Another alliance between the
military and housing forces was announced yesterday as Fannie Mae and the U.S.
Army introduced a Military Forbearance Initiative to assist service members
keep their homes.
Like other forbearance programs offered to Fannie Mae borrowers,
the military version is an agreement between borrower and mortgage company to
suspend or reduce mortgage payments for a period that allows the borrower to
deal with short term financial problems.
Under the new program it will be possible to obtain forbearance for a
longer period - up to six months, and adverse reports to credit bureaus are
suspended during the forbearance period.
The program is designed to assist
an injured service member or spouse who is facing financial hardship because of
a service related injury or losing a partner on active duty. The option is available to borrowers who are unable
to refinance and/or are behind on their mortgage payments.
To augment the forbearance
program, Fannie Mae has set up a hotline and a website and has produced printed
materials for distribution on military facilities that explain the program and
assists military families in utilizing it.
Persons in need of assistance are encouraged to call the hotline at 877-MIL-4566
or visit www.KnowYourOptions.com/Military
"The men and women of
our Armed Forces have shown extraordinary commitment to our country while
facing unique challenges as a result of their service," said Jeff Hayward,
Senior Vice President of Fannie Mae's National Servicing Organization. "No
family impacted by a death or injury in the line of duty should have to face
the additional burden of foreclosure as a result of the hardship. We want to do
all that we can to provide support to these families at a time of need as we
honor their sacrifices and service to our country."
collaboration on behalf of military members was announced last summer between the
Departments of Veterans Affairs and Housing and Urban Development which will be
coordinating a program using local public housing agencies to channel $58.6
million to rental assistance specifically targeted to homeless veterans.