126.96.36.199 Mandates to Servicers
Freddie Mac132 authorizes its mortgage servicers, after a natural disaster, to take certain actions, but it only mandates the following specific borrower protections:
- ● Suspend all foreclosure sales beginning on the date that FEMA declared the area to be an Eligible Disaster Area and lasting through December 31, 2017, unless the property was identified as vacant or abandoned prior to the disaster.133
- ● Suspend post foreclosure evictions in areas impacted by Hurricane Harvey until further notice.134
- ● Suspend all credit reports about borrowers who are participating in a disaster-related forbearance plan, repayment plan, or Trial Period Plan to the credit repositories. Freddie Mac Single-Family Seller/Servicer Guide § 8404.5(a).
- ● Do not assess late charges if the borrower is on a forbearance plan or paying as agreed on a repayment plan. Freddie Mac Single-Family Seller/Servicer Guide § 8404.4(d).
132 A primary resource for information is the Natural Disaster Relief page on the Freddie Mac website, www.freddiemac.com. This page, which describes disaster relief policies and Freddie Mac policies for major disaster declarations, references chapter 8404 of the Freddie Mac Single-Family Seller/Servicer Guide.
133 Freddie Mac, Freddie Mac Disaster Relief—Herricanes Harvey & Irma, available at www.freddiemac.com.