Fannie Mae Reminds Servicers of Options for South Carolina Homeowners
Investor Update
October 6, 2015
Resources available for victims of flooding
WASHINGTON, DC – Fannie Mae (FNMA/OTC) is reminding servicers of options that are available to homeowners affected by flooding in South Carolina. Under Fannie Mae’s existing guidelines, servicers have the ability to grant forbearance to any borrower they believe has been affected by a natural disaster. Within ninety days, servicers are expected to establish contact with homeowners who have been affected and determine if additional assistance is needed. If a borrower’s longer-term financial situation is affected by the flooding, then servicers can offer additional options, such as a loan modification.
“We understand the disruption a natural disaster can have on people’s lives and we expect servicers to offer help to those who have been affected,” said Malloy Evans, Vice President of Credit Portfolio Management at Fannie Mae. “We want to ensure servicers have the resources and information to move quickly in providing assistance to homeowners in South Carolina. Our thoughts and prayers 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 may make it difficult to reach homeowners, Fannie Mae allows servicers to grant this temporary relief even if they cannot contact the impacted homeowner immediately. Upon establishing contact with a homeowner, the servicer may offer forbearance for 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 to find 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
