The GSE has reminded servicers of its disaster-relief policies, including suspending foreclosures for up to a year
Freddie Mac has issued an announcement to mortgage servicers that its disaster-relief policies are in effect for Hurricane Dorian.
The GSE’s disaster-relief options are available to borrowers whose homes or places of employment are located in presidentially declared major disaster areas. In areas where the Federal Emergency Management Agency has not yet made individual assistance available, mortgage servicers can make use of Freddie’s short-term forbearance programs to provide mortgage relief to borrowers who have been affected by Dorian.
“As Hurricane Dorian approaches, we stand ready to ensure mortgage relief is made available to affected borrowers in eligible disaster areas,” said Yvette Gilmore, Freddie Mac’s vice president of single-family servicer performance management. “Once safely out of harm’s way, we strongly encourage homeowners whose homes or places of employment are impacted by the hurricane damage to call their mortgage servicer – the company borrowers send their monthly mortgage payments to – so they can learn about available relief options.”
The GSE’s mortgage relief options for affected borrowers include:
- Suspending foreclosures by providing forbearance for up to 12 months
- Waiving assessments of penalties or late fees against borrowers with homes damaged by the disaster
- Not reporting forbearance or delinquencies caused by the disaster to credit-reporting agencies
Freddie Mac also reminded single-family servicers to consider borrowers who are impacted by the storm – but live or work outside of an eligible disaster area – for its standard relief policies.
Hurricane Dorian has pummeled the Bahamas for days. As of Tuesday, it was slowly moving north toward the southeastern United States.