Freddie Mac Suspends Mortgage Payments for Borrowers Affected by Hurricane Rita Special Relief Provided After Hurricane Katrina

Extended to New Storm Victims



    MCLEAN, Va., Sept. 27 /PRNewswire/ -- Single family mortgage borrowers
 whose lives were disrupted by Hurricane Rita may defer their October and
 November payments if their mortgages are owned by Freddie Mac (NYSE:   FRE), the
 company announced today.  In addition to suspending the next two months of
 mortgage payments, Freddie Mac said it was extending to victims of Hurricane
 Rita all of the special mortgage servicing relief policies it announced to
 ease the financial pressures on borrowers with Freddie Mac-owned mortgages
 after Hurricane Katrina.
     The temporary suspension applies to Freddie Mac-owned single-family loans
 in federally declared disaster areas where FEMA's Individual Assistance
 programs are being made available.  None of these temporary measures will
 affect Freddie Mac's guarantee on its Mortgage Participation Certificates
 (PCs).
     "We are determined to go the extra mile to help Texas and Louisiana
 borrowers cope with this year's unusually destructive storms in the Gulf of
 Mexico," said Freddie Mac Chairman and CEO Richard F. Syron.  "Protecting
 investors while helping borrowers overcome unexpected shocks like Hurricanes
 Rita and Katrina is part of Freddie Mac's mission to keep America's housing
 finance system affordable, stable and liquid," Syron added.
     After November servicers have the discretion to continue suspending or
 reducing payments on Freddie Mac-owned mortgages for a total of 12 months on a
 case-by-case basis, depending upon each borrower's specific circumstances.
 Servicers must make their determinations before the mortgage's December
 payment due date.  A servicer is the company to which borrowers send their
 monthly mortgage payments.
     For those borrowers who may have already made their October mortgage
 payments, Freddie Mac is giving its servicers the discretion to automatically
 return payments withdrawn through an automated clearinghouse but not yet
 reported to Freddie Mac.  Borrowers who made their October payments through
 other means have the option to contact their servicers to request their
 payment's return.  In either case, borrowers will still be required to work
 with their servicer to reinstate their mortgage once the temporary suspension
 period ends.
 
     Freddie Mac today also instructed its servicers:
 
       * Not to report to credit bureaus any reversed and suspended payments on
         Freddie Mac-owned loans as a result of Hurricane Rita during the
         suspension period;
       * To suspend all late fees, collection and foreclosure activities in the
         federally declared major disaster areas during the suspension period;
       * To extend to all National Guard members on state duty involved in
         Hurricane Rita recovery operations mortgage relief comparable to the
         relief available under the Servicemembers Civil Relief Act.
 
     Freddie Mac is a stockholder-owned company established by Congress in 1970
 to support homeownership and rental housing.  Freddie Mac fulfills its mission
 by purchasing residential mortgages and mortgage-related securities, which it
 finances primarily by issuing mortgage-related securities and debt instruments
 in the capital markets.  Over the years, Freddie Mac has made home possible
 for one in six homebuyers and nearly four million renters in America.
 http://www.FreddieMac.com
 
 

SOURCE Freddie Mac
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