There’s No Place Like Home

The relief is available to borrowers affected by tornado damage in Morgan, Cumberland, and Anderson counties, the company announced on Wednesday.

“Residents of our impacted areas will have a tough struggle to recover from the effects of this devastating tornado,” said Ralph Perrey, director of Fannie’s Tennessee Partnership Office. “And, we are doing all that we can to assure that homeowners in the disaster areas will not have the additional burden of making payments on homes that were destroyed.”

Among other provisions, Fannie’s disaster relief allows lenders to suspend mortgage payments for up to three months; reduce payments for up to 18 months; or create longer loan payback plans, which would result in a lower monthly payment, the announcement said. Changes to victims’ loan terms will be made on a case-by-case basis.

When determining what kind of relief to give borrowers, mortgage lenders doing business with Fannie Mae will consider uninsured losses, extended unemployment, and extraordinary expenses related to the tornadoes that affect mortgage payments.

Fannie officials chose Morgan, Cumberland, and Anderson counties based on the level of devastation in those areas, said Renee’ Bayne, a regional communications manager at Fannie. If other counties touched by the tornados end up with similar needs, they also would be eligible for relief, she said.

From late Saturday night through Monday, tornados sliced through 13 Southern and Great Lake states, killing at least 35 people, The Associated Press reported. Twelve people were killed in Alabama, five in Ohio, and one each in Pennsylvania and Mississippi. Storms hit Tennessee the worst, claiming 16 lives and injuring at least 80, according to Memphis’ The Commercial Appeal online edition. CNN.com reported that all the missing have been found.

Of the Tennessee storms, the northeastern county of Morgan saw the most devastation, especially its remote town of Mossy Grove. An F3 tornado with estimated winds of 175 mph cut a 200 to 300-yard swath across the county, killing seven people, according to The Commercial Appeal. Statewide, 100 homes were destroyed, 50 of them in Morgan County.

By comparison, the American Red Cross estimated that at least 138 homes, mobile homes, and apartments were destroyed in 17 Ohio counties, CNN.com reported. In northwest Ohio, winds topping 207 mph leveled a movie theater but left rows of blue seats intact. Movie patrons kept safe by moving into the interior of the building and into the bathrooms.

Of the other two Tennessee counties eligible for relief from Fannie, four people died in Cumberland County on Sunday night, and an F1 tornado hit Anderson County, according to The Commercial Appeal.

Fannie has instructed lenders to counsel borrowers about all mortgage payment options and to let homeowners know of disaster relief available from federal agencies. Payment relief is available for single-family mortgages, including condos, serviced by Fannie Mae lenders, the announcement said.

Holders of Fannie mortgage securities will be paid as usual during the relief period.