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Back to Hurricanes Katrina
and Rita Main
Information for Servicers About Requirements for Closed Mortgages in Areas
Affected by Hurricane Katrina
(New as of September 26, 2005)
Along with critical borrower relief efforts, we also recognize that many
of our customers conducting business in the Hurricane Katrina affected areas need
assistance with their impacted mortgage business. On September 26, we announced
new measures to assist Freddie Mac Sellers with closed single-family mortgages
secured by properties in the Major Disaster Areas qualifying for Individual Assistance
as designated by FEMA. We encourage Servicers to review
these measures and note the following specifically for Servicers:
Borrowers will be immediately eligible for the mortgage payment and other
forbearance relief options we announced to assist Hurricane Katrina victims.
If you have already entered into a forbearance agreement with the borrower
for these mortgages that are different than our current options, please call
your Freddie Mac Loss Mitigation representative. - The recourse required for sale of these mortgages is the recourse described
in Guide Section 11.10 (a), and includes instances where the mortgage defaults
and goes to REO, short sale or charge-off within the first three years from
the funding date, or after three years from the Freddie Mac funding date,
when the recourse has not been removed.
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