Both Freddie Mac and Fannie Mae are providing relief policies for borrowers who have been affected by the devastating tornado that struck Oklahoma and other nearby states earlier this week.
As part of the disaster relief policies, servicers can grant an
In addition, a servicer may temporarily suspend or reduce a homeowner’s mortgage payments if the servicer believes a natural disaster has adversely affected the value or habitability of the home or if the storm has impacted the homeowner's ability to make payments on their mortgage. Furthermore, eviction proceedings can be suspended for up to a year and no late fees will be charged against a borrower who missed their mortgage payments.
Under Fannie’s guidelines for single-family mortgages, servicers are expected to establish contact with homeowners who have been affected and determine if additional assistance is necessary, such as a loan modification within 90 days.
“Our servicers are required to offer assistance to homeowners who have been affected by a natural disaster,” said Leslie Peeler, senior vice president, national servicing organization, Fannie Mae. “We know that many people have had their lives impacted as a result of this tornado and our thoughts and prayers are with them. We will work with our servicers to make sure they are providing the appropriate options to borrowers.”
As of Tuesday, President Obama named the following counties in Oklahoma as a disaster area to receive federal funding: Cleveland, Lincoln, McClain, Oklahoma and Pottawatomie. Freddie Mac’s disaster relief policies authorize mortgage servicers to help affected borrowers in presidentially declared major disaster areas where federal individual assistance programs have been extended.
“Freddie Mac is urgently reminding the nation’s mortgage servicers about the full range of mortgage relief options they can provide to affected borrowers with mortgages we own or guarantee, including forbearance on mortgage payments for up to one year,” said Tracy Mooney, senior vice president of single-family servicing and real estate owned at Freddie Mac. “We strongly encourage borrowers to contact their servicers, who are fully authorized to work with them on a case-by-case basis.
