Mortgage servicers can suspend mortgage payments or provide other short-term relief to borrowers with Freddie Mac-owned mortgages following Hurricane Wilma, the mortgage giant said today.

The policy applies to borrowers affected by Hurricane Wilma in federally declared major disaster areas, Freddie Mac said. Servicers collect monthly mortgage payments on Freddie Mac’s behalf.

Freddie Mac gives servicers the discretion to reduce or suspend mortgage payments for up to 12 months for borrowers with Freddie Mac-owned mortgages in the declared major-disaster areas, Freddie Mac said. Each case is individually assessed to determine the borrower’s situation and specific need for financial relief.

“By working together, Freddie Mac and the nation’s mortgage servicers can help relieve borrower anxiety about making next months mortgage payment so they can focus their energies on rebuilding their lives and homes,” said Richard F. Syron, Freddie Mac Chairman and CEO, in a statement.

“The relief measures we’re announcing today are also intended to expedite the release of insurance proceeds to help borrowers secure materials, labor and other resources to get the home repair process underway,” Syron said.

Freddie Mac’s disaster relief policies also strongly encourage servicers to extend several other measures to help affected borrowers with Freddie Mac-owned loans.

These include expediting the release of insurance proceeds to help borrowers secure materials, labor and other resources to repair their homes; waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and not reporting forbearance or delinquencies caused by the disaster to the nation’s credit bureaus.

Mortgage servicers working with Freddie Mac have helped more than 100,000 families over the past two years from losing their homes due to financial difficulties.


Send tips or a Letter to the Editor to or call (510) 658-9252, ext. 140.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Thank you for subscribing to Morning Headlines.
Back to top
Time is running out to secure your Connect Now tickets at the lowest price. Don't miss out on a chance to grow yourself and your business.Learn More×
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription