BLOG

Disaster events are unpredictable. What can be predicted, however, are the ways to move forward as a FNMA seller/servicer. When a significant disaster occurs which adversely affects either the value of mortgaged properties or their habitability OR a borrower's ability to make further mortgage payments (full or partial) FNMA may issue special announcements such as press releases, Guide Announcements, Lender Letters, or Notices with updates or temporary relief policies.

In addition to event specific notifications, FNMA has standing policies in place covering disasters in both the Selling Guide and the Servicing Guide. The Lender/Servicer FAQs provide additional information narrowed down by topic and incorporates recent updates from April 2019.

Government agencies often work together in times of disaster and as such, FNMA references guidance from FEMA along with HUD as external resources.  Best practices to adopt include having an internal preparedness plan in place in conjunction with being as proactive as possible with compliant communication.

If you are concerned that your Disaster Response plan or practices aren’t what they should be, let us put your mind at ease. Contact resources@mqmrnews.com to discuss how MQMR and our servicing focused sister company, Subsequent QC, can help you identify your risk and recommend the appropriate controls to leave your organization better protected. Let us help you climb higher!