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Fannie Mae issued a reminder to servicers that there are disaster relief options for borrowers affected by Hurricane Laura and the California wildfires, under its guidelines for single-family mortgages impacted by natural disaster.
Homeowners can contact mortgage servicers to request assistance and servicers are authorized to suspend or reduce a homeowner's mortgage payment for up to 90 days without establishing contact, according to a press release. Fannie is leaving it up to the servicer to decide if they believe the homeowner was indeed affected by the disaster.
Additionally, homeowners are given the option to suspend or reduce mortgage payments for up to 12 months, according to the report. Homeowners will not incur late fees and foreclosures or any legal proceedings are suspended.
"We are monitoring these situations, and we urge those in the path of the storm and fires to focus on their safety first as they prepare for the potential impact of these events," said Malloy Evans, senior vice president and single-family chief credit officer, Fannie Mae. "Along with our lending and servicing partners, Fannie Mae is committed to ensuring assistance is available to homeowners and renters in need. We encourage residents whose homes, employment, or income are impacted by this storm and fires to seek available assistance as soon as possible."
It's also important to note that there are a number of options that allow homeowners to catch up on their missed payments.
Read more about Fannie Mae's assistance options for homeowners affected by Hurricane Laura or the California wildfires.