Fannie and Citi Offer Mortgage Relief to BP Oil Spill Victims

Mortgage companies are beginning to step up and offer some relief to homeowners whose livelihood has been impacted by the BP oil spill off the coast of the Gulf of Mexico.
[IMAGE] On Wednesday, ""Fannie Mae"":http://www.fanniemae.com issued an announcement suggesting its servicers immediately suspend or reduce mortgage payments for borrowers whose properties or income are negatively impacted by the Gulf oil spill.

""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,"" said Michael J. Williams, the GSE's president and CEO. ""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.""

Under Fannie Mae's _""Special Relief Measures""_ policy, servicers may suspend or reduce a borrower's payments for up to 90 days while the servicer determines the extent of the impact the disaster is having on the condition of the property or on the borrower's financial condition.

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At the conclusion of that assessment, servicers have the flexibility to evaluate the appropriate loss mitigation action on a case-by-case basis, including an additional three months of forbearance, a loan modification, or another customized solution.

Also on Wednesday, ""Citigroup"":http://www.citigroup.com announced a foreclosure suspension program for CitiMortgage-owned first mortgages in coastal areas of the Gulf. In addition, the company says evictions on its REO properties will cease during this time.

Citi said in a statement, ""While CitiMortgage does not own all of the loans it services, the company hopes to help as many borrowers as possible with this initiative"" and ""allow distressed homeowners to remain in their homes during these uncertain times as the Gulf communities respond to the oil spill and its economic repercussions.""

The company's foreclosure moratorium for oil spill victims takes effect June 17 and goes through September 17. CitiMortgage borrowers occupying residences in ZIP codes within approximately 25 miles of affected coastal areas will be eligible for the program.

The company has a dedicated team of representatives assisting with the Gulf foreclosure suspension program, as well as an on-the-ground presence throughout the coastal region, with staff available to work with customers individually.

Vikram Pandit, CEO of Citi said, ""By putting CitiMortgage foreclosures on hold, we aim to ease the burden on residents of the Gulf states so they can concentrate on the most urgent matters facing them. In the midst of this crisis, we will continue to explore ways to help people avoid foreclosure so they and their families can remain in their homes and have one less thing to worry about.""