Hurricane Harvey Fannie Mae & Freddie Mac Updates
Today, Freddie Mac and Fannie Mae released additional temporary disaster assistance servicing requirements. Please review the summary below of these new Fannie and Freddie directives which take effect immediately and apply to borrowers with mortgaged properties or places of employment in eligible disaster areas impacted by the hurricane:
Servicers are directed to implement a 90-day foreclosure sale suspension and a 90-day eviction suspension for borrowers with properties located within a FEMA- declared disaster area that are eligible for FEMA Individual Assistance.
- Servicers are required to suspend all foreclosures for a period of 90 days starting from the date that FEMA declared the location to be eligible for disaster assistance.
- Counsel who provide legal services on default matters are required to suspend all eviction activities for 90 days beginning today.
- Servicers are now able to verbally grant a forbearance to the mortgagor.
- Property inspection fees will be reimbursable by Freddie in an effort to ensure that no property inspection fees associated with the assessment of Harvey-related damage are passed on to borrowers. Freddie is developing a plan and will announce how Servicers should seek reimbursement for these fees.
The following are links to Fannie and Freddie’s press releases and Freddie’s Bulletin regarding Hurricane Harvey:
Proctor will continue to monitor federal and state requirements for Hurricane Harvey assistance and will provide updates as they develop.