Fannie Mae: Lender Letter LL-2017-09: Fannie Mae Extends Modification for Disaster Relief and Other Clarifications for Mortgage Loans Impacted by Disaster Events
November 2, 2017
Fannie Mae continues to support servicers working with borrowers impacted by recent disasters, including hurricanes on or after Aug. 25 and the California wildfires. Today, we published Lender Letter LL-2017-09 to provide policy guidance for loans secured by properties located in a Federal Emergency Management Administration (FEMA) Declared Disaster Area eligible for Individual Assistance. This lender letter:
- Provides guidance for an additional relief offering for borrowers, the Extend Modification for Disaster Relief — a new, temporary workout option following the end of a forbearance period;
- Simplifies the process for getting insurance funds directly to the borrower and reduces the frequency of inspections to monitor repairs;
- Describes the policy for servicers to request reimbursement from Fannie Mae for inspections to confirm repairs on properties with an insured loss event; and
- Clarifies the terms of acceptable payment records when a borrower impacted by a disaster requests termination of conventional mortgage insurance.
The Lender Letter provides details. Visit the Assistance in Disasters page for additional information and resources, including previous disaster-related Lender Letters, FAQs, and more.
Source: Fannie Mae
Safeguard Properties (California Wildfires All Client Alert summary page)
Safeguard Properties (Hurricane Nate All Client Alert summary page)
Safeguard Properties (Hurricane Maria All Client Alert summary page)
Safeguard Properties (Hurricane Irma All Client Alert summary page)
Safeguard Properties (Hurricane Harvey All Client Alert summary page)