HUD/FHA Resources for Oklahoma Counties Impacted by Severe Storms and Tornadoes
by: Michelle Peters
Due to the severe storms and tornadoes that occurred on May 20, 2013, Cleveland, Lincoln, McClain, Oklahoma, and Pottawatomie counties in Oklahoma were identified as Presidentially Declared Major Disaster Areas. The Federal Housing Administration has issued reminders mortgagees in order to provide assistance to borrowers with FHA-Insured single family mortgages. Mortgagees should refer to the following Mortgagee Letters:
Mortgagee Letter 2013-11 issued April 13, 2013:
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. http://portal.hud.gov/hudportal/documents/huddoc?id=13-11ml.pdf
Mortgagee Letter 2012-28 issued December 11, 2012:
Restatement and Update of Flood Zone Requirements for Federal Housing Administration (FHA) Insured Mortgages.
http://portal.hud.gov/hudportal/documents/huddoc?id=12-28ml.pdf
Mortgagee Letter 2012-23 issued November 16, 2012:
Guidance for FHA-Approved Mortgagees Originating and Servicing Mortgages in Presidentially-Declared Major Disaster Areas. http://portal.hud.gov/hudportal/documents/huddoc?id=12-23ml.pdf
Resources for homeowners:
HUD/FHA Relief Available in Presidentially Declared Disaster Areas
If your property has been affected by a natural disaster (hurricane, flood, tornado, wildfire, etc.), resources are available to assist in your recovery. If an area has been designated as a Presidentially-declared disaster area, federal disaster recovery programs will become available to the residents within those areas. Information regarding the most up to date programs, eligibility criteria, and declared disasters will be available on the national disaster recovery site, located at:http://www.disasterassistance.gov/
The following programs are available through an FHA approved lender without regard to the current financing type:
Section 203(h), Mortgage for Disaster Victims Program – this program allows FHA approved lenders to provide financing to individuals and families (homeowners or renters) whose residences were destroyed or damaged to such an extent that reconstruction or repair is necessary. This program allows 100% financing for the purchase or reconstruction of a home, however, closing costs and prepaid expenses not paid by the seller must be paid by the borrower in cash through premium financing.
Section 203(k) Rehabilitation Program – this program enables those who have lost their homes to finance the purchase or refinance of a house along with its repair through a single mortgage. Damaged residences are eligible for Section 203(k) mortgage insurance regardless of the age of the property when the property is located in a presidentially declared disaster area. The residences need only to have been completed and ready for occupancy for eligibility under Section 203(k).
Important note: Lenders may use Section 203(k) in combination with Section 203(h) for disaster rehabilitation.
It is important for homeowners to contact their hazard insurance provider and mortgage lender as soon possible to notify them of the condition of affected property and to obtain initial assistance in determining in recovery effort.
- If a borrower’s current mortgage is insured by FHA they will receive an immediate 90-day moratorium on foreclosure and forbearance.
- If homeowners are not satisfied after discussing possible relief actions with their FHA mortgage lender, they should contact HUD’s National Servicing Center at 1-877-622-8525.
- For more information on disaster relief for FHA borrowers: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/nsc/qaho0121
Additional Resources
Information regarding HUD and FHA disaster relief programs: HUD disaster resources site at: http://www.hud.gov/info/disasterresources_dev.cfm
Information regarding the Federal Housing Administration’s primary disaster mortgage insurance program: http://portal.hud.gov/hudportal/HUD?src=/program_offices/housing/sfh/ins/203h-dft
Affected homeowners can locate a local housing counseling agency by calling (800) 569-4287 or visiting: http://portal.hud.gov/hudportal/HUD?src=/i_want_to/talk_to_a_housing_counselor
FHA questions should be directed to the FHA Resource Center via email at ansers@hud.gov
or via telephone during the hours of 8:00AM-8:00PM Eastern Time 1-800-CALLFHA (1-800-225-5342).
About the Author:
Michelle is Vice President and Chief Information Officer at Bankers Advisory, Inc. She can be reached at michelle@bankersadvisory.com
Michelle oversees the mortgage information security, vendor management, and pre-funding services, and manages the QC processing department. She received her associate's degree at the New England College of Finance and is a BA candidate at Bentley University.
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