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FANNIE MAE MAKES AVAILABLE SPECIAL MORTGAGE RELIEF FOR HOMEOWNERS AFFECTED BY MIDWESTERN FLOODS

 WASHINGTON, July 16 /PRNewswire/ -- The Federal National Mortgage Association (Fannie Mae) (NYSE: FNM) today announced it is making available special mortgage relief provisions for homeowners whose homes have been damaged or livelihoods affected by the severe flooding in the Midwest, particularly of the Mississippi River and its tributaries.
 Fannie Mae's standard loan guidelines include a number of provisions designed to help borrowers facing financial difficulties in general. In addition, the company has implemented special relief measures available to homeowners affected by major disasters whose mortgages have been sold to the company.
 Ann D. Logan, Fannie Mae executive vice president and chief credit officer, said, "Recognizing the severe hardships imposed on families because of this flooding, Fannie Mae will implement immediately its special relief provisions similar to those established following the devastation caused by Hurricane Andrew last year."
 The special mortgage relief provisions include the following:
 -- Mortgage lenders will work with borrowers to determine the impact
 of flooding on their homes and ability to make mortgage payments.
 -- Mortgage lenders will offer specific relief to borrowers whose
 incomes are so disrupted that meeting their full monthly mortgage
 payments on time is difficult.
 -- Relief measures might include, depending on individual family
 circumstances, temporary indulgence (late payments), special
 forbearance (temporary cessation of mortgage payments), and loan
 modifications, among other options.
 -- Lenders will not report to credit bureaus late payments
 attributable to flood hardships.
 -- Lenders may waive late payment charges when such payments are the
 result of flood hardships.
 Additional relief provisions include mortgage lenders informing homeowners of disaster relief available from federal, state, and local governments; encouraging mortgage lenders to work with borrowers to promptly file any insurance claims applicable and to receive disbursements as quickly as possible; and working with borrowers who were experiencing payment problems before being affected by the floods. Homeowners should call their lenders to determine if Fannie Mae holds their mortgages.
 Logan said: "We are confident that our lenders will demonstrate the same sensitivity to these very trying circumstances as they did in South Florida and the Gulf States in the aftermath of Hurricane Andrew. We hope our mortgage relief procedures will play a role in helping to clear the way for homeowners facing hardship from the floods to get back on their feet as quickly as possible. Borrowers who have been affected by the flooding should contact their mortgage lender for more information."
 Fannie Mae doesn't lend money directly to consumers; instead, the company makes mortgage funds available through lenders such as mortgage companies, banks, thrifts, and others.
 Fannie Mae is a congressionally chartered, shareholder-owned company, and is the nation's largest source of funds for home mortgages.
 -0- 7/16/93
 /CONTACT: Tom Marder of Fannie Mae, 202-752-7608/


CO: Federal National Mortgage Association ST: District of Columbia IN: FIN SU:

IH-DC -- DC018 -- 2490 07/16/93 13:01 EDT
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Date:Jul 16, 1993
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