Fannie Mae, the nation’s largest source of financing for home mortgages, has mortgage relief provisions in place for West Virginia borrowers facing hardships as a result of widespread flooding and mudslides caused by severe storms over the Memorial Day weekend.
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.
Fannie Mae’s business guidelines also advise lenders to counsel borrowers on all possible mortgage payment work-out 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 storms. Holders of Fannie Mae mortgage securities will be paid as usual during the relief period.
Mortgage lenders doing business with Fannie Mae will, according to Fannie Mae’s guidelines, determine appropriate relief steps by considering any uninsured losses, extended unemployment, and extraordinary expenses related to the storms that affect mortgage payments.
For information on mortgage relief, homeowners who have experienced hardships should contact the lender to whom they send their monthly mortgage payment.
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