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Question: What resources are available to assist a mortgage lender with natural disaster preparation and response?

Answer: 

With the increase in natural disasters, it is imperative that lenders adequately train applicable staff on where and how to locate disaster guidance and resources so they do not run afoul of investor, agency or other applicable guidelines.  Various agencies maintain the following disaster preparation and response webpages: 

• Fannie Mae Disaster Response – includes Disaster Relief Single Family Selling/Servicing Frequently Asked Questions (FAQs)
• Freddie Mac Disaster Relief – includes training and Seller: Disaster Relief Policies FAQ and Servicing: Disaster Relief Policies FAQ
• HUD Disaster Resources 
• VA Guidance on Natural Disasters 
• FHFA’s Mortgage Loan and Natural Disaster Dashboard – online risk analysis tool intended to give property owners, financial institutions, and other stakeholders better insight into which areas of the country are most likely to incur greater damages from hurricanes, flooding, wildfires, and other types of natural hazards.  
• Federal Emergency Management Agency (FEMA)’s Disaster Information page –  provides a “search by location” tool to identify active and past disaster declarations. 

Lenders should develop written policies and procedures addressing disaster response.  Such policies should outline requirements when a natural disaster is anticipated as well as for confirming whether a subject property is located in a federal declared disaster area, if and when property inspections are necessary (or a best practice), and other applicable requirements.  

Lenders should also consider whether they are properly prepared for situations in which their employees or office locations may be directly impacted by a natural disaster.  Lenders must maintain and periodically test their disaster recovery and business continuity plans in this regard.