WASHINGTON, DC -- Fannie Mae (FNM/NYSE) has mortgage relief provisions in place for Pennsylvania borrowers facing hardships as a result of the flooding and mudslides that began on June 23, 2006 and have caused widespread damage throughout the Commonwealth.

Using Fannie Mae's servicing guidelines on disaster relief, lenders evaluate each individual case to determine the appropriate relief measures needed which may include suspending the borrower's mortgage payments for up to three months, reducing the borrower's mortgage payments for up to 18 months, or in more severe cases, creating an extended loan payback plan for the borrower. Such assistance is designed to meet the individual needs of borrowers.

Fannie Mae's servicing guidelines also advise lenders to counsel borrowers on all possible mortgage payment work-out options, and to inform borrowers of disaster relief available from federal agencies. Payment relief may be available for single-family mortgages (including condos) serviced by Fannie Mae lenders in areas affected by the flooding in Pennsylvania. Holders of Fannie Mae mortgage securities will be paid in accordance with the terms of the securities during the disaster relief period.

Mortgage lenders doing business with Fannie Mae will, according to Fannie Mae's servicing guidelines, determine appropriate disaster relief steps by considering:

• any uninsured losses;
• extended unemployment; and
• extraordinary expenses related to the flooding and mudslides that affect mortgage payments.

For information on mortgage relief, homeowners who have experienced disaster hardships should contact the lender to whom they send their monthly mortgage payment.