Fannie Mae Reminds Homeowners, Renters, and Mortgage Servicers of Disaster Relief Options for Those Affected by the Southern California Wildfires

Rhea-AI Summary

Fannie Mae (FNMA) has announced disaster relief options for those affected by Southern California wildfires. The company offers mortgage assistance and disaster recovery support for impacted homeowners and renters. Key provisions include:

- Ability to reduce or suspend mortgage payments for up to 12 months through forbearance plans, with no late fees and suspended foreclosure proceedings
- Automatic 90-day forbearance authorization for servicers when homeowner contact cannot be established
- Post-forbearance options including Disaster Payment Deferral and Fannie Mae Flex Modification
- Free disaster recovery counseling services through HUD-approved counselors

The company provides support through their disaster recovery hotline (855-437-3243) and website resources. Counseling services include personalized recovery planning, assistance with FEMA claims, and ongoing guidance for up to 18 months.

Positive

• Proactive disaster relief support maintaining borrower relationships
• Flexible payment options reducing default risks
• No-cost counseling services potentially improving loan performance

Negative

• Potential increase in forbearance-related costs
• Possible rise in loan delinquencies due to disaster impact

WASHINGTON, Jan. 13, 2025 /PRNewswire/ -- Fannie Mae (OTCQB: FNMA) is reminding homeowners and renters impacted by natural disasters, including those affected by the ongoing wildfires in Southern California, of available mortgage assistance and disaster relief options. Mortgage servicers also are reminded of options to assist homeowners under Fannie Mae's guidelines during these circumstances.

"We are monitoring the Southern California wildfires, and we urge those in the path of the fires to focus on their safety," said Cyndi Danko, Senior Vice President and Chief Credit Officer, Single-Family, Fannie Mae. "We are committed to supporting homeowners, renters, and communities in need during this challenging time. If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible. Homeowners and renters can learn more about disaster relief resources, including personalized support, by contacting Fannie Mae's free disaster recovery counseling services."

Homeowners and renters should call 855-HERE2HELP (855-437-3243) to access Fannie Mae's disaster recovery counseling* or visit the Fannie Mae website for more information.

Under Fannie Mae's guidelines for single-family mortgages impacted by a disaster:

• Homeowners may request mortgage assistance by contacting their mortgage servicer (the company listed on their mortgage statement) following a disaster.
• 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. During this temporary reduction or pause in payments, homeowners will not incur late fees and foreclosure and other legal proceedings are suspended.
• In instances where contact with the homeowner has not been established, mortgage servicers are authorized to offer a forbearance plan for up to 90 days if the servicer believes the home was affected by a disaster.
• Following a forbearance plan, there are a number of options available to potentially help homeowners resolve the delinquency without paying a lump sum, including Disaster Payment Deferral and Fannie Mae Flex Modification.

Homeowners and renters looking for disaster recovery resources may visit the Fannie Mae website to learn more about addressing immediate needs. Fannie Mae also offers help navigating the broader financial effects of a disaster to homeowners and renters through disaster recovery counseling at 855-HERE2HELP (855-437-3243).* Assistance is provided free of charge by U.S. Department of Housing and Urban Development-approved housing counselors who are trained disaster-recovery experts that provide:

• A needs assessment and personalized recovery plan.
• Help requesting financial relief from the Federal Emergency Management Agency, insurance, and other sources.
• Web resources and ongoing guidance for up to 18 months.
• Services available in multiple languages.

*Operated by Money Management International (MMI)

About Fannie Mae
Fannie Mae advances equitable and sustainable access to homeownership and quality, affordable rental housing for millions of people across America. We enable the 30-year fixed-rate mortgage and drive responsible innovation to make homebuying and renting easier, fairer, and more accessible. To learn more, visit:
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Fannie Mae Newsroom
https://www.fanniemae.com/news

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Fannie Mae Resource Center
1-800-2FANNIE (800-232-6643)

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SOURCE Fannie Mae

FAQ

What disaster relief options is FNMA offering for Southern California wildfire victims?

FNMA is offering mortgage payment suspension for up to 12 months, no late fees, suspended foreclosures, and free disaster recovery counseling services.

How long can FNMA borrowers suspend mortgage payments due to wildfire damage?

Borrowers can reduce or suspend mortgage payments for up to 12 months through a forbearance plan with their mortgage servicer.

What happens after the FNMA disaster forbearance period ends?

After forbearance, homeowners can access options like Disaster Payment Deferral and Fannie Mae Flex Modification to resolve delinquency without a lump sum payment.

How can affected homeowners contact FNMA for wildfire disaster assistance?

Homeowners can call FNMA's disaster recovery hotline at 855-437-3243 or contact their mortgage servicer directly for assistance.

What free counseling services does FNMA provide for wildfire victims?

FNMA provides free HUD-approved counseling including personalized recovery planning, FEMA claim assistance, and 18 months of guidance.