Freddie Mac Extends Disaster Assistance to Colorado Flood Victims

As it did following the devastation of HurricanernSandy, Freddie Mac has made the full menu of its mortgage relief policies availablernto borrowers in the Colorado area.  Thernstate has been hit by days of flooding that, according to the latest news reports,rnare likely to have destroyed 11,000 homes.</p

Freddie Mac’s disaster reliefrnpolicies enable servicers to help borrowers with homes in presidentiallyrndeclared Major Disaster Areas where federal Individual Assistance programs arernbeing made available.  Under therndirective issued by Freddie Mac today servicers can place borrowers withrnproperties affected by the flooding on forbearance and suspend foreclosures forrnup to 12 months.  This forbearance needrnnot be reported to the nation’s credit bureaus.  Servicers can waive late fees assessed againstrnborrowers whose homes were damaged by the disaster.  Evictions and lock-outs can also be suspendedrnfor up to 90 days.</p

When forbearance ends, a new FreddiernMac option allows servicers to add missed mortgage payments to the outstandingrnloan balance and extend the term of the loan in order to keep the monthlyrnmortgage payment essentially unchanged.  </p

Freddie Mac is also reminding servicersrnto consider Freddie Mac’s standard relief policies, including forbearance orrnmortgage modifications, for borrowers who work in eligible disaster areas butrnlive in unaffected areas. </p

Tracy Mooney, Senior Vice Presidentrnof Single-Family Servicing and REO at Freddie Mac said, “Freddie Mac isrnurgently reminding the nation’s mortgage servicers about the full range ofrnmortgage relief options they can provide to affected borrowers with mortgagesrnwe own or guarantee, including forbearance on mortgage payments for up to onernyear. We strongly encourage borrowers to contact their servicers, who are fullyrnauthorized to work with them on a case-by-case basis.”</p

Fannie Mae is expected to issue arnsimilar emergency declaration.

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