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FANNIE MAE ANNOUNCES SPECIAL MORTGAGE RELIEF FOR HOMEOWNERS AFFECTED BY THE SOUTHERN CALIFORNIA EARTHQUAKE

 WASHINGTON, Jan. 18 /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 January 17 "Northridge" earthquake in Southern California.
 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, "Fannie Mae recognizes the severe hardships imposed on families because of the earthquake and will implement immediately its special relief provisions to help borrowers."
 The special mortgage relief provisions include the following:
 -- Mortgage lenders will work with borrowers to determine the earthquake damage to 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.
 -- Lenders will not report to credit bureaus late payments attributable to earthquake-related hardships.
 -- Lenders may waive late payment charges when such payments are the result of earthquake-related hardships.
 -- Relief measures might include, depending on individual family circumstances, temporary indulgence (delayed payments), special forbearance (temporary suspension of mortgage payments), and loan modifications.
 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 applicable insurance claims and to receive disbursements as quickly as possible; and working with borrowers who were experiencing payment problems before being affected by the earthquake. Homeowners should call their lenders to determine if Fannie Mae holds their mortgages.
 Logan said, "We are confident that our lenders will apply the same compassion in these very trying circumstances as they did during last year's flooding in the Midwest, and in South Florida and the Gulf States in the aftermath of Hurricane Andrew. We hope our mortgage relief procedures will help homeowners facing hardship from the earthquake to get back on their feet as quickly as possible."
 Fannie Mae is a congressionally chartered, shareholder-owned company, and is the nation's largest source of home mortgage funds.
 -0- 1/18/94
 /CONTACT: Tom Marder, 202-752-7608, or Kevin Hawkins, 202-752-6720, both of Fannie Mae/
 (FNM)


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

DC-KD -- DC023 -- 2952 01/18/94 17:04 EST
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Publication:PR Newswire
Date:Jan 18, 1994
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