Borrowers Impacted By Oil Spill May See Loan Payments Suspended or Reduced

From the Release: Fannie Mae Announces Relief For Homeowners Affected by Gulf Oil Spill
   
Fannie Mae today announced that servicers may 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, 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 the company's "Special Relief Measures" policy, servicers may suspend or reduce a borrower's payments for up to 90 days while the servicer determines the nature and extent of the impact the disaster is having on the condition of the property or on the borrower's financial condition. At the conclusion of that assessment, servicers have additional flexibilities to evaluate the appropriate loss mitigation alternative based on a case-by-case determination, including an additional three months of forbearance, a loan modification or other customized solution.

Borrowers seeking relief under Fannie Mae's "Special Relief Measures" policy should contact their mortgage servicer.