Please see the following responses to the tragic events of September 11th by HUD, FNMA, and FHLMC.

From: Jerry Mayer <Jerrold_H._Mayer@HUD.GOV>
Subject: new hud mortgagee letter 2001-21
To: HOMEOWNERSHIP-L@hudlist.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 01-21 at:
http://www.hud.gov/news/mbamortletter.pdf

Letter to Housing Counseling Agencies at:
http://www.hud.gov/news/houscounsel.pdf

WASHINGTON - Housing and Urban Development

Secretary Mel Martinez today announced that he will direct all FHA-approved lenders to provide relief to families with FHA insured mortgages affected by the recent terrorist attacks. Martinez is also taking the unusual step of asking all major mortgage lenders, including those that are not insured by FHA, to consider providing relief to the families as well.

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
potential loss of a home, the foundation of many American families, to that stress can be averted with the help of lenders. That is the goal of this letter."HUD's Government National Mortgage Association, Ginnie Mae, will also encourage lenders to follow HUD's homeowner relief guidance by advancing payments to Ginnie Mae securities investors that a lender otherwise makes from homeowner mortgage payments. Ginnie Mae will soon be issuing this guidance to affected lenders.

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 go to:
http://www.hud.gov/fha/mletters/mltrmenu.html
select 2001 letters and read the letter of your choice. (pls note you may need to wait a day or so for the new ML to be posted to the menu, use the link at the top of this email to view the mortgagee letter and MBA letter right now.)

GSEs Call for Disaster-Related Forbearances

Fannie Mae and Freddie Mac have implemented their disaster relief programs and are calling on servicers to provide forbearances to the families of mortgage borrowers who have been affected by the tragedies in New York, Washington, and Pennsylvania. Fannie Mae said in a statement that its servicers should apply the natural disaster relief provisions outlined in its servicing guide. The statement noted that "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." Douglas Robinson, a Freddie Mac spokesman, said the agency is working with its servicers "in the same way we would handle natural disasters." Servicers are to "give borrowers the benefit of the
doubt with respect to delinquencies related to this tragedy," Mr. Robinson emphasized. The government-sponsored enterprises' website addresses are http://www.fanniemae.com and http://www.freddiemac.com.