Fannie Mae: Lender Letter LL-2017-03: Servicing Policies for Mortgage Loans Impacted by Hurricane Harvey
Investor Update
August 29, 2017
As we work together to support the victims of Hurricane Harvey, servicers are reminded that Fannie Mae has servicing policies to assist impacted borrowers following a disaster. For updated guidance, refer to Lender Letter LL-2017-03: Servicing Policies for Mortgage Loans Impacted by Hurricane Harvey and visit our Assistance in Disasters page for information about our policies for providing assistance to borrowers impacted by a disaster.
Lender Letter LL-2017-03
Servicing Policies for Mortgage Loans Impacted by Hurricane Harvey
In an effort to support the victims of Hurricane Harvey, we are reminding servicers that we have policies in Servicing Guide Chapter D1-3 to assist impacted borrowers following a disaster. Effective immediately, servicers must suspend any foreclosure sale on a property located within the FEMA-declared disaster area eligible for Individual Assistance as a result of Hurricane Harvey for 90 days from the date the disaster is declared. Also, we are imposing a 90-day eviction suspension on REO properties located within the FEMA-declared disaster area eligible for Individual Assistance as a result of Hurricane Harvey. The suspension covers all steps of eviction during this period.
When applicable, servicers must receive pre-approval by the mortgage insurer or guarantor to avoid jeopardizing benefits of any applicable insurance or guaranty.
We will continue to monitor the situation and reevaluate our requirements as circumstances dictate. In addition, we will issue a selling policy-related lender letter shortly.
Effective Date
Servicers must implement the moratoriums outlined above immediately.
Contact your Customer Delivery Team, Portfolio Manager, or Fannie Mae’s Single-Family Servicer Support Center at 1-800-2FANNIE (1-800-232-6643) with any questions regarding this Lender Letter.
Carlos T. Perez
Senior Vice President and
Chief Credit Officer for Single-Family
Source: Fannie Mae
Additional Resource:
Safeguard Properties (Hurricane Harvey All Client Alert summary page)