Skip to main content

Freddie Mac Addresses Concerns Over Government Shutdown

NationalMortgageProfessional.com
Oct 08, 2013

In an October 7 Single-Family Seller/Servicer Guide Bulletin, Freddie Mac issued temporary guidance to the nation's lenders to minimize disruptions to the mortgage market during the temporary federal shutdown. The new bulletin allows lenders to deliver mortgages to Freddie Mac when the borrower is not receiving a paycheck as a result of the temporary shutdown, provided the loan meets Freddie Mac's other requirements and the lender expects the borrower to return to work when the government reopens. Freddie Mac's mortgage relief policies are available to public and private sector employees affected by the temporary federal government shutdown. This means servicers can provide eligible borrowers forbearance that must not be reported to credit bureaus. Forbearance can range from up to three to 12 months depending upon the borrower's circumstances. Servicers can accept a borrower's most recent signed federal tax return while the IRS is unable to process an IRS Transcript Request Form (4506-T), or similar tax transcript request, when tax information is needed to evaluate a borrower for Freddie Mac's Home Affordable Modification program, standard modifications or other loan workout option. Freddie Mac will continue to monitor the situation and may provide additional guidance or requirements if the shutdown extends for a prolonged period of time. "We're issuing this guidance to help ensure the continued smooth operation of the mortgage market during the temporary shutdown of the federal government. Today's bulletin is intended to give lenders the certainty to continue approving and delivering new mortgages that meet Freddie Mac guidelines to eligible borrowers, such as federal employees and contractors," said Dave Lowman, executive vice president, Single-Family Business at Freddie Mac. "During the temporary shutdown. We are also reminding servicers of our forbearance options to assist qualified homeowners with Freddie Mac mortgages to minimize the shutdown's impact on our nation's families and communities."
Published
Oct 08, 2013
Mortgage Forbearance Changes Create Challenges for Servicers

65% Of All Plans Would Expire By The End of 2021

Regulation and Compliance
Aug 02, 2021
CFPB Reports Trends In Financial Assistance

The latest developments from this study reveal that most consumers have exited the payment assistance they received at the start of the pandemic.

Analysis and Data
Jul 14, 2021
CFPB Orders GreenSky To Refund $9M In Unauthorized Loans

The consent order requires GreenSky to refund or cancel up to $9 million in loans for the customers harmed by this illegal conduct.

Regulation and Compliance
Jul 13, 2021
CFPB Warns Landlords And Consumer Reporting Agencies To Report Accurate Rental Information

Inaccurate rental or eviction information can unfairly block families and individuals from safe, affordable housing.

Regulation and Compliance
Jul 01, 2021
FHFA Mandates Quarterly Fair Lending Reports

FHFA issued orders for all enterprises to submit quarterly Fair Lending Reports with data and information to improve the FHFA’s capabilities. 

Regulation and Compliance
Jul 01, 2021
FHFA Follows CFPB To Protect Borrowers Once COVID-19 Foreclosure And Eviction Moratoriums End

The Federal Housing Finance Agency made it clear that Fannie Mae and Freddie Mac servicers are not permitted to make first notice or filing for foreclosure that would be prohibited by the CFPB protections for borrowers affected by COVID-19.

Regulation and Compliance
Jun 30, 2021