From MuniReg
Good Afternoon,
I would like to take a moment to share information, that I believe will be of value to your residents.
Typically this type of information is regionalized following a natural disaster, however with the national emergency we are experiencing, this information has national relevance.
As you share the constantly evolving information with your constituents please consider including the following that hopefully will lessen at least one of their burdens.
The information is also posted on our website and will be updated as needed.
Mortgage Relief
The primary “Investors/Insurers” have issued guidance to loan servicers (banks) on possible forbearance for homeowners who are experiencing financial hardships as a result of Coronavirus disease (COVID-19). Additionally the OCC has issued guidance addressing mortgages and banking.
Please see the following links:
HUD (FHA Insured Mortgage): https://www.hud.gov/sites/dfiles/Main/documents/LossMitigation-Guidance-Single-Family-Stakeholders-March2019.pdf
VA (Veterans Administration Insured Mortgages): – N/A
Fannie Mae: https://singlefamily.fanniemae.com/servicing
“We are actively monitoring reports about the possible spread of the coronavirus (i.e., COVID-19) in the United States, and understand that you may have concerns about its potential impact on borrowers and your business. We want to remind servicers that you can offer forbearance in accordance with our existing policies to assist borrowers who are unable to make their monthly mortgage loan payment as a result of a temporary hardship (for example, if a borrower is quarantined and unable to work). The servicer should evaluate the borrower for a forbearance plan or other workout assistance in accordance with our existing requirements. View our Servicing Workout Hierarchy for details”Freddie Mac: N/A
FHFA (The Federal Housing Finance Agency regulates Fannie Mae, Freddie Mac and the 11 Federal Home Loan Banks) https://www.fhfa.gov/Media/PublicAffairs/Pages/Statement-from-FHFA-Director-Mark-Calabria-on-Coronavirus.aspx
OCC: https://www.occ.gov/news-issuances/bulletins/2020/bulletin-2020-15.html
General Guidance for Natural Disasters (provides general insight into policies and procedures regarding assisting homeowners with foreclosure avoidance
HUD https://www.hud.gov/program_offices/housing/sfh/nsc/qaho0121
VA https://www.benefits.va.gov/homeloans/documents/docs/va_policy_regarding_natural_disasters.pdf
Fannie Mae https://www.fanniemae.com/portal/about-fm/disaster-help-for-homeowners.html
Freddie Mac https://sf.freddiemac.com/general/disaster-relief
Avoiding Scams - Housing Counseling
Calling a loan servicer directly to discuss forebearnce options can generally be done without assistance (ensure you receive written confirmation of any agreement), however any discussions regarding loan modifications should be done with assistance.
HUD provides counseling assistance at no-cost.
Beware of scams offering to assist in reducing loan payments, avoiding foreclosure etc that charge a fee!!
For information on HUD Counseling Agencies including how to locate the nearest office, please see following link https://www.hud.gov/i_want_to/talk_to_a_housing_counselor
Additionally you can contact http://www.hopenow.com/about-us.php - HOPENOW also has additional information of value including this from the Dept/ of Laborhttp://www.hopenow.com/pdf/DUA_Pamphlet_0414.pdf
Related Media Articles:
3/15/20 American Banker “Calls mount for U.S. to halt foreclosures, evictions amid health crisis"
3/13/20 Forbes “Mortgage Relief Options Are Available To Homeowners Affected By Coronavirus Safety Measures"
Please note: There is additional information that is relevant to local government from these entities (specifically HUD) including eligible usage of CDBG funds (click here)
If there is any additional information I can provide please do not hesitate to let me know
My thoughts and prayers are with you and your respective communities.
Michael S. Halpern
President
MuniReg LLC
Vacant Property Registration Program Administration
216-407-9296