United Guaranty Provides Forbearance Measures to Flood-Stricken Louisiana

With tens of thousands of homes sustaining damage from flooding in Louisiana, mortgage insurer United Guaranty has initiated a disaster policy and will work with mortgage lenders and servicers to provide flexibility for borrowers in the declared disaster area who are experiencing severe property damage and interrupted employment.

Forbearance measures to prevent foreclosure actions on those coping with storm damage should follow the procedures on dealing with homeowners affected by disasters, natural or otherwise, found in the guidelines established by Freddie Mac and Fannie Mae.

"As homeowners in the declared disaster area begin to recover from the damage caused by this historic flooding, this forbearance measure provides flexibility in serving those families,” said Brian Gould, chief operating officer for United Guaranty. “Servicers will not need prior approval from United Guaranty for workout terms on individual cases under these guidelines. We hope this action provides some support and relief to the many families who are dealing with this severe flood.”