Fannie Mae Announces Grants to American Red Cross Chapters in Los Angeles, San Diego, and San Bernardino Counties; Mortgage Relief Available for Victims of California Wildfires

WASHINGTON, DC -- Fannie Mae (FNM/NYSE) has mortgage relief provisions in place for borrowers facing hardships as a result of the California wildfires that began this week and have caused widespread damage throughout several counties in Southern California.

In addition, Fannie Mae, through its office of Community and Charitable Giving, announced grants totaling $150,000 to American Red Cross chapters in Los Angeles, San Diego, and San Bernardino Counties. These chapters are providing emergency shelter, food, and assistance to the hundreds of thousands of Californians who have been displaced. In addition, Fannie Mae will conduct a matching gifts campaign for Fannie Mae employees who wish to contribute to these Red Cross chapters through the end of the year.

"Fannie Mae expresses its sympathy for the families and individuals affected by the California wildfires," said Stacey D. Stewart, Senior Vice President, Office of Community and Charitable Giving.

Using Fannie Mae's single-family servicing guidelines on disaster relief, lenders are to evaluate each individual case to determine the appropriate relief measures needed if borrowers are unable to make their mortgage payments. These may include suspending or reducing the borrower's mortgage payments for up to four months and/or offering mortgage loan repayment plans that may extend for up to 18 months. Such assistance is designed to meet the individual needs of single-family mortgage borrowers.

Fannie Mae's servicing guidelines also advise lenders to counsel borrowers on the availability of appropriate relief provisions, and to inform borrowers of disaster relief available from federal agencies. Payment relief may be available for single-family mortgages (including condominiums) serviced by Fannie Mae lenders in areas affected by the California wildfires.

Helping borrowers take care of their existing home and mortgage obligation continues to be the most important work for our customers and for Fannie Mae. Homeowners who have experienced disaster hardships should contact the lender to whom they send their monthly mortgage payment. Our Resource Center can answer additional questions: 1-800-7FANNIE.