Fannie Mae mandates servicers to suspend or reduce mortgage payments
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Fannie Mae has announced that victims of the Missouri River flooding are eligible for available mortgage assistance options.
The GSE said that affected homeowners can apply for payment forbearance of up to 12 months. During this temporary payment break, they will not acquire late fees nor will they have delinquencies reported to the credit bureaus.
Fannie Mae also authorized servicers to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days. If the servicer believes the disaster has impacted the homeowner, he could do so even without any contact with the homeowner. Payment forbearance of up to 12 months is available in multiple circumstances.
Lastly, Fannie Mae said servicers must suspend foreclosure and other legal proceedings if the servicer thinks the disaster has hit the homeowner.
"Our thoughts are with the impacted families and communities of the Missouri River Basin as they begin to recover from this severe hardship," said Malloy Evans, vice president and chief credit officer at Fannie Mae. "Fannie Mae wants to ensure that all those affected are aware of their mortgage assistance options. Homeowners should always prioritize safety first, but we encourage those affected by the disaster to contact their mortgage servicer to discuss assistance options as soon as possible."
