Freddie Mac Confirms Immediate Mortgage Relief Options for Homeowners Affected by Hurricane Ida

Rhea-AI Summary

Freddie Mac (OTCQB: FMCC) announced disaster relief options for homeowners affected by Hurricane Ida in the Gulf Coast. The company urges those impacted to contact their mortgage servicers for immediate support. Freddie Mac offers short-term forbearance for up to 12 months without late fees, and various options for repayment, including reinstatement, repayment plans, payment deferral, and loan modifications. Additionally, homeowners outside declared disaster areas facing disaster-related losses are also eligible for relief. For further assistance, impacted homeowners should reach out to their servicers.

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• Freddie Mac offers immediate disaster relief options for homeowners affected by Hurricane Ida.
• Short-term forbearance available for up to 12 months without late fees or penalties.
• Multiple options for homeowners to manage missed payments, including payment deferral and loan modifications.

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• None.

MCLEAN, Va., Aug. 30, 2021 (GLOBE NEWSWIRE) -- Freddie Mac (OTCQB: FMCC) today reminded homeowners and mortgage servicers of its immediate disaster relief options for those affected by Hurricane Ida along the northern Gulf Coast states.

“The priority for everyone is to focus on their safety,” said Bill Maguire, Freddie Mac’s Vice President of Single-Family Servicing Portfolio Management. “Along with our mortgage servicers, Freddie Mac stands ready to provide immediate mortgage relief options to those affected by Hurricane Ida.”

Freddie Mac's disaster relief options are available to homeowners whose homes or places of employment are located in presidentially-declared Major Disaster Areas where federal individual-assistance programs are made available to affected individuals and households.

Maguire added, “Once safe, homeowners whose homes are impacted should contact their mortgage servicer—the company they send their monthly mortgage payments to— as soon as possible to talk about available mortgage relief options. This also includes homeowners whose places of employment have been impacted resulting in a financial hardship that prevents them from being able to make their monthly payment.”

Mortgage servicers may immediately leverage Freddie Mac’s short-term forbearance programs to provide homeowners mortgage relief for up to 12 months without incurring late fees or penalties. Foreclosure and other legal proceedings are also suspended while homeowners are on a forbearance plan.

Once back on their feet, homeowners have several options to make up the missed payments, including additional forbearance, if needed.

• Reinstatement. The option for a lump sum payment is available, but never required, if the homeowner’s loan is owned by Freddie Mac. If possible, however, it is the fastest way to get back on track.
• Repayment plan. Homeowners pay more each month on top of their existing mortgage payment to make up the missed payments.
• Payment Deferral. This option is available if homeowners can resume making their regular monthly payment. With payment deferral, homeowners become immediately current on their mortgage and missed payments are added to the end of the mortgage term without interest or penalties.
• Loan modification. If a homeowner is facing a long-term financial hardship but can make a reduced mortgage payment, a modification may be the best option.

Freddie Mac also reminds servicers that its disaster relief options are available to affected homeowners outside the declared disaster areas if their home incurs a disaster-related insured loss that impacts their ability to make their mortgage payment.

Affected homeowners currently on a COVID-19-related forbearance or other relief plan, including from a previous natural disaster, should contact their servicer to discuss options.

Freddie Mac makes home possible for millions of families and individuals by providing mortgage capital to lenders. Since our creation by Congress in 1970, we've made housing more accessible and affordable for homebuyers and renters in communities nationwide. We are building a better housing finance system for homebuyers, renters, lenders, investors and taxpayers. Learn more at FreddieMac.com, @FreddieMac and Freddie Mac's blog.

MEDIA CONTACT: Chad Wandler
703-903-2446
Chad_Wandler@FreddieMac.com

FAQ

What disaster relief options does Freddie Mac offer for Hurricane Ida victims?

Freddie Mac provides immediate mortgage relief options, including short-term forbearance for up to 12 months, repayment plans, payment deferral, and loan modifications for homeowners affected by Hurricane Ida.

Can homeowners outside declared disaster areas receive Freddie Mac's disaster relief?

Yes, homeowners outside the declared disaster areas who incur disaster-related insured losses affecting their mortgage payments are also eligible for relief.

How long can homeowners benefit from Freddie Mac's forbearance options?

Homeowners can benefit from Freddie Mac's forbearance options for up to 12 months without incurring late fees or penalties.

What should affected homeowners do to access Freddie Mac's relief options?

Affected homeowners should contact their mortgage servicer as soon as possible to discuss available mortgage relief options.

What types of repayment options does Freddie Mac offer after forbearance?

Freddie Mac offers reinstatement, repayment plans, payment deferrals, and loan modifications for homeowners to manage missed payments after forbearance.