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 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, Fannie Mae advises homeowners who have experienced hardships to contact the lender to whom they send their monthly mortgage payment.

Fannie Mae is a shareholder owned corporation with a federal charter to expand access to home ownership. The company buys mortgages, repackages them and sells them to investors.

***

Send tips or a Letter to the Editor to jessica@inman.com or call (510) 658-9252, ext. 133.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Time is running out to secure your Connect Now tickets at the lowest price. Don't miss out on a chance to grow yourself and your business.Learn More×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription