Fannie Mae (FNM/NYSE), the nation’s largest source of financing for home mortgages, has mortgage relief provisions in place for Ft. Worth, Arlington and other area borrowers facing hardships as a result of widespread damage caused by the recent tornado.

Fannie Mae’s disaster relief provisions give lenders the discretion to help borrowers in several ways, including suspending mortgage payments for up to three months, reducing the payments for up to 18 months, or in more special cases, creating longer loan payback plans. All changes will be made on a case-by-case basis.

"Residents of our impacted areas will have a tough struggle to recover from the effects of this devastating tornado," said U.S. Representative Kay Granger (R-TX). "And, we are doing all that we can to assure that homeowners in the disaster areas will not have the additional burden of making payments on homes that were destroyed. We commend Fannie Mae for offering this relief."

Fannie Mae’s business guidelines also advise lenders to counsel borrowers on all possible mortgage payment work-out options, and to inform homeowners of disaster relief available from federal agencies. Payment relief is available for single-family mortgages (including condos) serviced by Fannie Mae lenders in areas affected by the storms.

Mortgage lenders doing business with Fannie Mae will, according to Fannie Mae’s guidelines, determine appropriate relief steps by considering:

• any uninsured losses;


• extended unemployment; and


• extraordinary expenses related to the tornadoes that affect mortgage payments.

For information available on mortgage relief, homeowners who have experienced hardships should contact the lender to whom they send their monthly mortgage payment.

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Fannie Mae is a New York Stock Exchange company and the largest non-bank financial services company in the world. It operates pursuant to a federal charter and is the nation’s largest source of financing for home mortgages. Over the past 31 years, Fannie Mae has provided nearly $2.8 trillion of mortgage financing for over 34 million families. More information about Fannie Mae can be found on the Internet at http://www.fanniemae.com.

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