Industry News

Mortgage relief for Hurricane Dennis victims

Fannie Mae sets provisions for borrowers facing hardship

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Fannie Mae said on Monday that it has mortgage relief provisions in place for Florida borrowers facing hardships as a result of damage caused by Hurricane Dennis. Fannie Mae's disaster relief provisions give lenders the discretion to help borrowers 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. All changes will be made on a case-by-case basis, the mortgage finance company said. Fannie Mae's business guidelines also advise lenders to counsel borrowers on all possible mortgage payment workout options, and to inform homeowners of disaster relief available from federal agencies. Payment relief is available for single-family mortgages (including condos) serviced by Fannie Mae lenders in areas affected by the hurricane. Holders of Fannie Mae mortgage securities will be paid as usual during the relief period. Mortgage lenders doing business with Fann...