Freddie Mac announces relief for Gulf Coast borrowers affected by oil spill
- June 18, 2010
McLean-based Freddie Mac announced yesterday that servicers may grant relief to Gulf Coast borrowers unable to pay their loans because of the oil spill’s impact on their incomes.
Freddie Mac’s forbearance policies allow servicers 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 12 months, based on the borrower’s individual circumstances.
Under Freddie Mac’s requirements, servicers must not collect late charges during a short-term forbearance if the borrower is paying according to the agreement.