Tropical Storm Barry is now moving into the nation’s Gulf Coast, threatening the state of Louisiana with as much as 20 inches of rain.
As Barry continues to slowly move along the coast, recent reports now say that the storm has the potential to land a Category 1 hurricane designation.
In response to this threat, Fannie Mae and Freddie Mac are reminding servicers of mortgage assistance options available for victims of this destructive storm.
Fannie Mae’s Senior Vice President and Single-Family Chief Credit Officer Malloy Evans said the company is committed to the well-being and recovery of those in the path of Tropical Storm Barry.
Fannie Mae borrowers who have been impacted by the storm are eligible to stop making mortgage payments for up to 12 months, during this time they will not incur late fees or have delinquencies reported to credit bureaus.
“Along with our partners, we are focused on ensuring assistance is offered to homeowners and renters in need. We urge everyone in the area to be safe, and we encourage residents whose homes, employment, or income are affected by the storm to seek available assistance as soon as possible,” Evans said.
Freddie Mac borrowers who live or work in areas that have been presidentially declared Major Disaster Areas and have access to federal individual assistance programs are eligible for Freddie’s disaster relief options.
Freddie Mac’s Vice President of Single-Family Servicer Performance Management Yvette Gilmore said safety is the company’s top priority for those living in Louisiana and nearby states.
“Once safe from this dangerous storm, we strongly encourage homeowners whose homes or places of employment have been impacted by the storm to call their mortgage servicer—the company to which borrowers send their monthly mortgage payments—to learn about available relief options,” Gilmore said. “We stand ready to ensure that mortgage relief is made available.”
Fannie Mae and Freddie Mac relief options eligible for single-family mortgages include:
- Servicers are authorized to suspend or reduce a homeowner’s mortgage payments immediately for up to 90 days without any contact with the homeowner if the servicer believes the homeowner has been affected by a disaster.
- Servicers must suspend foreclosure and other legal proceedings if the servicer believes the homeowner has been impacted by a disaster.
- Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and
- Not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus.