Freddie Mac extends forbearance to unemployed borrowers
Freddie Mac is giving
mortgage servicers expanded authority to provide six months of forbearance to
unemployed borrowers without Freddie Mac's prior approval and up to an
additional six months with prior approval. This means unemployed
borrowers may be eligible for up to 12 months of forbearance. Freddie
Mac's forbearance options are being expanded at the direction of the Federal
Housing Finance Agency and will take effect on Feb. 1.
Delinquent borrowers in
an existing short term forbearance plan can be evaluated for an extended
forbearance under the new policy.
Previously, Freddie Mac
allowed servicers to grant up to three months of forbearance with no payment
and without prior approval, or six months at a reduced payment with prior
approval. Longer forbearance required prior approval and was generally
restricted to events such as natural disasters, permanent disability or long-term
medical emergencies.
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