Industry News

Fannie Mae offers relief for Hurricane Katrina victims

Real estate loan payments can be suspended

Fannie Mae is offering mortgage relief for borrowers in Mississippi, Louisiana, Alabama, Florida and other states facing hardships from damage caused by Hurricane Katrina, the mortgage giant announced Monday. With Fannie Mae's disaster relief provisions, lenders can help borrowers in several ways. These include suspending mortgage payments for up to three months, reducing the payments for up to 18 months, or in more severe cases, creating longer loan payback plans. Such assistance is provided on a case-by-case basis, and is designed to meet the individual needs of borrowers, Fannie Mae said in a statement. "What matters most to hurricane victims in those first few days after a storm hits is basic safety and survival, not concerns about making their next mortgage payment," said Pam Johnson, senior vice president and single family credit officer at Fannie Mae. "Fannie Mae has made changes to its insurance requirements that will ease the process for lenders and, more importantly, provid...