Mortgage

Freddie Mac officially offers forbearance to Louisiana flood victims

Mortgage servicers authorized to extend relief

Freddie Mac released today their disaster relief policies available to flood victims in the Louisiana flooding.

Freddie Mac's disaster relief policies are available to borrowers with homes in presidentially declared Major Disaster Areas where federal Individual Assistance programs are being made available to affected individuals and households.

This announcement came shortly after Fannie Mae granted mortgage servicers additional leeway to help some of Louisiana’s flood victims.

"Freddie Mac strongly encourages borrowers whose homes or businesses were harmed by the floods to immediately call their mortgage servicer to discuss mortgage relief,” Yvette Gilmore, Freddie Mac vice president of single-family servicer performance management.

“If their mortgage is owned or guaranteed by Freddie Mac, they may qualify for our full range of options, which includes forbearance on mortgage payments for up to one year," Gilmore said.

Some of the options servicers can provide homeowners include:

  • Suspending foreclosures by providing forbearance, the postponement of legal action in regards to the payment of a debt, for up to 12 months
  • Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes
  • Not reporting forbearance or delinquencies caused by the disaster to the nation's credit bureaus.

For a complete description of Freddie Mac’s disaster relief policies, click here.

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