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» VISIT US ONLINE @ DSNEWS.COM 57 immediate evacuation. President Donald Trump approved the request, and Florida braced for impact, as most of its residents fled for, hopefully, dryer land. IMMEDIATE RESPONSES Virtually every facet of the government, whether under the conservatorship of the Federal Housing Finance Administration, or not, has issued responses to the catastrophes. e Office of the Comptroller of the Currency issued guidelines for banking and regulatory institutions in the event they should close as a result of the storms, and highlighted guidelines to follow in order to remain compliant, as well as to help serve the communities they represent, which include the Community Reinvestment Act, regulatory reporting and publishing requirements, and processes for setting up temporary banking facilities. On the Hill, in the wake of Hurricane Harvey, and in anticipation of Irma's inevitable landfall, the House of Representatives authorized $8 billion in relief for those affected by a nearly unanimous vote of 419-3. In addition, both of the government sponsored enterprises, Fannie Mae and Freddie Mac, issued a 90-day moratorium on foreclosure proceedings and eviction activities, as well as potential forbearance for borrowers unable to pay. e GSE's have since then extended that date through December 31, 2017. Freddie Mac also issued a revised bulletin for servicing guidelines, which included reimbursement through September 2018 on the cost of property inspections in eligible disaster zones from the 2017 hurricanes. Servicers will be allowed to grant immediate forbearance to borrowers effected by the storms. e GSE does note that these reimbursements and restrictions only apply to eligible disaster zones as a result of Harvey, Irma, and now, Maria. "It is important for those in the path of the storm[s] to focus on their safety as they deal with the damage caused ..." said Carlos Perez, Fannie Mae SVP and Chief Credit Officer. Ginnie Mae, too, has joined the fray by providing expanded loan buyout authority, which include late fee waivers, loan modifications, and foreclosure moratoriums. Loan buyouts include properties that are damaged as a result of the storms or borrowers that are experiencing economic hardship; however, unlike Fannie or Freddie's guidelines, issuers must request and receive written approval before deferments will be available. Ginnie's loan buyout plan is set to expire on March 31, 2018. e Department of Housing and Urban Development (HUD) has also stepped up to the plate since Harvey first struck, outlining their short, intermediate, and long-term goals in providing relief. In the short term, HUD provided immediate assistance to those in FEMA disaster areas, allowing for the payment of motels and hotels to those displace, in addition to providing Federal Housing Administration insurance, which could cover up to 100 percent financing on the cost for borrowers to rebuild or rebuy. HUD's coverage extends through Texas, Louisiana, Georgia, Florida, and Puerto Rico. INDUSTRY UNITED It wasn't only the government that took up the helm in relief efforts. Many prominent members of the mortgage and housing industry contributed to ensure a swift recovery. Assurant, a risk management company, in addition to prioritizing claims in hurricane-effected areas, donated $100,000 to the American Red Cross. Proctor Financial held a donation drive in affected areas, and matched all proceeds. Mr. Cooper waived or refunded late fees and held off on negative reporting to credit bureaus. e company's employees have also personally donated $110,000 to the Red Cross, which Mr. Cooper will match in full. But this is not the first—nor will it be the last—time that the industry will have to deal with the ramifications of such events. When asked about the scope of the devastation as the flood waters recede, Denis Brosnan, President and CEO of DIMONT said, "It's almost unimaginable. Our company has a long history with these types of storms, and many of our employees were directly involved in the mortgage industry's response to Katrina. e stories they tell speak to the challenges of assessing damage, communicating with the various folks involved–government officials, insurance companies, etc.–and then the frustration of locating and dealing with contractors to help in the cleanup and repair efforts. is is going to be very challenging for the folks down there, and it will take a long time." SecureView also made a substantial donation to the Red Cross of $100,000. It's founder, Robert Klein, remembers the sort of destruction hurricanes have inflicted on the housing market in the past, including Hurricane Katrina and Hurricane Sandy. "In 2005, I witnessed firsthand the level of devastation brought on by Hurricane Katrina, impacting families and entire communities," he said. "e epic flooding and devastation that Houston is undergoing requires a swift and immediate response from the industry to help COVER STORY INDUSTRY INSIGHT INDUSTRY INSIGHT INDUSTRY INSIGHT INDUSTRY INSIGHT TOTALING THE DAMAGE » Warren Buffet, Chairman and CEO of Berkshire Hathaway, estimates 50,000 total loss claims in the wake of Hurricane Harvey, not including Irma or Maria. » 80 percent of homes in the FEMA designated disaster zones in Houston are without flood insurance. » Places Hurricanes Harvey, Irma, and Maria affected include Texas, Florida, Louisiana, Georgia, the Carolinas, Puerto Rico and the U.S. Virgin Islands. » Hurricane Harvey Compared to Hurricane Katrina* » Total mortgaged properties in Hurricane Harvey-related FEMA disaster areas: 1,180,000 » Total mortgaged properties in Hurricane Katrina-related FEMA disaster areas: 456,000 » Total unpaid mortgage balances in Hurricane Harvey-related FEMA disaster areas: $179 billion » Total unpaid mortgage balances in Hurricane Katrina-related FEMA disaster areas: $46 billion » Post-Katrina delinquency (30+ days) increase in FEMA-designated disaster areas: from 8.7 to 34 percent » Post-Katrina serious delinquency (90+ days) increase in FEMA- designated disaster areas: from 2.8 to 16.3 percent. » Post-Harvey potential new delinquencies (30+ days): 300,000 » Post-Harvey potential new serious delinquencies (90+ days): 160,000 * Source: Black Knight, September 8 report titled "Black Knight: Hurricane Harvey Could Result in 300,000 New Mortgage Delinquencies, with 160,000 Borrowers Becoming Seriously Past Due" 57

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