Fannie Mae urges California homeowners to seek disaster relief

Homeowners can pause mortgage payments for 12 months

Fannie Mae urges California homeowners to seek disaster relief

Homeowners and renters affected by natural disasters, including the wildfires sweeping through Southern California, are being encouraged by Fannie Mae to seek mortgage assistance and disaster relief resources.

At the same time, the organization is reminding mortgage servicers of their role in supporting impacted borrowers under its disaster-response guidelines.

"We are monitoring the Southern California wildfires, and we urge those in the path of the fires to focus on their safety," said Cyndi Danko, senior vice president and chief credit officer or Single-Family at Fannie Mae.

Danko stressed the importance of homeowners reaching out to their mortgage servicers for support and highlighted the availability of disaster recovery counseling services, which are provided at no cost.

Under Fannie Mae’s guidelines, homeowners may be eligible for forbearance plans that allow them to reduce or suspend mortgage payments for up to 12 months. During this period, late fees are waived, and foreclosure or other legal proceedings are put on hold. If a mortgage servicer cannot establish contact with a homeowner but believes their property has been affected by a disaster, the servicer may offer a forbearance plan of up to 90 days.

Once the forbearance period ends, homeowners can explore options to address missed payments without requiring a lump sum. These include the Disaster Payment Deferral program and the Fannie Mae Flex Modification, which aim to help borrowers resolve delinquencies.

Fannie Mae also provides resources to assist renters and homeowners in navigating the broader financial challenges caused by disasters.

Its free disaster recovery counseling, available at 855-HERE2HELP (855-437-3243), connects users with US Department of Housing and Urban Development-approved housing counselors. The services include needs assessments, personalized recovery plans, assistance with applications for relief from government agencies or insurers, and ongoing guidance for up to 18 months. Support is offered in multiple languages to reach a wider audience.

As natural disasters continue to disrupt lives, how effective do you think these relief measures are in helping those affected? Share your thoughts in the comments.