Mortgage giant Freddie Mac is extending its foreclosure suspension on mortgages in the Hurricane Katrina and Rita disaster areas through the end of February, the company said today.

The government-sponsored enterprise is extending foreclosure suspension through Feb. 28, 2006, and is adopting other policies so servicers can continue to extend “the highest level of understanding” to storm victims seeking to extend the mortgage suspension period that ends today, the company said.

The new policy only applies to Freddie Mac-owned loans on homes in major disaster areas designated by FEMA as qualifying for individual assistance, the company said. The mandatory forbearance and foreclosure suspensions adopted after Hurricanes Katrina and Rita have helped several thousand borrowers cope with the aftermath of the two storms.

To make the post-Dec. 1 extension process more efficient for more borrowers, Freddie Mac is waiving its usual documentation requirements and giving servicers the authority to extend forbearance to all of the borrowers in especially distressed areas, the company said. Individual borrowers will also be allowed to extend forbearance on a case-by-case basis, according to the company.

Freddie Mac is also telling servicers not to report hurricane-related delinquencies to credit agencies through Feb. 28 and strongly advising them to forego collecting penalties or late fees as mortgages are reinstated, the company said.

“Our servicers have done an outstanding job helping Gulf Coast borrowers. Today’s announcement extends our mortgage relief policies to the borrowers who may need more time to recover their incomes or homes while helping our servicers resume normal business operations,” said Freddie Mac Chairman and CEO Richard Syron in a statement.

***

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

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
We're giving away 3 free ICLV tickets at Connect Now next week. Register and attend live for your chance to win!REGISTER×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
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