On April 2, 2025 and continuing, severe storms, straight-line winds, tornados and flooding affected the State of Tennessee causing widespread damage. On April 3, 2025, President Trump issued an Emergency Declaration authorizing federal disaster assistance for the state of Tennessee to supplement response efforts. All 95 Counties in Tennessee are Designated for Assistance. Recommendation Our recommendation is to immediately place a 90-day hold on foreclosures in the state of Tennessee for loans guaranteed by FHA, VA, or a Government-Sponsored Enterprise (FNMA, FHLMC, GNMA). Other loan types may also be placed on hold at the discretion of the servicer. We will monitor for additional notifications from FEMA, including major disaster declarations in the upcoming days and provide updates as soon as those are available. The U.S. Department of Housing and Urban Development (HUD) provides an automatic 90-day foreclosure moratorium beginning on the date of any Presidentially-Declared Major Disaster Area declaration. If you have any questions about this declaration or any other related matters, please feel free to reach out to Sarah Murphy McDaniel, Managing Attorney (smcdaniel@mtglaw.com), Adrian Jacobs, Partner (ajacobs@mtglaw.com) or MTG’s Compliance Team (compliance@mtglaw.com). To discuss partnership opportunities please contact Rosalie Escobedo, J.D. (rescobedo@mtglaw.com). This transmission is for informational purposes only and may not reflect the most current legal developments or address your specific legal needs. While the information provided is about legal issues, it should not be construed as legal advice on any subject matter and is not to be relied upon as such. We disclaim all liability for actions taken, or not taken, based on any information provided in this transmission. For a detailed review or legal analysis as it pertains to a specific matter, please reach out to Sarah McDaniel, Adrian Jacobs, or to compliance@mtglaw.com.
