Freddie Mac Okays Forbearances For Borrowers With Problem Drywall

Posted by Orb Staff on June 21, 2010 No Comments
Categories : Mortgage Servicing

e Mac has 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. 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,’ says Freddie Mac's 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 12 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. SOURCE: [link=http://www.freddiemac.com/news/archives/singlefamily/2010/20100618_drywall.html]Freddie Mac

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