Mortgage Relief

Important Articles and Information

  • “Some Insurers Suspend Billings, Offer Grace Periods” (article download)
  • “Fannie Mae Announces Mortgage Relief for Hurricane Katrina Victims in Mississippi, Louisiana, Alabama and Florida; Lenders Now Have More Flexibility to Handle Insurance Disbursements in Wake of Disasters,” (article download)
  • “Inside Real Estate Katrina-Hit Homeowners Get Some Mortgage Relief” (article download)

  • Freddie Mac (Freddie Mac News Release, 9/8/05)

    • Help cash-strapped victims of Katrina by returning September mortgage payments that were already made by borrowers but not yet reported to Freddie. Alternatively, borrowers may contact their servicers to request the return of their September payments. Borrowers will be required to make all mortgage payments once the temporary suspension period ends.
     
    • Suspend for three months mortgage collections (September, October, and November) in the disaster areas designated by FEMA. Following that three-month suspension, servicers may decide whether to continue allowing postponement of payments or to allow reduced payments on Freddie Mac-owned mortgages for an additional 9 months on a case-by-case basis. Servicers must make their determinations before the mortgage’s December payment due date
     
    • Not report to credit bureaus reversed or suspended payments that resulted from Katrina and to suspend all late fees, collections and foreclosure activities in the storm-affected areas during the 3-month suspension period.
     
    • May reverse September payments, at their discretion, already made via ACH and credit the payment back to the borrower’s draft account. Servicers must return payments to borrowers when contacted by the borrower and specifically requested to return the payment. In addition, unless the borrower contacts the Servicer to make other arrangements, the Servicer must consider the borrower to have accepted a forbearance of the September payment.
     
    • Not to advance interest on any Freddie Mac mortgage granted forbearance under the company’s special Hurricane Katrina policies.

    Fannie Mae (8/31/05 Fannie Mae News Release)

     

    For information on mortgage relief, homeowners that experience a hardship should contact the lender to whom they send their monthly mortgage payment.

    Consumer Resource Center – 1-800-732-6643

    • Through Fannie Mae’s disaster relief provisions, lenders help borrowers in several ways, including suspending mortgage payments for up to 3 months, reducing the payments for up to 18 months, or in more severe cases, creating longer payback plans. Such assistance is provided on a case-by-case basis, and is designed to meet the individual needs of the borrowers.
     
    • Fannie Mae recently announced that it has streamlined its procedures for handling insurance proceeds to provide lenders with more discretion in disbursing insurance proceeds. These improved procedures are based primarily upon the status of the mortgage at the time of the disaster and the extent of the damage. The new procedures are applicable for any federal or state declared natural disaster and will enable lenders top work more efficiently to address the needs of those borrowers who may require assistance.
     
    • Lenders are now required to temporarily discontinue reporting delinquencies to credit bureaus if they are aware that the borrower’s delinquency is attributed to hardships as a result of natural disaster

     

    CUNA Mutual Group (9/9/05 CUNA News Now)

     

    • CMG 24-hour Disaster Response Hotline: 1-800-637-2676

     

    In areas declared disasters by the FEMA, the following measures were implemented:

     

    • Premium grace period extension –extended by 60 days. Additional extensions will be considered as the recovery situation develops.
     
    • Claim payments – CUNA Mutual will continue to make claim payments as follows: Previously scheduled electronic payments will be made to credit unions, until or unless the credit union requests another arrangement. The U.S. Postal Service will hold mailings that contain paper checks until they are deliverable.
     
    • Claims processing – All claims originating from Katrina will be handled as quickly and efficiently as possible, and will be evaluated according to provisions of the insurance contract. On an individual claim basis, every effort will be made to limit requirements to expedite the distribution of funds.
     
    • Policy renewals – If CUNA Mutual cannot contact a credit union or individual policyowner to renew an insurance contract, an automatic renewal will occur for that product. Any necessary changes to coverage limits or deductibles, etc., will be made once contact is restored with the insured.
     
    • Standard billings and mailings, scheduled promotions in affected areas – Many residents in the affected areas are either engaged in securing basic needs or have vacated the area. CUNA Mutual is reviewing all scheduled billings and mailings intended for distribution in affected areas. The company is temporarily suspending mailings to these areas to ease the burden for credit unions and members.
     
    • CUNA Mutual Mortgage Corp. – A hold has been placed on assessing late charges and credit bureau reporting for credit union members who have mortgages serviced by CUNA Mutual Mortgage, and who reside in the hurricane- affected counties. CUNA Mutual will also work with members on repayment plans and loss mitigation options.

     

    Federal Employee Education and Assistance Fund (FEEA) (8/31/05 Release)

    Federal employees affected by this disaster may download an Emergency Assistance application from FEEA’s web site http://www.feea.org to apply for grants and no-interest loans to help with temporary shelter, clean-up, rebuilding and other expenses. Those in need may also contact FEEA at 1-800-323-4140 or 303-933-7580.

 

Property Insurance Information

For property damage, click on the major insurance claims hotlines, which will provide a fairly comprehensive list of insurance company telephone numbers. To find make a flood insurance claim, or if you have questions about flood insurance, contact the National Flood Insurance Program. For other property insurance information, contact the appropriate state insurance department.