| Fannie Mae Lender Letter 01-07 Hurricane-Related Special Relief Measures |
| Friday, 13 April 2007 | |
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Fannie Mae has released Lender Letter 01-07 titled, " Hurricane-Related Special Relief Measures", extending the requirement for servicers to obtain written approval from Fannie Mae before beginning or continuing a foreclosure action with respect to a mortgage secured by a property in certain areas. In addition, it reminds servicers of when it is appropriate to continue forbearance.
Extension of Requirement to Obtain Fannie Mae Approval Prior to Foreclosure in Certain Areas Affected by Hurricanes Katrina and Rita In Lender Letter 06-06 Fannie Mae extended through March 31, 2007, the requirement to obtain written approval from Fannie Mae before beginning or continuing a foreclosure action with respect to a mortgage secured by a property in specific counties or parishes. This Lender Letter further extends this requirement through December 31, 2007, in the following counties or parishes: Louisiana - Orleans, St. Bernard, and St. Tammany; and Mississippi - Hancock, Harrison, and Jackson. A servicer must ensure that it has exhausted all of Fannie Mae's foreclosure prevention alternatives before concluding that foreclosure is the appropriate course of action. When this extension expires on December 31, 2007, servicers should follow the foreclosure policy guidance contained in Part VIII of the Servicing Guide. In addition, Special Loss Mitigation team members based in the New Orleans area are identifying properties within as well as outside of these counties and parishes with unique circumstances that require specialized action. Fannie Mae will continue to contact servicers that are servicing these mortgages to discuss actions to be taken.Continuing Forbearance Servicers are reminded that the continuation of a forbearance plan may be appropriate when the borrower has expressed a desire to retain the property but is not yet able to resume making mortgage payments. A forbearance plan may be appropriate under any of the following circumstances, such as:
Servicers should continue working with these borrowers to provide assistance, including continued suspension or reduction of mortgage payments, to address the particular circumstances faced by each borrower. Servicers should reference the Servicing Guide for guidance related to forbearance terms in natural disaster situations. Any questions regarding this Lender Letter should be directed to Servicers with any questions about this Lender Letter the respective Servicing Consultant, Customer Account Manager, or to the National Servicing Organization’s Customer Care Center at 1-888-326-6438 (enter special code 7222 for Hurricane-related questions). To view the Lender Letter in its entirety, please click here. |
