Homeowners impacted by Hurricane Isaac may qualify for loan forbearances if they have loans insured by United Guaranty.
The mortgage insurer is following in the footsteps of Freddie Mac by approving forebearances on monthly payments for borrowers with Hurricane-ravished properties.
As a mortgage insurer, United Guaranty is generally on the hook when homeowners fail to make monthly mortgage payments. But with Hurricane Isaac leaving distressed homeowners across the Gulf Coast, United Guaranty is using GSE guidelines to give struggling borrowers with damaged properties time to recover financially.
As long as lenders and servicers follow the established GSE forbearance guidelines, they can assist troubled borrowers without seeking initial approval from United Guaranty.
"This action gives our customers a great deal of latitude in serving borrowers in affected areas," said Brian Gould, senior vice president of loss management, underwriting, and servicing.
"With widespread property damage, people in these areas have a lot to cope with in terms of repairs and work interruptions. In working with lenders whose customers have been affected, we are prepared to accept a range of reasonable solutions where mortgage payment is concerned."