Fannie Mae has said that servicers may immediately suspend or reduce mortgage payments for borrowers whose properties or income are negatively impacted by the Gulf oil spill.
Under the company’s ‘Special Relief Measures’ policy, servicers may suspend or reduce a borrower’s payments for up to 90 days while the servicer will determine the nature and extent of the impact the disaster is having on the condition of the property or on the borrower’s financial condition.
At the conclusion of that assessment, servicers will have additional flexibilities to evaluate the appropriate loss mitigation alternative based on a case-by-case determination, including an additional three months of forbearance, a loan modification or other customized solution.
Michael Williams, president and CEO of Fannie Mae, said: “We want to give homeowners every opportunity to weather this unprecedented disaster, including relief from their mortgage payment if that will help them get back on their feet and stay in their homes. Our policy is in place to support those who are experiencing a disaster-related hardship through no fault of their own and are acting in good faith to meet their mortgage obligation.”