Monday, January 9, 2012 / by Justin Hoffmann
According to PRNewswire, the authorization to servicers came at the direction of the Federal Housing Finance Agency (FHFA) which acts as conservator for both Freddie Mac and Fannie Mae so it is reasonable to expect a similar announcement from the other GSE, perhaps today. The same source said that latest statistics tie almost 10 percent of Freddie Mac's delinquencies to unemployment.
Prior to this announcement Freddie Mac had permitted its servicers to authorize non-payment forbearance for three months without preapproval or for six months at a reduced payment with prior approval. Anything longer term required prior approval and was generally restricted to events such as natural disasters, permanent disability, or long-term medical emergencies.
According to information released by Freddie Mac, delinquent borrowers who are already in a short-term forbearance plan can be evaluated for an extended plan under the new policy.
Tracy Mooney, Senior Vice President, Single-Family Servicing and REO, Freddie Mac said, "These expanded forbearance periods will provide families facing prolonged periods of unemployment with a greater measure of security by giving them more time to find new employment and resolve their delinquencies. We believe this will put more families back on track to successful long-term homeownership."
By Jann Swanson