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GSEs Update Provisions for Sandy Victims

Fannie Mae and Freddie Mac updated their disaster relief policies for borrowers impacted by Hurricane Sandy.

The policies apply to properties in eligible disaster areas and are specifically for borrowers who have mortgages secured by one of the GSEs.

One of the announced policies allows servicers to grant 90-day foreclosure sale and 90-day eviction suspensions. Services are also authorized to extend forbearance and repayment plans for up to 12 months for certain borrowers.

The GSEs also say they are speeding up the distribution of insurance proceeds so that home repairs can be done more quickly for storm-damaged homes.

In addition, servicers can offer 90-day forbearance, waive late fees, and suspend credit reporting for those who have been offered relief.

In a release, Tracy Mooney, SVP of single-family servicing and REO at Freddie Mac, said ""Given early assessments of Hurricane Sandy's devastating impact, we are preparing steps that will authorize automatic and immediate action by the nation's mortgage servicers to help more borrowers with mortgages owned or guaranteed by Freddie Mac.""

Timothy J. Mayopoulos, president and CEO of Fannie Mae, said, ""We want families to know that we are here to help them.""

Fannie Mae advised borrowers can visit "knowyouroptions.com" to find out if the GSE owns the loan.

Borrowers can confirm if their loans are owned by Freddie Mac by visiting "freddiemac.com/corporate".

About Author: Esther Cho

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