WASHINGTON , Oct. 6, 2017 /PRNewswire/ — In our ongoing efforts to support victims of natural disasters, Fannie Mae (OTC Bulletin Board: FNMA) is reminding those in areas impacted by projected and recent Hurricanes Nate, Maria, Irma, and Harvey of the options available for mortgage assistance.
Homeowners impacted by recent hurricanes are currently eligible to temporarily stop making monthly mortgage payments for three-month intervals (up to 12 months). At the end of this temporary payment break, homeowners:
- Will not incur late fees.
- Will not have delinquencies reported to the credit bureaus.
- Will not be forced to catch up on all payments at once.
- Can work with their servicer to resume making a mortgage payment that is similar to what was being paid before the disaster. Or, if homeowners need additional assistance, they can work with their servicer on options to keep their home.
Under Fannie Mae’s existing guidelines and extended relief flexibilities for all hurricanes occurring in the U.S. and its territories on or after August 25, 2017 and through the 2017 hurricane season:
- Servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact with the homeowner if the servicer believes the homeowner has been affected by a disaster. Additional payment forbearance of up to 12 months is available in many circumstances.
- Servicers must suspend foreclosure and other legal proceedings if the servicer believes the homeowner has been impacted by a disaster.
- Lenders and servicers will be reimbursed for the costs associated with inspecting properties impacted by the storms.
- Credit underwriting and appraisal documents can be up to 180 days old at time of closing.
- Additional guidelines for mortgage assistance options can be found here.
“We want to ensure those in the path of these storms have peace of mind and time to focus on their safety. Fannie Mae and our lending and servicing partners are focused on ensuring assistance is offered to individuals and families in need,” said Carlos Perez , Senior Vice President and Chief Credit Officer at Fannie Mae.