Freddie Mac to Grant 12-Month Forbearance for Unemployed Borrowers – NMP Skip to main content

Freddie Mac to Grant 12-Month Forbearance for Unemployed Borrowers

Jan 06, 2012

Freddie Mac has announced that it is giving mortgage servicers expanded authority to provide six months of forbearance to unemployed borrowers without Freddie Mac's prior approval and up to an additional six months with prior approval. This means unemployed borrowers may be eligible for up to 12 months of forbearance. Freddie Mac's forbearance options are being expanded at the direction of its conservator, the Federal Housing Finance Agency (FHFA), and will take effect on Feb. 1, 2012. According to the latest statistics, nearly 10 percent of delinquencies on Freddie Mac mortgages were tied to unemployment.  "These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies," said Tracy Mooney, SVP of single-family servicing and REO for Freddie Mac. "We believe this will put more families back on track to successful long-term homeownership." Delinquent borrowers in an existing short-term forbearance plan can be evaluated for an extended forbearance under Freddie Mac's new policy. Previously, Freddie Mac allowed servicers to grant up to three months of forbearance with no payment and without prior approval, or six months at a reduced payment with prior approval. Longer forbearance required prior approval and was generally restricted to events such as natural disasters, permanent disability or long-term medical emergencies. 
About the author
Published
Jan 06, 2012
Closing Costs: What HUD’s Proposed Rule Will Really Do To The Market

HUD’s proposed rollback of housing protections could deepen barriers for underserved borrowers, shrink the pool of prospective homebuyers, and ultimately cost loan originators business

Aug 27, 2026
MISMO Gives Lenders A New Test For Mortgage AI Vendors

Two certifications move the industry’s FRAME initiative from governance guidance toward product-level validation and implementation

Aug 27, 2026
One Owner, Two GSEs: Would Fannie And Freddie Still Compete?

Oksenholt Capital says shared infrastructure could lower costs without weakening competition, but mortgage bankers have warned that common ownership could reduce lender choice, innovation, and market resilience

Aug 27, 2026
MaxClass: Education Meets Lead Generation

CEO Kelly Hendricks details how MaxClass and HomeQB are opening a new referral channel for originators

Fannie Mae Returns To Distressed-Loan Market With $214 Million Sale

The agency’s first nonperforming-loan offering in 13 months transfers 969 deeply delinquent mortgages to private buyers, including a small pool concentrated in Dallas-Fort Worth

Aug 20, 2026
Brief Refinance Shift Tests Mortgage Lenders’ Compliance Controls

Critical defect rate jumps 23.9% as math-based compliance findings expose the potential for one systemic error to affect loans across a lender’s book