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.
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