and the needs of homeowners in order to provide appropriate relief. In addition, our Account Teams work closely with our customers to determine physical and operational impacts to their business operations and their ability to service mortgages owned or guaranteed by Fannie Mae.
How to Respond in the Event of a Disaster
Look for Fannie Mae Announcements
When a significant disaster occurs that adversely affects either the value or habitability of mortgaged properties or borrower’s ability to make further payments or payments in full on mortgage loans, we may issue special announcements such as press releases, Guide Announcements, Lender Letters, or Notices with updates or temporary relief policies.
Refer to the Selling Guide and Servicing Guide
For mortgage loans not yet acquired by Fannie Mae, the Selling Guide describes our policies related to properties affected by a disaster. We also provide relief by providing lenders with mortgage loan flexibilities for borrowers seeking a mortgage loan following a disaster. Our servicing policies related to disasters are included the Servicing Guide and may be amended by Servicing Guide Announcements or Lender Letters.
Where to Find Selling Guide Requirements for Disaster Relief
Our selling policy covering disasters can be found in the Selling Guide in the following topics:
- B2-3-05, Properties Affected by a Disaster;
- B3-4.3-07, Disaster Relief Grants or Loans;
- B5-4-02, Disaster-Related Limited Cash-Out Refinance Flexibilities; and
- B5-5.2-01, DU Refi Plus and Refi Plus Eligibility.
In addition, borrowers may use lump-sum disaster-relief grants or loans to satisfy Fannie Mae’s minimum borrower contribution requirement.
Where to Find the Servicing Guide Requirements for Disaster Relief
Our servicing policy covering disasters can be found in the Servicing Guide in Chapter D1-3: Providing Assistance to a Borrower Impacted by a Disaster.
Please click here to view Assistance in Disasters online.
Safeguard Properties is the mortgage field services industry leader, preserving vacant and foreclosed properties across the U.S., Puerto Rico, Virgin Islands and Guam. Founded in 1990 by Robert Klein and headquartered in Cleveland, Ohio, Safeguard provides the highest quality service to our clients by leveraging innovative technologies and proactively developing industry best practices and quality control procedures. Consistent with Safeguard’s values and mission, we are an active supporter of hundreds of charitable efforts across the country. Annually, Safeguard gives back to communities in partnership with our employees, vendors and clients. We also are dedicated to working with community leaders and officials to eliminate blight and stabilize neighborhoods. Safeguard is dedicated to preserving today and protecting tomorrow. Website: www.safeguardproperties.com.