(The following press release from Fannie Mae was received by e-mail. The sender
verified the statement.)
November 9, 2012
Fannie Mae Delivers Help to Homeowners Affected by Hurricane Sandy
WASHINGTON, DC - Fannie Mae (FNMA/OTC) is acting to ease the burden facing
homeowners in the path of Hurricane Sandy through an expanded package of
options for new and existing mortgages.
"Since 2009, Fannie Mae has responded to the credit crisis by providing
approximately $3 trillion in liquidity to the mortgage market so that millions
of Americans can buy homes, refinance their loans or rent affordable housing.
In that time, we've helped approximately 1.3 million struggling borrowers avoid
foreclosure," said Timothy J. Mayopoulos, president and CEO of Fannie Mae.
"Now, we're responding to another crisis by making sure that homeowners have
options to manage their housing challenges in the aftermath of Hurricane Sandy.
We want families to know that we are here to help them."
Servicers may immediately grant a borrower who has been affected by Sandy
relief for 90 days in order to determine the facts of their situation. Early
next week, Fannie Mae will issue guidance to servicers to expand the options
they can offer to homeowners. For any homeowner who has suffered damage to
their home or experienced a disruption in income as a result of Hurricane
Sandy, servicers are authorized to take the following measures:
* Extend forbearance for up to 12 months, where appropriate;
* Provide loan modifications, once the homeowner is able to resume
monthly mortgage payments;
* Waive any late payment charges;
* Suspend credit reporting for any homeowner for whom relief is
* Delay the initiation of any foreclosure action to determine the
condition of the property and the borrower's employment and income
Fannie Mae is implementing a 90-day foreclosure sale suspension and a 90-day
eviction suspension for properties located within FEMA designated disaster
areas eligible for individual assistance (those areas can be found at
Additionally, Fannie Mae is adjusting its guidelines for disbursements of
insurance proceeds to ensure that homes damaged by Sandy can be repaired more
Furthermore, Fannie Mae is taking steps to facilitate completion of mortgage
loans that were in process when Sandy hit by accepting documents and
maintaining pricing that were in place at the time of the storm. Underwriting
and property valuation documents will now be valid for 180 days in areas
affected by the storm. Underwriting documents, such as credit reports and
income verification, are typically valid for 90 days. Property valuation
documents, such as appraisals or DU Refi Plus(tm) field work waivers for HARP
refinances, are typically valid for 120 days. Property valuations for short
sales delayed due to Hurricane Sandy will be valid for 180 days instead of the
usual 90 days.
Homeowners with Fannie Mae loans are eligible for free information and
assistance at a Fannie Mae Mortgage Help Center or by telephone. Contact
information can be found at
www.knowyouroptions.com<http://www.knowyouroptions.com/> or by calling
1-800-7FANNIE (1-800-732-6643). KnowYourOptions is a resource for borrowers in
distress and provides the information they need to take action early. To find
out if Fannie Mae owns their loan, borrowers can visit
Consumers can also go to
www.knowyouroptions.com<http://www.knowyouroptions.com/> for information on how
to protect themselves from scams and navigate other challenges caused by the
Fannie Mae will be coordinating local outreach events in the hardest hit
communities with key federal, state and local housing industry participants.
Finally, the company is matching donations made by Fannie Mae employees to
American Red Cross relief efforts.
Director, Media and External Relations
Office - 202.752.5168
Cell - 202.200.6351
Press spacebar to pause and continue. Press esc to stop.