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Title: Information for Homeowners from Mortgage Lenders
Source: MBA
Date: 12/9/2005

Information for Homeowners from Mortgage Lenders

In the wake of the unprecedented tragedy in the states hit by the destructive hurricanes this fall, the lending industry continues to work to help all affected homeowners recover and rebuild their homes and communities.

The most important thing for any homeowner to do is to contact his or her lender as soon as possible if they are not already working with their lender.  Lenders will continue to reach out to borrowers as well through proactive phone campaigns, advertising and by mailing statements and other measures.   We want to reassure the people of the Gulf Coast that help is still available to homeowners who need it.  We remain committed to working with borrowers to re-build in their communities where possible, as well as those who have started lives in different communities.   The industry, the federal banking regulators, the Department of Housing and Urban Development, the Department of Veterans Affairs, and Freddie Mac and Fannie Mae have worked cooperatively to assist affected consumers by providing clarifications and guidance on important issues for borrowers affected by the disaster. Although individual circumstances will differ, assistance for borrowers may include:  
  • Working to help borrowers who are unable to make their payments due to insurance issues or employment status.
 
  • Providing additional time for borrowers to repay their loans if their properties are uninhabitable because of structural damage from the hurricane.
  • Additional time for repayment for borrowers whose situations are impossible to determine at this time, provided the borrowers contact their lenders and let them know they have an interest in working out the loan.
  • Customized repayment plans for missed payments, tailored to each borrower's individual circumstances.
 
  • Assistance in avoiding foreclosure proceedings. Foreclosures are not a good solution for borrowers, communities or lenders; they are only used when all other options have been exhausted.
 
  • Most lenders do not anticipate filing reports with the credit bureaus based on Katrina affected late payments at this time
  Borrowers who are able to pay their mortgage should continue to do so, however for those who can't, additional assistance is available for those in the hurricane-affected areas.  The most important thing for any homeowner to do is to contact his or her lender as soon as possible if they are not already working with their lender.   This statement was issued by: The Coalition for Fair and Affordable Lending The Consumer Mortgage Coalition The Financial Services Roundtable Mortgage Bankers Association  

 

The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 500,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation`s residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 3,000 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA`s Web site:   www.mortgagebankers.org.

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The Mortgage Bankers Association (MBA) is the national association representing the real estate finance industry, an industry that employs more than 280,000 people in virtually every community in the country. Headquartered in Washington, D.C., the association works to ensure the continued strength of the nation's residential and commercial real estate markets; to expand homeownership and extend access to affordable housing to all Americans. MBA promotes fair and ethical lending practices and fosters professional excellence among real estate finance employees through a wide range of educational programs and a variety of publications. Its membership of over 2,200 companies includes all elements of real estate finance: mortgage companies, mortgage brokers, commercial banks, thrifts, Wall Street conduits, life insurance companies and others in the mortgage lending field. For additional information, visit MBA's Web site:  www.mortgagebankers.org.




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