Hurricane Katrina Victims Get Relief From Fannie and Freddie

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Hurricane Katrina

Freddie Mac Chairman and CEO Richard Syron stated on Tuesday "Our goal is to help families affected by Hurricane Katrina to keep their homes."

Freddie and Fannie's programs are multi-faceted and similar if not identical. First, they have instructed their lenders and companies servicing their loans to counsel borrowers on payment options that may be available to them during the crisis. These include suspending mortgage payments for a short period of time (three months in the case of Fannie Mae) or reducing payments for a longer period of time (up to 18 months for Fannie Mae). In more severe cases the servicers can create longer payback plans. Lenders are also encouraged to waive late fees and penalties against borrowers with disaster damage.

Lenders and servicers are required to temporarily discontinue reporting delinquencies to credit bureaus if they are aware that the borrower's delinquency is attributed to hardships as a result of a natural disaster.

Perhaps even more important, both corporations have instructed their lenders to expedite the release of insurance proceeds to help borrowers secure materials and hire contractors. The availability of these improved procedures, however, is based primarily on the status of the mortgage at the time of the disaster and the extent of the damage but they "will enable lenders to work more effectively and efficiently to address the needs of those borrowers who may require assistance."

Pam Johnson, senior vice president and single family credit officer at Fannie Mae stated "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. Fannie Mae has made changes to its insurance requirements that will ease the process for lenders and, more importantly, provide homeowners with much-needed relief."

It is unthinkable that the hundreds of thousands of people who are suffering so horribly along the Gulf Coast are reading this. They are concerned with sheer survival at this point. But when the immediate crisis is over please tell anyone you know who has been affected by Katrina to contact the company that services their mortgage to work out some contingencies to get their homes repaired or replaced.

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Regardless of the above instructions to mortgage companies I have been having a time getting my business handled in a timely manner by Washiington Mutual. I paid of my mortgage in November and have been requesting information from them since January. It is now May and I still haven't received the requested documents. Our experience has been that they say they are going to do something, then don't follow through. We'll be so happy when we no longer have to deal with them at all.

Above Posted By: Robert | Mon, 1 May 2006 22:40:47 EST

I live in an affected area outside of N.O. I want to know where is relief for the river parishes? I recieved no FEMA and my insurance company has not come through.

Above Posted By: Piper | Wed, 1 Feb 2006 10:18:46 EST

Thank God for "Freddie and Fannie." You are truly a blessing to your mortgagees. Thomas Paine was correct when he said "These are the times that try men's souls." Again, thanks for your understanding during these difficult and trying times.

Above Posted By: Roosevelt | Thu, 10 Nov 2005 13:21:28 EST

I always believe that disasters or any kind of tragedy brings out the good in people and so for Fannie and Freddie we salute you for your generosity and kindness.

Above Posted By: Social Security Attorney | Thu, 20 Oct 2005 21:11:54 EST

I received the same explanation from trustmark. The individual I spoke to on the phone said it would actually be illegal for them to do so, but could not explain why.

Above Posted By: allan | Fri, 14 Oct 2005 17:58:43 EST

My house in Biloxi Ms is 90% destroyed. I contacted Trustmark National Bank about suspension of laon payments for 3 months. They told me there is no program to suspend payments. They told me they do not own the loan, Fannie Mae does and there was nothing they can do to help me. They seem to be ignorant of any mortage relief policies you may have.

Above Posted By: Kirk Ferguson | Wed, 14 Sep 2005 09:23:04 EST

question: I bought a property in the hurricane area that has 3 units. I live in one and rent the other 2, which is how I make my payments. My lender told me to make my payment on time and gave me no extention or any kind of relief. I have not seen the property yet, but it in a dry area & get no flooding, but will be vacated until people are allowed to go back there. Do I qualify for some kind of relief until my rents are back to normal? Would appreciate any advice.

Above Posted By: Marge | Sun, 11 Sep 2005 00:15:43 EST

For the people who chose to stay here in Houston and have a mortgage to be paid off and want buy. I am both Realtor and Mortgage Broker. I am willing to help them find a home here in Houston and assit with financing. I allso have exprence in short sales to help with the pay off of thier present mortgage. In addition I am working with Red Cross to place families in rental propertes with property owner that have aggreed to short term leasing.

Above Posted By: Dwight Bailey | Fri, 9 Sep 2005 11:09:23 EST

I have 40 hp pumps available to pump basements in new orleans. please forwrd this to the individuals that may require this service...pb

Above Posted By: pat byrne | Tue, 6 Sep 2005 18:40:24 EST

Hurricane Katrina Victims Get Relief From Fannie and Freddie

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