| 911- Foreclosure Suspension Information |
| Thursday, 20 September 2001 | |
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Please see the following information regarding the Investor/Insurer suspensions of foreclosures in certain areas due to the events of September 11th.
Date: Mon, 17 Sep 2001 06:40:48 -0500 Please ensure that this goes out to your distribution. An industry letter is coming out today to explain this. Freddie is suspending foreclosure sales across the country in all states until September 25th. In the states of CT, NY, NJ, PA, MD, DC, VA, WV and CA we are suspending foreclosure sales until October 1st. In addition, in those states (CT, NY, NJ, PA, MD, DC, VA, WV and CA) we are asking Servicers to not refer any new loans to foreclosure until 11/1/01. This will allow time to ascertain people impacted by the disaster and allow time to pursue loss mitigation prior to referring loans to foreclosures.
In all other states, the foreclosure process should not be stopped. Again, we are only asking that a Servicers postpone a foreclosure sale that is scheduled on or before September 25th. For example, if a loan in OR is scheduled for foreclosure sale on 10/5/01, the Servicer should continue as normal, working to publish and be ready to go to foreclosure sale on that date. If anyone has questions, please have them contact
From: Jerry Mayer <Jerrold_H._Mayer@HUD.GOV> HUD 01-082 For Release Thursday September 13, 2001. MARTINEZ ENCOURAGES LENDERS TO GIVE RELIEF TO FAMILIES AFFECTED BY TERRORIST ATTACKS
MBA Letter - Mortgagee Letter 01-21at:
Letter to Housing Counseling Agencies at:
WASHINGTON - Housing and Urban Development
In the past during national disasters, the nation's housing agency issued letters directing lenders to work with affected families who have FHA-insured mortgages, to provide additional mortgage flexibility. The letters specifically ask lenders not to start or threaten foreclosure for at least 90 days, while the families are recovering from the financial problems caused by the loss of a family member. "This extraordinary period requires all of us to go the extra mile and a little beyond," said HUD Secretary Mel Martinez. "It is apparent that these families are going through an overwhelming experience. Adding the HUD's assistance to the victims of the terrorism will also include:A hotline number for HUD's Housing Counseling Clearinghouse (1-800-217-6970), a nationwide referral center for families and individuals to obtain information on housing counseling services available in their area; Providing Temporary Housing and Shelter for Disaster Victims - HUD will work with FEMA to identify vacant HUD-owned homes and multi-family units that can be used as temporary housing for those forced from their homes; Requesting that all HUD-approved agencies reach out to affected families and provide comprehensive housing counseling services to all those in need of shelter and/or financial assistance; and, Providing counseling grants, should counseling agencies need additional resources to provide services. HUD is also providing its nearly 9,000 employees with an array of counseling services provided by its Employee Assistance Program. Group, individual and family counseling sessions are also available to any office on an as-needed basis during the days and weeks ahead by calling 1-800-222-0364 at any time.
to view this mortgagee letter(s) in its entirety goto:
This just in from VA. VA's Release on Relief 2. DIRECT AND INDIRECT IMPACT ON BORROWERS: Some borrowers were directly affected by the attacks, and include the families of those killed on the hijacked airplanes and their targets on the ground, as well as those who have died in the rescue efforts. Also directly affected were those whose work environments were destroyed or severely damaged as a result of the attacks. To a certain extent, many others have been less directly affected, including business partners of those in the vicinity of the attacks. And our understanding is that the impact continues to ripple throughout the country, as security concerns have lead to limiting air service, including air transport of mail, while electronic communications have also been affected. 3. FORBEARANCE REQUEST: VA encourages holders of guaranteed loans to extend every possible forbearance to borrowers in distress as a result of the attacks of September 11, 2001. Careful counseling with borrowers should help determine whether their difficulties are directly related to the attacks, or whether they stem from other sources which must be addressed. VA Regulations (located in title 38, Code of Federal Regulations, or CFR) regarding "Reapplication of Prepayments (38 CFR 36.4310), "Advances" (38 CFR 36.4313), "Extensions and Reamortizations" (38 CFR 36.4314), and "Supplemental Loans" (38 CFR 36.4355) may be of assistance in appropriate cases. 4. MORATORIUM ON FORECLOSURES: Although the loan holder is ultimately responsible for determining when to initiate foreclosure and for completing termination action, we are requesting that holders establish a 90 day moratorium from September 11, 2001, on initiating new foreclosures on loans affected by the attacks. Since VA is requesting this, the provisions of 38 CFR 36.4319(f) will not be applied by VA during the moratorium to loans where VA is notified that the moratorium is appropriate. Also, the period of the moratorium will be considered "VA-requested forbearance" for purposes of the no-bid avoidance provisions of 38 CFR 36.4321. Because of the national impact of the attacks, holders should ensure that all foreclosures scheduled nationwide during the moratorium are reviewed prior to sale, to ensure that borrowers have not been affected significantly enough to justify postponement or cancellation. Any questions about impact should be discussed with the appropriate VA Regional Loan Center (RLC). 5. LATE CHARGE WAIVERS: VA has already heard from several servicers about their plans to waive late charges due to the ripple impact of the attacks. VA regulations (38 CFR 36.4311(c)) allow a late charge not in excess of 4% on any installment paid more than 15 days after the due date. Based on reports of mail delays, as well as difficulties with electronic communications and transfer of funds, we support those servicers who are automatically extending dates for imposition of late charges, and encourage similar consideration by all VA loan holders. 6. REPORTING TO VA: VA has also heard from at least one servicer about difficulties with its computer access due to the attacks, which will delay reporting of defaults to VA. This servicer will focus its limited access on processing payments and servicing accounts. VA supports those efforts and will not penalize the servicer for any late reporting caused by the attacks. Contact the appropriate RLC with any questions. 7. ACTIVATION OF RESERVISTS/GUARD: The President has authorized the call to active military duty of as many as 50,000 National Guard and Reservists. Those individuals may be entitled to relief provisions under the Soldiers' and Sailors' Civil Relief Act of 1940, as amended (50 USC App. Sections 501-590). VA is not charged with enforcement of the Act, but in order to protect veterans we will attempt to inform loan holders about certain provisions of the Act in the near future. 8. OTHER VETERANS' BENEFITS: During the course of servicing VA-guaranteed loans, counselors may contact veterans who appear to be in need of additional benefits. In order to help those veterans, mortgagees may want to ensure that their staffs are aware of, and prepared to pass on a national toll-free number for obtaining information on veterans' benefits. The number is 1-800-827-1000. Other benefits which may be available to eligible veterans include compensation for service-connected disabilities, pension payments for needy veterans, vocational counseling and employment assistance, education assistance, and life insurance programs. Medical benefits may also be available for many conditions, including post traumatic stress disorder. 9. STATION RELEASES: Field stations with Loan Guaranty servicing activities (Regional Loan Centers, Honolulu, and San Juan) will reproduce paragraphs 1 through 8 of this circular for immediate release to program participants in their jurisdiction. Copies of these releases need not be submitted to Central Office. Questions may be directed to Carl Wasson at 202-273-7345.
10. RESCISSION: This circular is rescinded April 1, 2003.
Distribution: CO: RPC 2024 |
