Banks to Give Gulf Coast Mortgagees a Break
Fannie Mae and CitiMortgage announced today that they will grant relief to families affected by the BP oil disaster in the Gulf of Mexico by not foreclosing on their homes.
CitiMortgage announced that it will stop foreclosure sales and evictions until Sept. 17, 2010, and Fannie Mae said that its customers may suspend or reduce payments on their mortgages up to 90 days if their property is affected by the oil spill.
"We want to give homeowners every opportunity to weather this unprecedented disaster, including relief from their mortgage payment if that will help them get back on their feet and stay in their homes," said Michael J. Williams, President and CEO. "Our policy is in place to support those who are experiencing a disaster-related hardship through no fault of their own and are acting in good faith to meet their mortgage obligation."
Under the company's "Special Relief Measures" policy, servicers may suspend or reduce a borrower's payments for up to 90 days while the servicer determines the nature and extent of the impact the disaster is having on the condition of the property or on the borrower's financial condition. At the conclusion of that assessment, servicers have additional flexibilities to evaluate the appropriate loss mitigation alternative based on a case-by-case determination, including an additional three months of forbearance, a loan modification or other customized solution.
Vikram Pandit, Chief Executive Officer of Citi said, "By putting CitiMortgage foreclosures on hold, we aim to ease the burden on residents of the Gulf states so they can concentrate on the most urgent matters facing them. In the midst of this crisis, we will continue to explore ways to help people avoid foreclosure so they and their families can remain in their homes and have one less thing to worry about."Continued on the next page