In the wake of Hurricane Sandy, Fannie Mae and Freddie Mac have reached out to their servicers, urging them to adopt mortgage-relief policies for homeowners severely impacted by Hurricane Sandy.
Beginning on November 1, 2010, Fannie Mae will no longer consider unemployment benefits as income for borrowers applying for HAMP. Fannie hopes that the new restriction will serve to curb the large number of HAMP redefaults. This will also mean that fewer borrowers will qualify for the federal modification effort.
Banks have same restrictions
Fannie Mae and Freddie Mac recently announced some mortgage relief for homeowners impacted by the BP oil spill. According to financial expert Peter Miller, the relief is in line with other typical mortgage forbearance granted during natural disasters.
Basically, both Fannie and Freddie have given servicers the option to suspend or reduce mortgage payments for borrowers directly affected by the spill.