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Hurricane Michael: Freddie Mac Confirms Disaster Relief Policies. Disaster Relief Policies When a disaster strikes, borrowers whose homes or places of employment have been impacted may experience disruptions in their ability to make on-time mortgage payments. Therefore, we require Freddie Mac Sellers and Servicers to be responsive to any requests for assistance from affected borrowers using options available through our Single-Family Seller/Servicer Guide (Guide) and/or Guide Bulletins with temporary requirement changes tailored to address recent disasters. In addition to assisting borrowers who are disaster victims, Servicers must begin determining the disaster's impact on the mortgaged properties. Sellers should review the Guide (and recent Guide Bulletins) and their procedures for inspecting and recertifying a mortgaged property's value, condition, and marketability when a major disaster occurs. Most importantly, we rely on both Sellers and Servicers to determine the number of impacted properties and the extent of damage to each.
Freddie Mac Policies for Major Disaster Declarations When disaster strikes and causes extensive damage, the President of the United States may issue a Major Disaster Declaration for certain localities and the Federal Emergency Management Agency may authorize federal Individual Assistance programs for affected individuals and households within certain parts of the major disaster area. In the event such a declaration is made, Sellers and Servicers should follow these steps. To assist borrowers with Freddie Mac-owned mortgages who reside or work in the designated Eligible Disaster Areas, Servicers must immediately begin following the disaster relief requirements outlined in Guide Chapter 8404 (and/or applicable disaster-related Guide Bulletins), which include: • Placing an impacted borrower, based upon the Servicer’s discretion, into a forbearance plan by assessing the extent of the property damage and the financial impact to the borrower.
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