Freddie Mac has announced that servicers may grant relief to Gulf Coast borrowers unable to pay their loans because of the current oil spill's impact on their incomes. Freddie Mac's forbearance policies give servicers the discretion to suspend a borrower's mortgage payments for up to three months or reduce payments for up to six months. Servicers may recommend forbearance for up to 12 months, based on the borrower's individual circumstances.
"Freddie Mac and the nation's mortgage servicers will work together to advance available mortgage relief to homeowners affected by the Deepwater Horizon oil spill," said Freddie Mac Senior Vice President of Default Asset Management Ingrid Beckles. "We are instructing our servicers to work with borrowers with Freddie Mac-owned mortgages to extend forbearance of mortgage payments where appropriate to help them stay in their homes as they navigate through this financial hardship."
Under Freddie Mac's requirements servicers must not accrue or collect late charges from the borrower during a short-term forbearance or any subsequent repayment plan period if the borrower is paying according to the forbearance agreement.
For more information, visit www.freddiemac.com.