Disaster Information & Updates
Use the following shortcuts to access information
on recent disasters, and their affect on our industry:
Government Agency & GSE
Resources re 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.
DisasterAssistance.gov 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 Disastor 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: http://louisianaspeaks.org
> New Orleans City website offers info re demolition
process, answers to FAQs re demolition, etc.
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
Mississippi
Major Disastor
Declaration declared 8/29/12 re Hurricane Isaac
Mississippi Development Authority
> eNewsletter from the Governor's Office of Recovery and
Renewal (2/13/07) addresses MS Alternative Housing
Program, Temporary Housing Program Extension, Homeowner Grant Program,
New Director of Office of Recovery and Renewal, Mortgage Revenue Bond
Program, and Public Housing Funding.
Fannie
Mae
> 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
FEMA
> National Flood Insurance Program www.floodsmart.gov.
> List of Federal Disaster
Declarations with related information.
> Disaster Relief Policies
> FAQ's for Bulletins 2013-1, 2012-29, and
2012-26
> 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 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)
> News Release re
Relief for Gulf Coast Borrowers Affected by Oil Spill
(6/17/10)
> 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.
> FHLMC Special Hurricane Relief Web
page
HUD
NOTE: ALL OF HUD'S MORTGAGEE LETTERS
CAN BE FOUND here.
> HUD Disaster Resources
> 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 Connecticut, New Jersey, and New York Storm Victims due to
Hurricane Sandy. (10/31/12)
> 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: http://www.fema.gov/news/disasters.fema
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: http://portal.hud.gov/hudportal/HUD?src=/program_offices/administration/hudclips/handbooks/hsgh/4330.1
All FHA Mortgagee Letters can be found on-line at: http://www.hud.gov/offices/adm/hudclips/letters/mortgagee/
> USDA Emergency Preparedness and
Response
> 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 26-13-3 (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: www.fema.gov.
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: www.usdoj.gov/ust/r05. 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).
> 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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