21 FannieMae i tec Mareh 31, 2010 ‘The Honorable Mark R. Warner 459A Russell Senate Office Bldg shington, DC 20510-4606 ‘Thank you for your recent letter regarding the families in Virginia that have been experiencing health and financial hardships associated with defective imported drywall. Since receipt of your letter, Fannie Mae staff has been in regular contact with your staff t6 continue the efforts we began last fall to address this issue and work towards a solution. In the meantime. I appreciate this opportunity to outline the steps that we are Liking to address your cone ‘as, First. our team has reviewed the list of properties you have identified as affected by the defective drywall to det necessary for us to provide relief to the borrowers, loans, as that is ermine if Fannie Mae owns or guarantees the related mortgase Second, we are directing our mortgage servicers to communicate with each of the identified Fannie Mae borrowers to verify the presence of defective drywall in their homes, and if so, offer qualified borrowers six months of forbearance on their mortgage loan payments to give them time to rectify their situation. We will instruct servivers to suspend derogatory reporting to the credit agencies for the duration of the forbearance, When talking with these borrowers, the servicers will have the opportunity to discuss the situation in greater detail and address any questions or concems. Finally, since the defective drywall issue potentially affects homeowners and renters across the nation, [have asked my team to develop a nationwide approach to addressing this issue. including consideration of the credit reporting issue you raised, We will keep you and your staff informed as we continue to work on this important issue, Sincere! Disha pHitbe Michael J. Williams!