By AFP | Jun 16, 2010
Fannie Mae, Citigroup offer mortgage relief to Gulf victims
Fannie Mae, the government-rescued mortgage giant, and US bank Citigroup offered mortgage relief on Wednesday to homeowners in the Gulf of Mexico region ravaged by the massive BP oil spill.
Fannie Mae said mortgage servicers may immediately suspend or reduce mortgage payments for up to 90 days for borrowers whose properties or income are "negatively impacted" by the Gulf oil spill.
"We want to give homeowners every opportunity to weather this unprecedented disaster, including relief from their mortgage payment if that will help them get back on their feet and stay in their homes," said Michael Williams, president and chief executive of the mortgage firm.
Citigroup CEO Vikram Pandit announced a foreclosure suspension program for CitiMortgage-owned mortgages in coastal areas hard-hit by the oil spill in the Gulf of Mexico.During the three-month suspension, effective Thursday through September 17, borrowers with first mortgage loans owned by CitiMortgage and who meet certain other criteria will not be subject to foreclosure sales or foreclosure notifications, the bank said.
The mortgage relief came as residents of four southern US states -- Alabama, Louisiana, Mississippi and Florida -- from the enormous oil slick threatening their coastlines and crippling the fishing and tourist industries, key economic drivers in the region.
US experts estimate between 35,000 and 60,000 barrels of oil a day are still spewing into the Gulf after an April 20 explosion sank a deepwater drilling rig operated by BP, causing the worst environmental disaster in US history.
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