|September 13, 2001
Fannie Mae Offers Mortgage Relief to Families Affected by Tuesday's Terrorist Attacks
WASHINGTON, DC -- Fannie Mae (NYSE: FNM), the nation's largest source of financing for home mortgages, today announced that its lenders should apply the disaster relief provisions outlined in its Servicing Guide to borrowers affected by Tuesday's terrorist attacks on various sites within the United States.
These disaster relief provisions normally are available for use by mortgage servicers in cases of natural disasters. But due to the extraordinary nature of this week's terrorist attacks, and the ensuing disruption to families and normal business activities, Fannie Mae is extending the relief provisions to this instance as well.
Fannie Mae's disaster relief provisions give mortgage servicers the discretion to help borrowers in several ways, including suspending or reducing mortgage payments for a time, or, in some circumstances, creating longer loan payback plans, resulting in a lower monthly payment. All changes will be made on a case-by-case basis.
"While we have yet to fully comprehend the enormity of this tragedy, we understand that borrowers who have lost family members or otherwise been affected by this attack may find it difficult to resume the normal pattern of their lives for some time," said Franklin D. Raines, Fannie Mae's Chairman and Chief Executive Officer. "Our lenders will work with borrowers facing hardships as a result of these unprecedented terrorist attacks. Fannie Mae extends its condolences to all those affected by Tuesday's horrific events."
Mortgage servicers should counsel borrowers on other possible mortgage payment workout options, or inform homeowners of other relief options available from federal agencies. Payment relief is available for borrowers with single-family mortgages -- including condos and co-ops -- whose ability to pay was affected by this week's terrorist attacks. The relief provisions mentioned above apply to mortgages that are serviced by Fannie Mae lenders. The guidelines state that servicers should not start foreclosure proceedings on any homeowner within the first 90 days after a disaster.
Holders of Fannie Mae mortgage securities will be paid as usual during the relief period.
Mortgage lenders doing business with Fannie Mae will determine appropriate relief steps in accordance with Fannie Mae guidelines and by considering the unique circumstances of each borrower.
For information on available mortgage relief, homeowners who are experiencing hardships should contact the lender to whom they send their monthly mortgage payments. Borrowers also may contact Fannie Mae's Consumer Resource Center at 1-800-7FANNIE (1-800-732-6643), Monday through Friday, 9:00 a.m. to 5:00 p.m. EDT.