/PRNewswire/ -- Freddie Mac today 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 is one of the nation's largest investors in residential mortgages.
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 twelve 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
. "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 on mortgage payment relief, homeowners should contact their mortgage servicer – the company to which they send their monthly mortgage payment. For more information on Freddie Mac, see
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
SOURCE Freddie Mac