Fannie Mae Announces Mortgage Relief for Storms Victims Throughout the State of Minnesota
June 27, 2001
ST. PAUL, MN ? Fannie Mae (FNM/NYSE), the nation?s largest source of financing for home mortgages, has mortgage relief provisions in place for disaster areas throughout Minnesota, including Aiken, Lac Qui Parle, Morrison, Otter Tail, Stearns, and Swift counties, and other affected areas, due to borrowers facing hardships as a result of widespread damage caused by recent storms, tornadoes, and flooding.
Fannie Mae?s disaster relief provisions give lenders the discretion to help borrowers in several ways, including suspending mortgage payments for up to three months, reducing the payments for up to 18 months, or in more special cases, creating longer loan payback plans. All changes to mortgage terms will be made on a case-by-case basis.
As residents of our affected communities struggle to recover from the impact of these devastating storms, it?s important that we help them in any way we can," said Senator Mark Dayton (D-MN). "This action will assure that homeowners in the disaster areas will not have the additional burden of making payments on homes that were destroyed."
Fannie Mae?s business guidelines also advise lenders to counsel borrowers on all possible mortgage payment workout options, and to inform homeowners of disaster relief available from federal agencies. Payment relief is available for single-family mortgages including condos serviced by Fannie Mae lenders in areas affected by the storms.
Mortgage lenders doing business with Fannie Mae will, according to Fannie Mae?s guidelines, determine appropriate relief steps by considering:
- any uninsured losses;
- extended unemployment; and
- extraordinary expenses related to the storms that affect mortgage payments.
For information available on mortgage relief, homeowners who have experienced hardships should contact the lender to whom they send their monthly mortgage payment.
Source: Fannie Mae