Freddie Reminds Servicers of Discretion

Freddie Mac is reminding its servicers that they have the discretion to provide up to a year's worth of mortgage relief to borrowers with homes damaged by the tornados that ripped through Greensburg, Kan., and other towns that President Bush has designated major disaster areas.Disaster relief policies are available in major disaster areas designated by the Federal Emergency Management Agency where individual FEMA assistance is available. Freddie Mac gives mortgage servicers the discretion to reduce or suspend mortgage payments for up to 12 months for borrowers with Freddie Mac-owned mortgages in the FEMA-designated disaster areas. Each case must be individually assessed to determine which option will best fit the homeowner's circumstances. "Freddie Mac and the nation's mortgage servicers are working together to bring some measure of financial relief to homeowners who were affected by these storms," said Ingrid Beckles, vice president of servicing and asset management at Freddie Mac. "Borrowers in these major disaster areas should contact their mortgage servicers to discuss forbearance or other workout options Freddie Mac supports when disaster strikes." Freddie can be found online at http://www.freddiemac.com.