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USFN 25th Anniversary

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Disaster Information & Updates

Use the following shortcuts to access information on recent disasters, and their affect on our industry:


Government Agency & GSE Resources re April 2014 Arkansas storm, November 2013 Midwest tornadoes, September 2013 Colorado floods, June 2013 Colorado Springs fire, May 2013 Oklahoma storms and tornados, 2012 Hurricane Sandy, historical info re Hurricanes Katrina and Rita, the 2010 Gulf Oil Crisis, 2011 Hurricane Irene, the 2011 Flooded and Tornado-Stricken Areas, and 2012 Hurricane Isaac. provides access to disaster help and resources.

OCC, FDIC, NCUA, Board of Governors of the Federal Reserve System -- Agencies issue Supplemental Statement on Supervisory Practices Regarding Financial Institutions and Borrowers Affected by Hurricane Sandy (11/14/12)

Louisiana and the City of New Orleans

>Major Disaster Declaration declared on 8/29/12 re Hurricane Isaac

>Louisiana Recovery Authority

>Irons v. US Bank, Inc., No. 2007-CA-0570 (La. Ct. App., 4th Cir.): Decision re borrower's attorneys' fees lien on hazard insurance proceeds. (8/14/07)
Louisiana's Road Home: Info re remittances from disbursement accounts of funds not used to record formerly-required Certificates of Final Disbursement (5/15/07); Fact Sheet re Changes in Covenants and Grant Agreements (4/20/07); Required language in letters re disbursement account releases (4/18/07); Homeownership Assistance Program Lender Memorandum of Understanding (11/16/06); Policy Amendments (April 2007)
>Louisiana HB 1289/Act No. 739: re time within which certain insurance claims must be filed. Has been signed by the governor. NOTE: On 7/10/06, Louisiana Attorney General filed a petition for declaratory judgment in the 19th Judicial District Court in Baton Rouge concerning this legislation.
>Louisiana HB 1302/Act No. 802    : re Hurricanes Katrina and Rita insurance claims. Has been signed by the governor. NOTE: On 7/10/06, Louisiana Attorney General filed a petition for declaratory judgment in the 19th Judicial District Court in Baton Rouge concerning this legislation.
>LA Dept. of Insurance Advisory Letter 06-04: re extending ins. claim filing deadlines (6/5/06).
House Bill 602 re prepayment penalties for consumer credit transactions & residential mortgage loans. 
> News re deadline to repair & secure property by 8/29/06: St. Bernard Parish
Act 21, effective 4/1/06 requires settlement payments on claims arising under homeowners' insurance be placed in interest-earning escrow accounts.
House Bill 15 would establish penalties for mortgage holders who fail to remit insurance settlement payments in excess of debt to the mortgagor.
House Bill 7 introduced 2/6/06, would prohibit mortgage holder from keeping more of the settlement proceeds from an insurance claim than are necessary to pay unpaid loan balance when settlement payment is made jointly to mortgage holder and mortgagor.
> Louisiana Recovery website: 
> New Orleans City website offers info re demolition process. Also see City of New Orleans Imminent Health Threat Ordinance Fact Sheet (March 20, 2007).
> Per Orleans Parish county clerk, address all mail to: Orleans Parish Recorder of Mortgages, 421 Loyola Ave., New Orleans, LA 70112
> U.S. BK Court, E. District of LA (New Orleans) -- Procedure for Secured Creditors re Receipt of Ins. Proceeds


Major Disastor Declaration declared 8/29/12 re Hurricane Isaac 

Mississippi Development Authority

Fannie Mae

Assistance in Disasters

Announcement SVC-2013-16 (8/7/13) -- Updates to Assistance in Disasters

Lender Letter LL-2013-03 (2/22/13) -- Updates to Insurance Claim Settlements

Lender Letter LL-2013-02 (1/31/13) -- Extension of Foreclosure and Eviction Moratorium related to Hurricane Sandy

Lender Letter LL-2012-12 (12/20/12) -- Mortgage Loans Impacted by Hurricane Sandy

Lender Letter LL-2012-09 (11/13/12) -- Additional Flexibilites for Mortgage Loans Impacted by Hurricane Sandy

Servicing Notice re Hurricane Sandy (10/31/12)

News Release re Relief for Homeowners Affected by the Gulf Oil Spill (6/16/10)

News Release re California wildfires (dated 10/25/07)

> FNMA Hurricane Relief Web page


> National Flood Insurance Program
> List of Federal Disaster Declarations with related information.

Freddie Mac

Disaster Relief Policies 

FAQ's for Bulletins 2013-1, 2012-29, and 2012-26

>Press Release (4/30/14) -- Extends Disaster Relief to Eligible Borrowers Harmed by Arkansas Storms

>Bulletin 2013-15 (8/15/13) -- provides special requirements for borrowers impacted by an eligible disaster, including the new capitalization and extension modification for disaster relief.

>Bulletin 2013-10 (6/14/13) -- announces Hurricane Sandy Exterior Property Inspection Reimbursement Template, must be submitted by 9/16/13  for reimbursement

Bulletin 2013-7 (5/13/13) -- includes "Updates to the Streamlined Modification Effective Date to Assist Borrowers Impacted by Hurricane Sandy

Bulletin 2013-4 (2/22/13) -- Temporary Property Insurance Claim Requirements for Properties Affected by Hurricane Sandy

Bulletin 2013-1 (1/31/13) -- Foreclosure Sale and Eviction Closeout Moratorium Extension Related to Hurricane Sandy 

Bulletin 2012-29 (12/18/12) -- Special Servicing Requirements Related to Hurricane Sandy

Bulletin 2012-26 (11/13/12) -- Servicing Requirements Related to Properties Affected by Hurricane Sandy and Other Disaster-Related Requirements

Freddie Mac Extends Mortgage Relief to Illinois Homeowners Affected by Tornadoes (11/27/13)

Freddie Mac Extends Mortgage Relief to Borrowers Affected by Hurricane Sandy (10/30/12)

Freddie Mac Extends Mortgage Relief to Borrowers Affected by Hurricane Irene (9/7/11)

Freddie Mac Extends Mortgage Relief to Borrowers Affected by Midwestern Storms (5/31/11)

> For information on Freddie Mac's disaster relief policies, see the  Single-Family Seller/Servicer Guide, Ch. 68, "Servicing Mortgages Impacted by a Disaster." Freddie Mac's disaster relief solutions include: short-term suspension of collection, foreclosure, and eviction proceedings for up to 12 months from the date a disaster strikes; not assessing late charges or reporting to credit repositories for borrowers on forbearance or repayment plans; and monitoring and coordinating the insurance claim process. If servicers have a unique situation that warrants special relief consideration, they should contact (800) FREDDIE or their Freddie Mac Servicing Representative.



> HUD Disaster Resources

>HUD -- Press Release --HUD No. 14-039 (4/29/14): HUD Secretary Announces Disaster Assistance for Arkansas Storm Victims

> HUD -- Press Release -- HUD No. 13-153 (10/28/13): HUD Announces Additional $5 Billion in Recovery Funds for Communities Impacted by Hurricane Sandy

HUD Mortgagee Letter 2013-36 (9/27/13): Eligible Properties in Presidentially Declared Major Disaster Area Super Storm Sandy for 203(k) insured mortgages

> HUD Mortgagee Letter 2013-11 (4/12/13): Additional Guidance for the Origination and Servicing of FHA-Insured Loans in Presidentially-Declared Major Disaster Areas and Specific Requirement for Hurricane Sandy Affected Communities.  

> FHA Mortgagee Letter 2013-06 (1/31/13): Extension of Disaster Moratorium & Suspension of Evictions for Specified Properties Impacted by Hurricane Sandy, plus HUD & FHFA Announce Extended Relief to Borrowers Affected by Hurricane Sandy (1/31/13)

> HUD Announces Foreclosure Protection for ConnecticutNew Jersey, and New York Storm Victims
due to Hurricane Sandy. (10/31/12)

>HUD Mortgagee Letter 2012-28 (12/11/12) is a Restatement and Update of Flood Zone Requirements for FHA Insured Housing

> HUD Mortgagee Letter 2012-23 (11/16/12) provides Guidance for FHA-Approved Mortgagees Originating and Servicing Mortgages in Presidentially-Declared Major Disaster Areas 

> HUD Mortgagee Letter 2012-19 (9/20/12) is a Hazard and Flood Insurance Requirement Reminder. All of HUD's Mortgagee Letters can be found here.

> HUD Announces Disaster Assistance for Rhode Island Storm Victims -- Foreclosure protection offered in four counties (3/31/10)
> HUD's Announcement re assistance to victims of California wildfires (10/24/07)
> HUD's Hurricane Katrina Resource Page

REMINDER FROM HUD (5/10/11) --  to FHA servicers on Disaster Servicing

HUD Guidance to Mortgagees Working With FHA Borrowers Who are Disaster Victims:

Mortgagees are reminded that pursuant to Mortgagee Letter 2001-07, a 90-day moratorium on foreclosures is automatically imposed on FHA-insured properties in Presidentially Declared Disaster Areas. The effective date of the moratorium is the declaration date and the mortgagee must contact the Federal Emergency Management Agency (FEMA) to obtain a list of specific counties and their corresponding declaration dates. This information can be found at: or by calling a local FEMA office. Additional information on Presidentially Declared Disaster Areas is found in Chapter 14 of HUD Handbook 4330.1, Rev-5, Administration of Insured Home Mortgages, restated most recently in Mortgagee Letter 05-33.

Mortgagees must also offer the FHA Type 1 Special Forbearance to eligible borrowers.  FHA Type 1 Special Forbearance provides relief to borrowers by suspending or reducing their mortgage payments for a period sufficient to allow them to recover from the cause of default.  Late fees are not to be assessed while the borrower is making timely payments.  Mortgagee Letter 2002-17 details the criteria for using FHA’s Type1 Special Forbearance. If a borrower does not qualify for a special forbearance, the mortgagee should review the borrower’s loan for the most appropriate loss mitigation tool, including but not limited to, a loan modification, partial claim, or FHA’s Making Home Affordable Modification Program (FHA-HAMP).  Any questions or clarifications regarding this guidance should be directed to HUD’s National Servicing Center at: 877-622-8525.

Read HUD Handbook 4330.1, Rev-5, “Administration of Insured Home Mortgages” on-line at:

All FHA Mortgagee Letters can be found on-line at:

USDA - Rural Development

> USDA Emergency Preparedness and Response

News Release (12/18/13) USDA Brings Additional Relief to Landowners Affected by Hurricane Sandy Second Round of Conservation Easement Applications to be Accepted in 2014

> Relief to Borrowers Affected by the Florida Tornados of February 2, 2007 (See Letter dated 2/8/07


VA Loan Guaranty Policy Regarding Natural Disasters

>Circular 26-13-26 (12/3/13) Special Relief Following the Midwest Tornadoes

>Circular 26-13-16 (9/19/13) Special Relief Following Flooding in Colorado

>Circular 26-13-11 (6/17/13) Special Relief Following the Colorado Springs Fire

Circular 26-13-3 (2/5/13) Continued Forbearance due to Hurricane Sandy

Circular 26-12-10 (11/1/12) Special Relief Following Hurricane Sandy

Circular 26-12-9 (11/9/12) See subsection (g) re Assistance to Veterans Affected by Natural Disasters.

VA Announcement (5/26/11) Disaster Assistance after Tornado Outbreaks: Help Available for Veterans in Joplin, MO 

Circular 26-11-6 (5/4/11) Additional Relief Following Tornado Outbreaks

Circular 26-10-8 (6/23/10) Relief for Veteran Homeowners affected by the Gulf Oil Crisis

More information about disaster areas can be found at the FEMA website:

State Rulings on Insurance Deductibles

Connecticut (11/1/12)

DC (10/30/12)

Delaware (11/2/12)

Maryland (10/30/12)

New Jersey (11/2/12)

New York (11/1/12)

Pennsylvania (11/1/12)

Rhode Island (10/30/12)

Further Hurricane Katrina Resources Relevant to the Industry
> Leonard v. Nationwide Mutual Insurance Company, Civil Action No. 1:05CV475 LTS-RHW, Memorandum Opinion (S.D. Miss. Aug. 15, 2006). Court addressed cause and extent of damage, and whether Nationwide is legally obligated to reimburse the plaintiffs for any or all of damage.
> Flood Insurance Reform and Modernization Act of 2006 (FIRM), HR 4973
> Hurricanes Katrina & Rita Flood Insurance Buy-in Act of 2005, HR 3922
> Questions re local U.S. Trustee's Office: New Orleans Ch. 13 cases: see website for Ch. 13 trustee S.J. Beaulieu, Jr.
> FEMA Hurricane Katrina ins. coverage issues: Americans for Insurance Reform report on Insurance Industry's Failed Response to Hurricane Katrina, with recommendations (1/11/06).

USFN Articles/ Other Articles

Fannie, Freddie Order Additional Relief for Sandy Victims 

> Hurricane Sandy Impact Lessons Learned from Hurricane Katrina (Spring '13 USFN Report)      

Close-up View of Hurricane Katrina: the Impact on Mississippi Foreclosures (Winter '06 USFN Report)
Hurricanes Katrina and Rita -- Legal Deadlines Extended in Louisiana (Nov/Dec '05 e-Update) 


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