Freddie Mac is invoking the same types of measures to
protect homeowners in the face of the COVID-19 pandemic as it has previously taken
in other natural disasters such as hurricanes. The company announced Thursday
morning that it is suspending all foreclosure sales of properties securing its
mortgages and evictions of borrowers living in homes owned by the company. That
suspension is effective immediately and will extend to May 17, 2020. Freddie
Mac said that period could be extended if the Federal Housing Finance Agency
directs it.
It is also offering a package of relief options for
borrowers having trouble making their mortgage payments because of the financial
disruptions caused by the virus. Among the provisions:
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Up to 12 months of forbearance.
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Waiving of penalties and/or late fees.
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Suspending the reporting to credit bureaus
of information about delinquencies, forbearance, or trial and repayment plans.
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Authorizing servicers to extend additional
loss mitigation options including loan modifications.
These measures are effective
immediately and apply to borrowers who are unable to make their mortgage
payments due to a decline in income resulting from the impact of COVID-19,
regardless of whether they have contracted the virus. Borrowers are eligible
for forbearance regardless of whether their property is owner occupied, a
second home or an investment property.
"We are doing all we can to help
those adversely impacted by the coronavirus, including by immediately
suspending foreclosure sales and evictions during this challenging time," said
Donna Corley, executive vice president and head of Freddie Mac's Single-Family
business. "These eviction and foreclosure stoppages are just one part of the
comprehensive assistance we're providing borrowers to help protect our
communities. We are also expanding relief available through our well-known forbearance
programs, allowing us to reach the majority of affected borrowers as expeditiously
as possible."
Borrowers who may be experiencing
financial challenges due to COVID-19 are strongly encouraged to contact their
mortgage servicer - the company to which they send their monthly mortgage
payments. Freddie Mac said it is instructing its servicers to work with
borrower to make sure they are evaluated for appropriate assistance.