Greensboro, N.C.-based United Guaranty has initiated a disaster policy related to loans currently in process, and the company has announced that it will work with mortgage lenders and servicers to provide flexibility for borrowers who have encountered severe property damage and interrupted employment.
According to the company, United Guaranty's disaster policy related to new originations and Home Affordable Refinance Program refinances follows that of Fannie Mae and Freddie Mac. Forbearance measures to prevent foreclosure actions on those coping with storm damage should follow the procedures on dealing with homeowners affected by disasters, natural or otherwise, found in the guidelines established by Fannie Mae and Freddie Mac. Servicers will not need prior approval from United Guaranty for workout terms on individual cases in these guidelines.
‘As homeowners along the East Coast begin to assess damage, this action gives our master policy holders a great deal of latitude in serving borrowers in declared disaster areas,’ says Brian Gould, senior vice president of loss management, underwriting and servicing. ‘With widespread property damage, people in these areas have a lot to cope with in terms of repairs and work interruptions. In working with lenders whose customers have been affected, we are prepared to accept a range of reasonable solutions where mortgage payment is concerned.’