MCLEAN, Va., June 18 /PRNewswire/ -- Freddie Mac today announced that servicers may grant forbearances on a case-by-case basis to borrowers with Freddie Mac-owned mortgages secured by single family homes that contain problem drywall. Freddie Mac is one of the nation's largest investors in residential mortgages.
The announcement comes in response to a federal study that found a strong connection between some types of drywall and foul odors and metal corrosion in homes. The vast majority of complaints have come from homeowners in Virginia and states along the Gulf Coast.
"Freddie Mac's goal is to help borrowers cope with these unusual drywall problems by instructing our servicers to give them the full measure of relief available under our policies," said Freddie Mac Vice President of Loss Mitigation Yvette Gilmore. "This will help more borrowers shoulder the unexpected cost of remediation and continue to succeed as long-term homeowners."
Freddie Mac's forbearance policies give servicers the discretion to suspend a borrower's mortgage payments for up to three months or reduce payments for up to six months. Servicers may recommend forbearance for up to twelve months, based on the borrower's individual circumstances.
Under Freddie Mac's requirements servicers must not accrue or collect late charges from the borrower during a short-term forbearance or any subsequent repayment plan period if the borrower is paying according to the forbearance agreement.
For more information on Freddie Mac, see http://www.freddiemac.com.
Freddie Mac was established by Congress in 1970 to provide liquidity, stability and affordability to the nation's residential mortgage markets. Freddie Mac supports communities across the nation by providing mortgage capital to lenders. Over the years, Freddie Mac has made home possible for one in six homebuyers and more than five million renters.
SOURCE Freddie Mac