The state of Michigan announced on Tuesday that major home loan lenders have agreed to delay monthly mortgage payments for homeowners impacted by recent flooding in southeast Michigan.
The state said the Michigan Department of Insurance and Financial Services (DIFS) and financial leaders across Michigan have agreed to “help Michiganders affected by the recent flooding in southeastern Michigan to stay in their homes and to afford necessary repairs.”
Michigan lenders have programs available to assist impacted homeowners, and homeowners whose mortgages are owned by Fannie Mae or Freddie Mac – an estimated 70 percent of the market – may be eligible to delay making monthly mortgage payments, in order to focus on immediate financial needs caused by flooding, the state said.
Residents of affected areas who are not able to make mortgage payments are asked to contact their mortgage lender right away to ask about repayment plan assistance, so they can defer their payments and focus on immediate flood recovery. Borrowers who are able to make their payments should continue to do so as normal, the state says.
For more information about relief for homeowners with Fannie Mae or Freddie Mac-owned loans, including tools to look up whether a loan is owned by these companies, homeowners should visit the Federal Housing Finance Agency website.
“We’re using every tool in our toolbelt to help Wayne and Washtenaw County residents recover from recent flooding, and we are thankful that our Michigan financial services industry partners are taking this step with us,” Gov. Whitmer said. “Michigan’s banks, credit unions and mortgage lenders will work with customers who may need deferred payments and loan modifications for their mortgages or loans to pay for repairs to their homes. Brighter days are ahead and there is help available for homeowners who suffered flood damage.”
In addition to help from their lenders, relief for homeowners may be available through state or federal programs. Federal disaster assistance is available to people in Washtenaw and Wayne Counties to help with temporary housing, home repairs and other assistance to help individuals and business owners recover from the effects of the disaster.
Apply for assistance by registering online at DisasterAssistance.gov or by calling 1-800-621-3362 or 1-800-462-7585 TTY. The Michigan Department of Health and Human Services (MDHHS) is also offering emergency relief assistance to low-income residents affected by recent flooding and Michiganders can apply at Michigan.gov/MIBridges.
The DIFS can assist consumers and businesses with questions or disputes that cannot be directly resolved with their financial institutions. Contact the DIFS Monday through Friday 8 a.m. to 5 p.m. at 877-999-6442 or file a complaint at Michigan.gov/DIFScomplaints.
On the federal level, the Federal Deposit Insurance Corporation (FDIC) has announced steps to provide regulatory relief to financial institutions and facilitate recovery in the Washtenaw and Wayne Counties. The FDIC is encouraging banks to work constructively with borrowers experiencing difficulties beyond their control because of damage caused by the severe weather.
State organizations and their member companies have also agreed to assist their customers facing damage from recent floods and are encouraging financial institutions to support their customers, as appropriate. This includes Community Bankers of Michigan, Michigan Bankers Association, Michigan Credit Union League and the Michigan Mortgage Lenders Association.