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Freddie Mac Extends Mortgage Relief to Borrowers Affected by Hurricane Ike

McLean, VA – Freddie Mac (NYSE: FRE) today reminded its servicers of the disaster relief options available to borrowers with Freddie Mac-owned mortgages who were affected by Hurricane Ike. Freddie Mac is one of the nation's largest investors in residential mortgages.

"Freddie Mac and the nation's mortgage servicers will work together to bring some measure of financial relief to homeowners affected by Hurricane Ike" said Ingrid Beckles, vice president of servicing and asset management at Freddie Mac.

Servicers can offer relief under Freddie Mac guidelines to borrowers whose homes were damaged or destroyed, as well as borrowers who may be unable to make their mortgage payments because they were evacuated to avoid the storm. Servicers should assess each case individually to determine if relief is warranted and which option best fits the homeowner's circumstances.

In addition, Freddie Mac gives servicers the discretion to reduce or suspend mortgage payments or foreclosure proceedings for up to 12 months for borrowers with Freddie Mac-owned mortgages in federally declared major-disaster areas where individual assistance was provided.  For more information, see freddiemac.com/singlefamily/relief.html.

Freddie Mac strongly encourages servicers to extend several other measures to help affected borrowers with Freddie Mac-owned loans:

• Waiving assessments of penalties or late fees against borrowers with disaster-damaged homes; and,
• Not reporting borrowers to the nation's credit bureaus when a forbearance or repayment plan has been extended because of the disaster.

Freddie Mac also says it will allow forbearances on mortgages on multifamily properties materially damaged by the storm.  Affected properties will be evaluated on a case-by-case basis.

Freddie Mac is a stockholder-owned corporation established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac raises capital on Wall Street and throughout the world's capital markets to finance mortgages for families across America. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.

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