Freddie Mac Zone Designations for Areas Impacted by Hurricanes Katrina and Rita

(Revised as of September 10, 2007)

Since the devastating 2005 hurricanes, we have evaluated information about the extent of the damage in eligible Disaster Areas, which are comprised of counties/parishes that have been declared by the President of the United States to be Major Disaster Areas where federal aid in the form of individual assistance is being made available. We have also conducted detailed field and aerial reviews of the areas.

As a result, we established three zones and have assigned a zone number to each county/parish in the eligible Disaster Areas. The zone designations must be used by Servicers to service mortgages owned by Freddie Mac and by Sellers to originate mortgages pursuant to the temporary selling requirements. They should not be used for any other purpose.

Now, with the September 10, 2007 Single-Family Seller/Servicer Guide (Guide) Bulletin [PDF 81K], we are discontinuing the application of the three-zone methodology we established in our February 10, 2006 Bulletin for servicing mortgages owned by Freddie Mac.  Effective October 1, 2007 Servicers no longer need to obtain Freddie Mac approval for the following activities based solely on the location of the property: initiating or resuming foreclosure, and completing any lender-initiated property preservation work.  Note that the zone methodology remains in place for origination requirements.

Zone One – minimal to no damage

Freddie Mac estimates that properties in counties/parishes located in Zone One have sustained minimal to no damage as a result of Hurricane Katrina and Hurricane Rita.

Zone Two – moderate damage

Freddie Mac estimates that properties in counties/parishes located in Zone Two have sustained moderate damage.

Zone Three – significant damage

Freddie Mac estimates that properties in counties/parishes located in Zone Three have sustained significant damage. Freddie Mac Zone Designations

Freddie Mac Zone Designations