HousingWireHousingWire
Government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac are aiming to remind homeowners and renters impacted by the ongoing wildfires in Los Angeles of various relief options. These include forbearance and other payment deferral plans, as well as disaster recovery counseling programs through the U.S. Department of Housing and Urban Development (HUD).
“The number one priority for those affected by the destruction of these ongoing wildfires is to reach safety,” Mike Reynolds, Freddie Mac’s single-family vice president and head of servicing, said in a statement. “Once out of harm’s way, we encourage homeowners in these affected areas to contact their mortgage servicer to learn about relief options. Freddie Mac and our partners stand ready to provide immediate assistance and aid in the recovery of families and individuals.”
Cyndi Danko, Fannie Mae’s senior vice president and chief credit officer of single-family, added that the company is continuing to monitor developments related to the wildfires and urges impacted homeowners to immediately contact their loan servicer.
“If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible,” she said in a statement. “Homeowners and renters can learn more about disaster relief resources, including personalized support, by contacting Fannie Mae’s free disaster recovery counseling services.”
At Freddie Mac, disaster relief options are available to anyone with a Freddie-backed mortgage that has been impacted by a natural disaster. This includes anytime the relevant property has been hit with “an insurable loss,” and also covers when a home or “place of employment are located in Presidentially-Declared Major Disaster Areas with individual assistance designations,” according to the company.
“Foreclosure and other legal proceedings are also suspended while homeowners are on a forbearance plan,” Freddie Mac explained.
Fannie Mae also offered a reminder that it has a disaster recovery phone number, which is operated by Money Management International, as well as online resources for impacted borrowers. The phone number is 855-HERE2HELP (855-437-3243).
“Homeowners affected by a disaster are often eligible to reduce or suspend their mortgage payments for up to 12 months by entering a forbearance plan with their mortgage servicer,” Fannie said, echoing some of the information shared by Freddie. “During this temporary reduction or pause in payments, homeowners will not incur late fees and foreclosure and other legal proceedings are suspended.”
Once people are back on their feet, Freddie explains that there are multiple options available for the resumption of payments. These include reinstatement; a repayment plan; payment deferral where payment from a forbearance/relief period are added to the end of the mortgage term and a borrower becomes immediately current; or a loan modification for those borrowers with a long-term financial hardship.
HUD counseling through Fannie Mae can offer assistance for homeowners and renters including a needs assessment and recovery plan; assistance with requests from the Federal Emergency Management Agency (FEMA), insurance companies and others; online resources and guidance for 18 months; and support in multiple languages.
