U.S. Real Estate Recovery Challenged by Hurricane Sandy

Excellent, quick overview by Kathleen M. Howley, John Gittelsohn, and Heather Perlberg of Bloomberg Businessweek:

U.S. Real Estate Recovery Challenged by Hurricane Sandy‘Adequate Insurance’

“Given the magnitude of the storm there will be some impact on performance but more so on smaller properties, to the extent there is structural damage to the property and they require significant capital expenditures,” said Deutsche Bank AG debt analyst Harris Trifon. It won’t lead to any significant increase in delinquencies, he said, because most properties should have adequate insurance.
Freddie Authorizes

Freddie Mac said today in a statement that it has authorized servicers to suspend foreclosure proceedings for up to 12 months on mortgages it owns or guarantees in states affected by the storm. Also, the McLean, Virginia-based company said it will permit some on-time borrowers to defer mortgage payments for up to a year, will waive the assessment of late fees against borrowers with storm-damaged homes and will not report delinquencies caused by the disaster to credit bureaus.

Washington-based Fannie Mae issued a statement today urging its servicers to grant borrowers affected by the disaster a 90- day period of deferred or reduced mortgage payments under its existing disaster-relief guidelines.
“The magnitude of the damage is not yet known, but none of this can be good for the prospect of getting the foreclosure crisis behind us,” said David Dunn, an attorney with Hogan Lovells in New York.

Read the whole article: U.S. Real Estate Recovery Challenged by Hurricane Sandy - Businessweek.