Fannie Mae, Freddie Mac, HUD talk Hurricane Helene relief details

Fannie Mae, Freddie Mac and the U.S. Department of Housing and Urban Development have announced mortgage relief measures to assist homeowners across three Southeastern states in the wake of Hurricane Helene. 

For borrowers with properties within designated disaster areas in Florida, North Carolina and South Carolina, HUD is imposing a 90-day foreclosure moratorium on mortgages backed by the Federal Housing Administration, effective immediately.

The moratorium also covers loans taken out through the federal government's Section 184 Indian Home Loan Guarantee program. A 90-day extension period was also automatically granted for Home Equity Conversion Mortgage borrowers in the designated disaster zones.  

On Sunday, President Biden declared a total of 56 counties or tribal areas that bore the brunt of the storm in Florida, North Carolina and South Carolina disaster areas, immediately making the moratorium and other federal assistance available to local residents and jurisdictions. 

Homeowners in 26 areas in North Carolina are eligible for moratorium relief under the HUD directive. There are 17 designated disaster counties in Florida and in South Carolina, 13 counties fall under the president's disaster declaration. HUD is advising eligible borrowers in affected counties to contact their lender or servicer directly to receive foreclosure assistance. 

Fannie Mae and Freddie Mac also issued reminders to homeowners and servicers of forbearance options that can be made available to victims of the storm. Mortgage borrowers impacted by natural disasters can often enter forbearance plans, suspending payments for up to one year. 

Borrower assistance may also be available to homeowners residing outside designated zones, but whose place of employment lies within them, the government-sponsored enterprises said. 

Fannie Mae also reminded servicers in instances where no contact can be established with a borrower likely affected by a natural disaster, they are authorized to offer forbearance for up to 90 days.

Hurricane Helene first made landfall in Florida on Thursday before heading north, carving a 600-mile wide swath of destruction across several states. The deadliest hurricane to hit the U.S. in at least two years, Helene has so far resulted in 133 deaths as of Tuesday morning, with the number expected to rise. 

Initial estimates of the hurricane's destruction published late last week found the cost of property damage in coastal areas of Florida and Georgia alone to be between $3 and $5 billion, according to Corelogic. Data provided at that time did not include many of the inland areas covered by the Biden administration's disaster declaration.