A new White House initiative aims to increase mortgage benefits to service members. Participating banks and institutions will contact eligible military personnel to offer mortgage relief. The initiative includes a six percent interest rate cap for eligible, active service members ─ during their military service and for one year after.
Foreclosure relief is also provided for service members up to one year after their service ends.
The Servicemembers Civil Relief Act prohibits the sale, foreclosure or seizure of property secured by an eligible mortgage during this time period.
Freddie Mac is providing resources and guidelines to servicers so they can effectively implement military relief for borrowers with Freddie Mac-owned mortgages.
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