Freddie Mac and Fannie Mae are offering mortgage relief options to borrowers affected by the Southern California wildfires and urging homeowners to act now.
On Monday, the government-backed mortgage giants said impacted homeowners should reach out to their mortgage servicers, or the companies who handle their monthly mortgage payments, as soon as they can.
Under forbearance programs, homeowners who hold single-family mortgages through either company could be eligible for up to 12 months of relief without late fees or penalties, Fannie and Freddie said.
“We are committed to supporting homeowners, renters and communities in need during this challenging time,” Cyndi Danko, senior vice president and chief credit officer of single-family loans for Fannie Mae, said in a statement. “If homeowners have been impacted by the fires, we encourage them to call their mortgage servicer for assistance as soon as possible.”
Both firms said they offer forbearance plans for borrowers – which are temporary arrangements that allow a pause on mortgage payments without any penalty. Those plans can be extended up to 12 months in most cases, and there are various options for repayment once they expire including a lump sum payment, payment deferral or loan modification.
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“The number one priority for those affected by the destruction of these ongoing wildfires is to reach safety,” said Mike Reynolds, Freddie Mac’s single-family vice president and head of servicing, in a statement. “Freddie Mac and our partners stand ready to provide immediate assistance and aid in the recovery of families and individuals.”
For more information, borrowers with a Fannie Mae mortgage can call Fannie Mae’s disaster recovery counseling line at 855-437-3243 or visit the Fannie Mae website for details.
Borrowers with a Freddie Mac mortgage can find more information on the My Home by Freddie Mac page.
At least one major private lender said Monday it would offer disaster forbearance to borrowers impacted by the fires. Chase Home Lending, a division of JPMorgan Chase, said customers affected by the wildfires would be able to temporarily pause payments on their loans or pay lower amounts.
Forbearance will last three months initially and can be extended in three-month increments for up to a year, Chase said. During that time, customers will be protected from fees, foreclosures and negative credit reporting.
Borrowers interested in applying for disaster forbearance through the bank should visit this website or call the Chase Special Care Line at 1-800-254-7713. Once a request is made, it will be reviewed within two business days.
As of Monday morning, the fires that started last week in the Los Angeles area had burned more than 40,500 acres and destroyed more than 12,000 structures, according to the California Department of Forestry and Fire Protection. Parts of the region will remain under a red flag alert until at least Wednesday as strong winds are expected.
