Industry News

Freddie Mac defers mortgage payments for Hurricane Rita victims

Extends relief policies to single-family borrowers

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Mortgage giant Freddie Mac will defer October and November mortgage payments for single-family borrowers affected by Hurricane Rita, the government-sponsored enterprise said Tuesday. In addition to suspending the next two months of mortgage payments, Freddie Mac is also extending Hurricane Rita survivors the special mortgage servicing relief policies it announced after Hurricane Katrina to ease the financial pressures on borrowers with Freddie Mac-owned mortgages. The temporary suspension applies to Freddie Mac-owned single-family loans in federally declared disaster areas where FEMA's Individual Assistance programs are being made available. None of these temporary measures will affect Freddie Mac's guarantee on its mortgage participation certificates, the company said. "We are determined to go the extra mile to help Texas and Louisiana borrowers cope with this year's unusually destructive storms in the Gulf of Mexico," Freddie Mac Chairman and Chief Executive Officer Richard F. S...