Mortgages Secured by Properties in Areas Affected by Hurricane Harvey
August 29, 2017
In light of the devastation caused by Hurricane Harvey, if you have mortgages secured by properties in the affected areas that are in the delivery pipeline and you are not able to represent and warrant that a mortgage meets our requirements, you should remove that mortgage from a Guarantor pool or Cash commitment.
Additionally, you should review our requirements related to properties affected by disasters to prepare to address impacted mortgages you originated and planned to sell to us.
While it’s premature to determine the full impact of Hurricane Harvey, we encourage you to review the applicable sections of the Single Family Seller/Servicer Guide (Guide) and your procedures for inspecting and updating a property’s value, condition and marketability when a major disaster or emergency occurs.
- Guide Section 5601.2 (c) - Requirements for properties affected by disasters
- Guide Section 5601.2 (b) - Requirements for incomplete property improvements
- Guide Section 4201.13 - Circumstances that adversely affect the value of the property
We rely on you to determine the number of mortgages secured by impacted properties and the extent of damage to each property that may affect its acceptability as security for the mortgage.
As we continue to closely monitor the situation, we are grateful to our Seller/Servicers who are responding to requests for assistance from borrowers who are facing unexpected hardships due to the effects of the hurricane.