Freddie Joins Fannie in Providing Relief to Gulf Home Owners

Freddie Mac is telling its servicers they can grant forbearance to mortgagors affected economically by the oil spill in the Gulf Coast region. Under Freddie's policy, servicers have the discretion to suspend a borrower's payments for three months if necessary-or reduce them for up to six months. Servicers may recommend forbearance for up to 12 months based on the borrower's circumstances, the GSE said. Under Freddie's requirements, servicers must not accrue or collect late fees from the borrower during short-term forbearance or any subsequent repayment plan period if the borrower is paying according to the agreement. Freddie senior vice president of default asset management Ingrid Beckles said, "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."