Freddie Mac Expands Hurricane Sandy Relief, Suspends All Evictions and Foreclosures
Freddie Mac has declared a mandatory
suspension of evictions and foreclosures on homes secured by mortgages it owns
or guarantees which were affected by Hurricane Sandy. The company announced this and other steps today
after consulting with its conservator the Federal Housing Finance Agency
(FHFA.) Hurricane Sandy and its related
storm surge did enormous damage on October 28 and 29 along the east coast from
North Carolina to Connecticut and especially in seacoast New Jersey and several
boroughs of New York City.
On October 30 Freddie Mac announced it
was making its full range of disaster relief services available, allowing servicers
to suspend foreclosure and eviction proceedings for up to 12 months on a
case-by-case basis, waiving penalties or late fees, and not reporting
delinquencies or forbearance to credit bureaus. Today's announcement expands
the scope of these services to authorize servicers to:
Automatically suspend for 90-days
evictions and foreclosure sales for borrowers with homes secured by Freddie Mac
owned-or guaranteed mortgages and located in eligible disaster areas with the
option to extend suspensions for up to 12 months on a case-by-case basis. Borrowers are still encouraged to contact
their servicers to discuss their situation.
Authorize servicers to verbally
grant 90-day forbearances to all borrowers in eligible disaster areas,
including borrowers with mortgages modified under the Home Affordable
Modification Program (HAMP) or who are currently in a HAMP or Standard
Modification Trial Period Plan.
Expedite the distribution of
insurance proceeds on storm damage claims to speed up repairs of storm-damaged
Additionally, Freddie Mac will
maintain pricing that was in place at the time of the storm for mortgages that
are secured by homes in eligible disaster areas and delivered through Freddie
Mac's bulk guarantor channel.
Tracy Mooney, Senior Vice President
of Single-Family Servicing and Real Estate Owned at Freddie Mac said, "Given
early assessments of Hurricane Sandy's devastating impact, we are preparing
steps that will authorize automatic and immediate action by the nation's
mortgage servicers to help more borrowers with mortgages owned or guaranteed by
Freddie Mac. These steps are intended to provide borrowers with peace of
mind and help lay the groundwork for a faster recovery in the neighborhoods and
communities affected by the storm."
Homeowners in affected areas should contact
their mortgage servicer or call Freddie Mac at 800-FREDDIE.