USDA Rural Development (RD) remains committed to assisting borrowers impacted by disasters and understands that some may experience unique and unparalleled circumstances in their hardships. Due to the magnitude and devastation of Hurricane Helene, the USDA reminds servicers of guidance for servicing accounts when a county, parish or municipality has been identified as a Presidentially Declared Disaster (PDD) area.

This announcement outlines relief measures that holders and/or loan servicers of USDA RD mortgages should implement to assist USDA RD borrowers affected by PDDs. Homeowners impacted may be eligible for temporary relief. Servicers can immediately implement the following for borrowers in the designated areas.

1. FORECLOSURE SUSPENSION: The servicer must suspend all foreclosure actions for 90 days for borrowers whose properties or place of employment have been directly impacted in the PDD. This applies to both the initiation of new foreclosures, as well as foreclosures already in process. This suspension shall expire no earlier than 90 days after the date of the PDD unless extended by the USDA.

2. FORBEARANCE: USDA encourages loan servicers to evaluate forbearance options for borrowers in distress in a PDD. Borrowers impacted may be placed on a forbearance of up to 12 months to provide payment relief from their mortgage obligation during this time. Precise and consistent communication with borrowers should help determine whether their difficulties are directly or indirectly related to the PDD, or whether the issue stems from other sources which must be addressed. Guidance relating to this topic can be found in ‘Assistance in Natural Disasters’ located in Chapter 18 of the technical Handbook.

3. REPORTING: Servicers are reminded that they must report the appropriate default status codes associated with the actions taking place. These instructions apply only to USDA Electronic Status Reporting requirements and do not apply to credit bureau reporting. Servicers should confer with their legal team for requirements pertaining to credit bureau reporting.

4. DOCUMENTATION: Servicers should fully document their decisions when loss mitigation servicing actions are implemented. The documentation should substantiate their loss mitigation decision and should follow the Agency’s outline in ‘Assistance in Natural Disasters’, located in Chapter 18 of the technical Handbook.

Questions regarding program policy and this announcement may be directed to the SFHGLP Servicing Division at sfhglpServicing@usda.gov or (833) 314-0168 option 4.

Thank you for your support of the Single-Family Housing Guaranteed Loan Program.