GSEs Provide Hurricane Relief

Both Fannie Mae and Freddie Mac are providing mortgage relief for Florida borrowers facing hardships as a result of the widespread flooding and damage caused by Hurricane Charley.Fannie Mae is giving lenders the discretion to help victims of the hurricane in several ways, including suspending mortgage payments for up to three months, reducing the payments for up to 18 months, or in more special cases, creating longer loan payback plans. Mortgage lenders doing business with Fannie will determine appropriate relief steps by considering any uninsured losses, extended unemployment and extraordinary expenses related to the storms that affect mortgage payments. Freddie Mac is encouraging servicers to reduce or suspend mortgage payments for up to 12 months for borrowers whose mortgages are owned by Freddie Mac. Freddie is also advising servicers to waive the assessment of penalties or late fees against borrowers with disaster-damaged homes, not report forbearance or delinquencies caused by the disaster to the nation's credit bureaus, and expedite the release of insurance proceeds.