When Hurricane Michael slammed into the Florida panhandle on October 10, the mortgage industry was prepared. Before the storm even made landfall, the FDIC issued a statement reminding lenders that they were expected to work with affected mortgage holders.

Freddie Mac and Fannie Mae reassured homeowners that they had options for mortgage assistance if they were affected by the storm. Both GSEs were given the authority to reduce or even suspend mortgage payments for up to 90 days if they believe a homeowner has been negatively impacted. Eligible borrowers can waive payments or freeze foreclosure proceedings for up to 12 months.

“Fannie Mae and our lending and servicing partners are focused on ensuring assistance is offered to individuals and families in need,” said Carlos Perez, SVP and Chief Credit Officer at Fannie Mae. “We encourage homeowners affected by the storm to contact their mortgage servicer for assistance as soon as possible.”

At a Category 4 hurricane, Michael pummeled the panhandle with wind gusts surpassing 150 mph. It was the strongest storm to hit the continental United States since Hurricane Andrew decimated parts of South Florida in 1992.

Early estimates of insured losses range from $2 billion to $10 billion. At least 35 people are confirmed dead and more than 500 are still missing weeks after the storm.

Officials estimate that more than 4,000 homes were destroyed and 16,000 damaged. According to ClosingCorp, at least 1,600 mortgage applications (representing $400 million originated by more than 100 different lenders) with closing dates between now and the end of the year are in jeopardy.

“In many cases, new inspections and often new appraisals will be required before the mortgages can be approved and the sales completed,” ClosingCorp said. “In some instances, the damage will result in significant delays or cause deals to fall apart.”

The coming months will reveal the true extent of the damage. In the meantime, let Blue Streak Docs manage your document retrieval and property reports to help you protect your portfolio. If you haven’t worked with us yet, try us out and get your 5th order FREE!