Fannie Mae Reminds Homeowners and Servicers of Options for Areas Affected by the Midwest Flooding
January 5, 2016
WASHINGTON, DC – Fannie Mae (FNMA/OTC) is reminding those affected by the floods in the Midwestern parts of the country of the options available for mortgage assistance. Under Fannie Mae’s guidelines for single-family mortgages, servicers have the ability to grant an initial period of forbearance to any borrower they believe has been affected by this natural disaster. Additional forbearance is available with approval from Fannie Mae. In addition, Fannie Mae guidelines authorize servicers to delay foreclosure sales and other legal proceedings in these areas.
“We understand the disruption that a natural disaster such as the flooding in the Midwest can have on people’s lives,” said Malloy Evans, Vice President of Servicing at Fannie Mae. “Fannie Mae servicers are expected to offer the appropriate assistance to families affected by these floods. Our thoughts are with all of those who have been impacted.”
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 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 these events can make it difficult to reach homeowners, Fannie Mae allows servicers to grant this temporary relief even if they cannot contact the impacted homeowner immediately. If a servicer establishes contact with a homeowner, the servicer may offer forbearance for up to six months, which may be extended for an additional six months, for those homeowners that were current or ninety days or less delinquent when the disaster occurred.
In addition, lenders who are originating loans that will be sold to Fannie Mae are reminded that they must verify the condition of the property if it is in the area affected by flooding. Additional lender guidelines can be found here.
Borrowers should reach out to their servicer as soon as possible for assistance. In addition, homeowners can reach out to Fannie Mae directly by calling 1-800-7FANNIE. For more information, visit http://www.knowyouroptions.com/relief.
Source: Fannie Mae