HUD renters: Section 8 voucher holders and public housing residents from declared disaster areas should call 1-800-955-2232 for HUD assistance. Public housing authorities in other places will help house displaced tenants.
HUD Guidance for Voucher Recipients and Public Housing Residents (.pdf file)
HUD’s Mortgage Assistance Initiative: HUD will make mortgage payments for up to one year for disaster victims with FHA-insured mortgages who:
- have a property that is damaged by the hurricanes but can be rebuilt given adequate time;
- have access to funds from insurance proceeds, loans or personal resources to complete the repairs; and
- are currently employed or are very likely to return to work within a short period of time.
FHA-insured families in disaster areas whose houses are not damaged, but have lost their source of income as a result of the hurricanes, are also eligible. These payments are considered to be no-interest loans, and will have to be repaid by homeowners after their FHA-insured loans are repaid.
A homeowner with an FHA-insured mortgage should contact the bank or mortgage company that collects mortgage payments to get more information about this option. HUD’s press release and a factsheet are available here.
HUD fair housing reminder for Gulf Coast: An October 25 letter from Kim Kendrick, HUD’s new head of fair housing, reminds housing providers they are subject to the Fair Housing Act and other nondiscrimination laws. Call HUD’s fair housing hotline at 1-800-669-9777 or visit http://www.hud.gov/fairhousing.
Mortgage Forbearance and Foreclosure Suspensions Extended: HUD has extended its moratorium on foreclosures of homes with Federal Housing Administration (FHA) insurance to February 28, 2006. HUD also encourages FHA lenders to help borrowers in other ways, such as assisting with hazard and flood insurance filings, waiving late charges, and modifying mortgages. For additional information, FHA-insured homeowners can contact HUD's National Servicing Center at 1-888-297-8685. HUD’s press release is available here, and official notices are here.
Freddie Mac likewise has extended its foreclosure moratorium to February 28. It has established other protections for homeowners, including directing servicers (banks or mortgage companies that collect payments on mortgages owned by Freddie Mac) not to report any delinquent payments to credit reporting agencies until that date. Details are available here.
Fannie Mae’s foreclosure moratorium is extended for the same time period, and its servicers have the discretion to extend leniency on payments for up to 18 months, according to a Fannie Mae representative speaking on a conference call sponsored by national housing organizations, summarized here.
Encouragement for lender leniency comes also from the federal agencies that regulate banks, thrifts, and credit unions. In a joint press release, the regulators encouraged lenders to consider extending payment deferments and to provide flexible terms for repaying the deferred payments. This November 30 release and other documents are available at http://www.ffiec.gov/katrina.htm.
These actions apply only in places declared disaster areas as a result of Hurricane Katrina or Hurricane Rita. Residents of Hurricane Wilma disaster areas should check with the agencies to determine what provisions apply to them.
USDA has reallocated existing funds to cover a number of hurricane relief efforts, including housing. The Rural Housing Service will get $37 million to provide housing repair grants and loans to low-income rural homeowners and to replenish rental assistance accounts drawn down to provide temporary housing assistance immediately following the hurricanes. USDA’s press release is available here.
USDA Rural Development reports it has about 50,000 direct borrowers
and 50,000 guaranteed borrowers in the hardest hit areas. It declared a six-month moratorium on mortgage payments for Section 502 and 504 direct borrowers in the presidentially declared disaster areas, and urges guaranteed lenders to cease foreclosures and offer payment forbearance. Tenants in RD rental properties will
receive top priority for RD units in the rest of the country, and Rental Assistance
can be transferred. Details and local office contact information are at http://www.rurdev.usda.gov/rd/disasters/katrina.html, or call 1-800-414-1226.
MFH Guidance Relating to Hurricane Katrina (AL, AR, FL, GA, LA, MS, MO, TN and TX), memo of 9/1/2005
RD Unnumbered Letters dealing with hurricane relief
