Fannie Mae (FNM/NYSE), the nation's largest source of financing for home mortgages, has mortgage relief provisions in place for counties across West Virginia where borrowers are facing hardships as a result of widespread damage caused by the recent floods.

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 to mortgage terms will be made on a case-by-case basis.

"This will be welcome assistance to residents whose homes have been affected," said U.S. Representative Shelley Moore Capito (R-WV). Fannie Mae's business guidelines also advise lenders to counsel borrowers on all possible mortgage payment workout 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 floods.

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 floods 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.

Fannie Mae

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