Fannie Mae, Citi Announce Mortgage Relief Tied To Gulf Oil Spill

Posted by Orb Staff on June 17, 2010 No Comments
Categories : Mortgage Servicing

Mae is permitting servicers to immediately suspend or reduce mortgage payments for borrowers whose properties or income are negatively impacted by the Gulf of Mexico oil spill, the government-sponsored enterprise announced Wednesday. ‘Our policy is in place to support those who are experiencing a disaster-related hardship through no fault of their own and are acting in good faith to meet their mortgage obligation,’ says Michael J. Williams, Fannie Mae president and CEO. Under the company's ‘Special Relief Measures’ policy, servicers may suspend or reduce a borrower's payments for up to 90 days while the servicer determines the nature and extent of the impact the disaster is having on the condition of the property or on the borrower's financial condition. At the conclusion of that assessment, servicers have additional flexibilities to evaluate the appropriate loss mitigation alternative based on a case-by-case determination, including an additional three months of forbearance, a loan modification or another customized solution. Citi CEO Vikram Pandit, meanwhile, has announced a foreclosure suspension program for CitiMortgage-owned mortgages in coastal areas hard-hit by the oil spill. During the three-month suspension, effective June 17 through Sept. 17, borrowers with first-mortgage loans owned by CitiMortgage and who meet certain other criteria will not be subject to foreclosure sales or foreclosure notifications. In addition, evictions on real estate owned properties (REOs) will cease during this time. CitiMortgage borrowers occupying residences in ZIP codes within approximately 25 miles of affected coastal areas will be eligible for the program. While CitiMortgage does not own all of the loans it services, the company says it hopes to help as many borrowers as possible with this initiative. SOURCES: [link=http://www.fanniemae.com/newsreleases/2010/5062.jhtml]Fannie Mae[/link], [link=http://citimortgage.com/]Citi

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