Fannie Mae Mortgage Relief for Tennessee Tornado Victims

Fannie Mae Announces Mortgage Relief for Tornado Victims in Middle Tennessee
WASHINGTON, DC --

Fannie Mae (FNM/NYSE) has mortgage relief provisions in place for Middle Tennessee borrowers facing hardships as a result of the tornados that caused widespread damage in the area on April 7. Using Fannie Mae's servicing guidelines, which outline disaster relief provisions, lenders make individual case-by-case evaluations as to the appropriate relief measures needed and can help borrowers in several ways, including suspending mortgage payments for up to three months, reducing the payments for up to 18 months, or in more severe cases, creating longer loan payback plans.

Such assistance is designed to meet the individual needs of borrowers. Fannie Mae's servicing guidelines also advise lenders to counsel borrowers on all possible mortgage payment work-out options, and to inform homeowners of disaster relief available from federal agencies. Payment relief is available for single-family mortgages (including condos) serviced by Fannie Mae lenders in areas affected by the tornadoes.

Holders of Fannie Mae mortgage securities will be paid as usual during the relief period.
Mortgage lenders doing business with Fannie Mae will, according to Fannie Mae's servicing guidelines, determine appropriate relief steps by considering: any uninsured losses; extended unemployment; and extraordinary expenses related to the storms that affect mortgage payments. For information on mortgage relief, homeowners who have experienced disaster hardships should contact the lender to whom they send their monthly mortgage payment.