Last week, Fannie Mae informed lenders that it was extending its special relief measures for areas impacted by deadly 2005 hurricanes Katrina and Rita until the end of 2007. The special measures, including a moratorium on foreclosures without Fannie's direct approval, had been set to expire at the end of March.
In a letter addressed to lenders, Fannie said lenders must "obtain written approval from Fannie Mae before beginning or continuing a foreclosure action with respect to a mortgage secured by a property in specific counties or parishes."
Impacted areas include Orleans, St. Bernard, and St. Tammany parishes in New Orleans; and Hancock, Harrison, and Jackson counties in Mississippi.
"In addition, our Special Loss Mitigation team based in the New Orleans area has identified properties within as well as outside of these counties and parishes with unique circumstances that require specialized action," said Marianne Sullivan, senior vice president at Fannie Mae.
"We are continuing to contact servicers that are servicing these mortgages to discuss actions to be taken."
In its letter, Fannie also provided servicers with general guidance on the adminstration of Fannie-approved forbearance plans for borrowers still looking to relocate, find a new job or obtain grant money.
For more information, please visit http://www.efanniemae.com