American Red Cross News

Mortgage Relief Available for Victims of Flooding in the Midwest; Fannie Mae Announces Grant to American Red Cross

WASHINGTON, June 17 PRNewswire-FirstCall — Fannie Mae (NYSE: FNM) has mortgage relief provisions in place for borrowers facing hardships as a result of the floods that began June 6 and have caused widespread destruction and damage throughout several Midwestern states, including Iowa, Indiana and Wisconsin.

Using Fannie Mae's single-family servicing guidelines on disaster relief, lenders are to evaluate each individual case to determine the appropriate relief measures needed if borrowers are unable to make their mortgage payments. These may include suspending or reducing the borrower's mortgage payments for up to six months and/or offering mortgage loan repayment plans that may extend for up to 18 months. Such assistance is designed to meet the individual needs of single-family mortgage borrowers.

Fannie Mae's servicing guidelines also advise lenders to counsel borrowers on the availability of appropriate relief provisions, and to inform borrowers of disaster relief available from federal agencies. Payment relief may be available for single-family mortgages (including condominiums) serviced by Fannie Mae lenders in areas affected by the floods.

In addition, Fannie Mae, through its Office of Community and Charitable Giving, announced a $25,000 grant to the American Red Cross to help them provide emergency shelter, food, and assistance.

Helping borrowers take care of their existing home and mortgage obligation continues to be the most important work for our customers and for Fannie Mae. Homeowners who have experienced disaster hardships should contact the lender to whom they send their monthly mortgage payment. Our Resource Center can answer additional questions: 1-800-7FANNIE.

Fannie Mae is a shareholder-owned company with a public mission. We exist to expand affordable housing and bring global capital to local communities in order to serve the U.S. housing market. Fannie Mae has a federal charter and operates in America's secondary mortgage market to ensure that mortgage bankers and other lenders have enough funds to lend to home buyers at low rates. In 2008, we mark our 70th year of service to America's housing market. Our job is to help those who house America.

SOURCE Fannie Mae

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